The agreement will allow BGL BNP Paribas to provide loans on advantageous terms to innovative SMEs in Luxembourg over the next two years. EIF’s guarantee is provided under the “EU InnovFin finance for Innovators” initiative with the financial backing under Horizon 2020, the EU Framework Programme for Research and Innovation. The agreement would not have been possible without the backing of the Investment Plan.

Commenting on the signature, European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Today marks yet another important date for innovative companies in Luxembourg, as EIF and BGL BNP Paribas sign the third InnovFin agreement in the country. The Investment Plan for Europe is delivering on its commitment to ensure better access to finance for SMEs across Europe. Given its success so far, we have proposed to extend the European Fund for Strategic Investments and place even more emphasis on giving a helping hand to small companies.”

EIF Chief Executive, Pier Luigi Gilibert said: “I am pleased to see that EIF is signing another EFSI InnovFin agreement in Luxembourg. As one of the biggest banking groups in the country, I am convinced that BGL BNP Paribas is very well placed to support innovative Luxembourgish SMEs and small mid-caps. Thanks to this EUR 40 million agreement, BGL BNP Paribas will continue to expand its offer in SME financing by proposing financing solutions with more favourable terms.”

Carlo Thill, Chairman of the Management Board of BGL BNP Paribas, said: “We are delighted to take part in this EIF programme. As a long-standing partner for small and medium-sized businesses in Luxembourg, is it important to BGL BNP Paribas to offer its entrepreneur clients the best possible solutions and to support them in financing their projects. InnovFin allows us to further broaden our product range and to offer more flexible and favourable financing conditions to innovative SMEs. This operation is perfectly in line with other partnership agreements BGL BNP Paribas signed in the past with the aim of actively contributing to the development of Luxembourg businesses.”

This transaction with BGL BNP Paribas reflects the EU's commitment to rapidly launch concrete initiatives under EFSI, significantly accelerating lending and guarantee transactions capable of boosting jobs and growth in the EU.