The European Fund for Strategic Investment (EFSI) was established in 2015 by the European Commission and is managed by the European Investment Bank. The European Commission’s original EUR 16 billion guarantee was increased to EUR 26 billion in 2017. The EIB Group’s commitment also increased in 2017 from EUR 5 billion to EUR 7.5 billion. With the assumed average multiplier of 15, this should allow for the mobilization of investments worth EUR 500 billion. Member States also contribute directly or through national development banks.
Support for investment projects under the Fund is provided in accordance with the principles of the EIB Group, also applicable to financial instruments of the EU framework programs. As part of the so-called Infrastructure & Innovation window, EIB loans and other forms of financing granted by EIB are available, which support project finance from the amount of EUR 7.5 million (with the EIB financing up to 50% of the project value).
In turn, under the SME & mid-cap window, the European Investment Fund (belonging to the EIB Group) launches guarantee and equity instruments, supporting access to financing for enterprises with up to 500 employees. Funding is provided by financial intermediaries using portfolio guarantees, securitization or equity financing.
For more details please go to the website: https://www.eib.org/en/efsi/