European Investment Bank 1 The Risk Sharing Finance Facility (RSFF); -innovative finance for innovation- 6 th WIPO FORUM ON IP and SMEs Cardiff, 10th September 2008 Dr. Jacques van der Meer

2 European Investment Bank EUROPEAN INVESTMENT BANK Promoting European Objectives

3 European Investment Bank The EIB Group The European Investment Bank (EIB) The European Investment Fund (EIF)

4 European Investment Bank EIB lending in 2007 (EUR 47.8 billion)

5 European Investment Bank Innovation 2010 Initiative (i2i) Enactment of the Lisbon Agenda ICT: Development of information and communication technologies and networks, modernisation and extension of networks, enhancing its accessability Education and Training: modernisation/ upgrading of education facilities; training centres for teachers, ICT-specialist, accessibility (student loans), etc. R&D and innovation private and public sector research, science parks, research centres and networks;

European Investment Bank 6 The Lisbon house Better Regulation / Internal Market Competitiveness and Innovation Framework Programme Industrial Policy SME Policy Innovation Policy R.S.F.F.

European Investment Bank 7 RSFF: the set up OWN RESOURCES EUR 1bn RSFF provisioning & capital allocation EUR 1bn Beneficiaries Size of loans Eligible projects and costs Terms and products EUR 10bn in Financing Capacity 5

European Investment Bank 8 RSFF: Policy objectives Support financing of innovative companies of any size and ownership for the implementation of eligible RDI projects Provide value added by sharing risks with promoters, banks and other financiers for the financing of eligible projects Offer RSFF access to small and medium sized projects and companies Priority of European Technology Platforms, Joint Technology Initiatives and Eureka Support European Research Infrastructures Support innovative clusters, networks

European Investment Bank 9 Beneficiaries of RSFF financing ? Mid-Caps and large corporates (unrated / sub investment grade / turnaround situations) SMEs Research Institutes Universities Special Purpose / Project Companies Research Infrastructure promoters Industrial and regional clusters/networks

European Investment Bank 10 Expenditures eligible for RSFF lending Project capital expenditures in tangible & intangible assets (Capital Formation) research staff cost (basic research, industrial research, development, pilot & demonstration plants; innovation (technological or organisational) incremental working capital needs. Development and Acquisition of -proprietory- IPR, and other related operating expenses Product innovation includes testing, prototyping and launch of pre-series of first commercial application Process innovation refers to development and introduction of new working methods and tools, such as ICT-driven innovation

European Investment Bank 11 RSFF, definition of the loan size Eligible CostsMax. EIB Financing mEUR Eligible Costs RDI Budget 50% ELIGIBLE COSTS € 20m Project related CAPEX on tangible & intangible assets Research staff cost Incremental working capital Related operating costs Time Year 1 € 10mYear 2 € 30mYear 3 Total€ 60m Investment costs can encompass 3-4 years RSFF can be used to finance up to 50% of the eligible investment costs Up front or flexible disbursement (e.g. at mile stone events) to match Cash Flow Minimum size per loan: > EUR 7.5m (minimum “project-size” EUR million)

European Investment Bank 12 RSFF Financing terms  Medium and long term financing, depending on “assets” and risk profile  Project assessment : eligibility, techno-economic and financial viability and risks  In-house sector / risk pricing expertise  No equity stake, hence no dilution of ownership  Grace period, to march CF of the project  Milestone events related pricing (?)

European Investment Bank 13 RSFF product development…. Corporate Loans (senior / junior) Project Finance (limited/non recourse) Mezzanine Loans Risk Sharing Facilities with banks, corporates, others… Other structured products

European Investment Bank 14 Dr. Jacques B.H. van der Meer Projects Directorate Innovation and Competitiveness Department Manufacturing and Industry (RDI) Phone: (+352) Fax: (+352) European Investment Bank 100, boulevard Konrad Adenauer L-2950 Luxembourg