FABENTECH (IEU TI HERA)

Promoter – Financial Intermediary

FABENTECH SA

Location

• France

Description

The operation will finance the promoter's research, development and innovation (RDI) investments related to the manufacturing of novel polyclonal antibodies against potential biothreats and emerging diseases. More specifically, the loan will support the part of the project concerning pandemic preparedness and industrial improvements (Nipah virus with pandemic potential and other costs).

Additionality and Impact

The project is aligned with the InvestEU objective of promoting research, development, and innovation. The purpose of the loan is to provide direct equity-type financing under INVESTEU, benefiting from the EC guarantee, to finance research and development activities of innovative biotech companies. In addition, the operation falls under the eligibility criteria (i) "Pathogens with pandemic or epidemic potential" and (ii) "Chemical, biological, radiological and nuclear (CBRN) threats originating from accidental or deliberate release" of article 3.2 of the HERA Invest Top-Up Annex.

 

The project, if successful, is expected to have significant financial and broader social benefits, in terms of the availability of treatments to counteract viruses with pandemic potential and biothreats. R&D and manufacturing are conducted in Europe, securing supplies for Europe. By supporting the promoter, the EIB enables the generation of European scientific knowledge and acumen and increasing highly skilled employment opportunities.

The financing of this project addresses the failure in financial markets for RDI-driven European SMEs suffering from systemic shortages of financing options for growth investments. Currently, the Company has limited access to financing sources from traditional or alternative debt providers. The financing structure is adjusted to the investment needs of the Company and provides a long tenor. By contributing to extending the cash runway and therefore to de-risking the development plan of the company, the EIB financing is expected to crowd-in third party investors and allow the company to accelerate its development. The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Objectives

The aim is to enable Fabentech to accelerate its RDI to develop emergency treatments against toxins and pathogens with pandemic/epidemic potential.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

EUR 55 million

Environmental aspects

The promoter's investments concern research, development and innovation activities that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an environmental impact assessment (EIA) under Directive 2011/92/EU. Full environmental details will be verified during appraisal.

Procurement

The promoter is a private company, not operating in the utilities sector and does not have the status of a contracting authority; thus the project is not covered by the EU directives on procurement. However, the promoter's procurement procedures are expected to be in line with EIB guidelines for private sector projects. Further details will be assessed during the project due diligence.

Status

Signed - 30/07/2024