Spain: EUR 10 million loan under InnovFin for Danobat RDI activities
OREANDA-NEWS. November 10, 2015. European Investment Bank (EIB) has signed a EUR 10 million agreement with Danobat S. Coop. for its RDI activities in the field of machine tools. EIB Vice-President Rom?n Escolano and DanobatGroup’s CEO I?igo Uc?n Azcue signed the finance contract on the occasion of the “Supporting Innovation in Spain” event organised by the EIB Group in Bilbao.
The EIB loan to Danobat, a cooperative group member of the Spanish MONDRAGON Corporation, will support investments related to three product categories, namely grinding, turning and equipment for manufacturing composite structural parts and it will be aimed at developing new solutions to serve the defined priority sectors.
Danobat’s RDI focuses on machine tools and advanced technological solutions to increase its clients’ competitiveness. The main research lines cover the area of advanced manufacturing for high value added components to enable: (i) improved efficiency based on multi-functionality (quick adaptability to different references, integration of machining, measuring and inspection operations); (ii) adoption of advanced technologies for higher productivity (maximum cutting capacity, higher accuracy, reduced vibrations) and (iii) improved sustainability of manufacturing processes (eco-efficient machines, eco-efficient production processes).
The RDI investments will be carried out in Spain and will be implemented until 2017. The EIB loan will support the company’s strategy and is expected to contribute to strengthening the innovativeness and competiveness of Danobat.
This long-term loan reflects the EIB’s commitment to supporting RDI and promoting the development of midcap companies. The activities are in line with the EU’s priority objectives under Horizon 2020 and are relevant to increase the technological base of EU manufacturing and the competitiveness of the European machine tool industry. By financing these RDI investments, the EIB will help to underpin the company’s growth and employment.
Danobat’s R&D project is supported by “InnovFin – EU Finance for Innovators”, a new range of EIB Group products which benefit from the financial support of the European Union under Horizon 2020 Financial Instruments and are designed to facilitate access to finance for innovative businesses.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
InnovFin financial products
Under Horizon 2020, the new EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Over the next seven years, "InnovFin – EU Finance for Innovators" will offer a range of tailored products which will make available more than EUR 24 billion of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructure. This finance is expected to support up to EUR 48 billion of final R&I investments.
InnovFin builds on the success of the Risk-Sharing Finance Facility developed under the seventh EU framework programme for research and technological development (FP7), which financed 114 R&I projects to the tune of EUR 11.3 billion and in addition provided loan guarantees worth over EUR 1.4 billion.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries will be eligible as final beneficiaries. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF.
InnovFin MidCap Growth Finance offers long-term senior, subordinated or mezzanine loans from EUR 7.5 million to 25 million for innovative larger midcaps (up to 3 000 employees), but also SMEs and small midcaps, with the aim of financing up to 50% of these companies’ investment programmes in R&I.