Release date: 4 October 2024
Promoter – Financial Intermediary
BPCELocation
Description
The operation will support the intermediary in providing finance to small and medium sized enterprises (SMEs), mid-caps as well as local authorities. 35% will be dedicated to innovation, aiming at supporting a sustainable growth.
Additionality and Impact
The project aims to bolster the financing of small-scale investments undertaken by SMEs in France. The operation will catalyse new finance to SMEs and Midcaps of EUR1.5bn. At least 35% of the facility will be earmarked for SMEs engaged in small-scale investments that contribute to research and development (R&D) and innovation. This initiative aligns with France's key economic strategies and digital transformation plans, such as the 'Plan d'Investissements d'Avenir' and 'France Relance', which are designed to enhance the competitiveness of French SMEs. Moreover, BPCE stands at the forefront of fostering innovation, with its dédicated business lines encapsulating a robust portfolio of several thousand pioneering companies spanning the entires pectrum of sectors.
The global economic uncertainties including the conflict in Ukraine, inflation, the energy crisis, and rising interest rates, have compounded the challenges faced by SMEs and mid-cap companies, particularly those focusing on innovation, in securing cost-effective, long-term financing. This project, by increasing the lending capacity, supports investments in expanding capacity, acquiring productive assets, and fostering innovation among French SMEs and mid-cap companies. Consequently, it enhances their access to finance and specifically to innovation finance, which is usually perceived to be more risky by banks.
These initiatives collectively aim to preserve existing employment, create new job opportunities, and sustain economic growth. The Financial Intermediary, with its long expertise in SME financing and an extensive network, ensures broader market penetration for the EIB financing in France. The involvement of the EIB is anticipated to yield positive outcomes, primarily in terms of the availability of long-term loans for SMEs and the reduction of overall financing costs.
Objectives
The aim is to finance small and medium sized projects carried out by the target beneficiaries.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 750 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 17/07/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).