The new agreement allows ING Luxembourg to provide finance to innovative companies in Luxembourg for a total of EUR 50m over the next 2 years with the support of a guarantee provided by the EIF and backed under Horizon 2020, the EU Framework Programme for Research and Innovation. This is the first InnovFin SME guarantee signature in Luxembourg, enabling ING to offer innovative companies additional financing at favourable conditions.

Commenting on the signature at the event in Luxembourg, EIF Chief Executive, Pier Luigi Gilibert said: “I am pleased to be signing the first InnovFin SME Guarantee agreement in Luxembourg with ING for the benefit of innovative companies. Following this agreement, we are convinced that together with ING we can provide support to innovative businesses in need of finance in Luxembourg”.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "According to this year's Innovation Union Scoreboard, Luxembourg is among the top countries in Europe in innovation performance. The InnovFin SME Guarantee agreement signed today will stimulate this performance further by benefiting SMEs, which are at the heart of our economy."

Luc Verbeken, CEO ING Luxembourg added: “ING is very proud to be the first partner of the EIF in providing finance to Luxembourg innovative companies. It is an important part of our efforts to support local companies and more specifically SMEs which are key actors in the development of the Luxembourg economy.”

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.

About InnovFin SME Guarantee

InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million, in order to improve access to debt finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The InnovFin SME Guarantee is implemented by the European Investment Fund, and will be rolled out through financial intermediaries (banks and other financial institutions) in EU Member States and Associated Countries. Under the InnovFin SME Guarantee, financial intermediaries will be guaranteed by the EIF against a proportion of their losses incurred on the debt financing. InnovFin SME Guarantee is part of InnovFin - EU Finance for Innovators, a new range of EIB Group (including EIF and EIB) products to facilitate access to finance for innovative businesses. This transaction is supported with the financial backing of the European Union under Horizon 2020 Financial Instruments.