Financing type: Subordinated loans
Under the InvestEU CBI Product, EIF shall support dedicated investments in selected Financial Intermediaries. Such dedicated investments shall be used by the selected Financial Intermediaries primarily, but not limited to, for the purpose of:
- investing in their organisational development and expansion, including branch expansion, scaling up or building up of IT infrastructures (e.g., mobile banking, etc.), investment in human resources such as recruitment and training of staff.
- strengthening their operational and institutional capabilities aiming at contributing to their sustainability; this includes, inter alia, investments in working capital and in improving the strategic/governance capabilities in order to maintain a balanced business, financial sustainability and social performance focus; and
- institutional capacity building to increase their indebtedness capacity while supporting them to retain a balanced socio-commercial orientation. Investments made under this product are not directly linked to the origination of a portfolio of loans in microfinance, social entrepreneurship or skills and education finance. However, in order to be eligible for investment, the financial intermediary should be primarily operating in the microfinance, social entrepreneurship finance and/or skills, education and training finance spaces and should be able to provide financing to and/or serve the Target Areas.
Who is eligible
The call targets financial Intermediaries that:
- represent that they are not in any of the Exclusion Situations, as further described in the Annex I
- comply with the relevant international and EU standards and legislation, where applicable, on the prevention of money laundering, the fight against terrorism, tax fraud, tax evasion and artificial arrangements aimed at tax avoidance and shall not perform any illegal activities;
- not be established in an NCJ, unless the CBI Operation or the project being financed by the CBI Operation, as applicable, shall be physically implemented in the relevant NCJ and shall not present any indication that they support actions that contribute to (i) criminal activities such as money laundering, financing of terrorism, tax crimes (i.e. tax fraud and tax evasion) and/or (ii) wholly artificial arrangements aimed at tax avoidance.