Financial Partner of the Brussels-based SMEs Innovating through EU Regional Policy 12 th June 2006...
-
Upload
leslie-stuart -
Category
Documents
-
view
214 -
download
1
Transcript of Financial Partner of the Brussels-based SMEs Innovating through EU Regional Policy 12 th June 2006...
Financial Partner of the Brussels-based SME’s
Innovating through EU Regional Policy 12th June 2006
Mobilising & Sustaining Private Investment
Serge VilainChairman
History and mission
Brussels Regional Investment Company S.R.I.B. - G.I.M.B. Set up in 1984
Size: Capital share: EUR 75 mio Equity: EUR 138 mio
Shareholders: Brussels-Capital Region 76% Private: 24%
Main mission: to support the creation and the growth of brussels-based companies
Brussels-Capital Region : Some data
o Set up in 1980o Surface area: 162km2 - 19
communeso Population:
• 1 mio inhabitants (9,7% pop. Belgium)
• Unemployment: 16% pop.o Economy:
• Service-oriented economy• 17% of the salaried belgian
population in Brussels
Why a Regional Investment Company ?
- to equity for SME’s
- to start-up capital
- to micro-financing
Banks = main sourceof financing
But structural changes + Basel II
to bank financingfor SME’s
MarketFailures
FinanceGap
S.R.I.B. acts
to improve
the access
Limited scope ofthe Venture Capital
Industry
Limited access to start-up financing
Micro-financing
Financial Instruments
Contribution in equity or quasi-Contribution in equity or quasi-equity equity
Start-up financing
Local & social economy
Association with Fonds de Participation
Investments’Cofinancing
Capital expansion & buy outs
Guarantees to obtain bank credit
Partnership with EIB
Facilitating the SME’s bank Facilitating the SME’s bank financing by partnershipsfinancing by partnerships
o Forms of financing: • equity (minority shareholding) - exit
planned after 5 to 7 years• long term loans (without security),• convertible loans, …
o Scope of investments: • Seed & start-up financing (Brustart) • Expansion capital & buy outs (SRIB) • not limited to high growth potential
companies
o Amount of the investment: • from EUR 12K to EUR 3,7 mio
o Goals: • Added value for the Region • Return On Investment
o Advice & supporto Leverage effect: bank financing /
others investors
Some companies in portforlio
Equity & quasi equity
Subordinated loan Subordinated loan
•From EUR 5.000 to From EUR 5.000 to EUR 50.000EUR 50.000
•Rate: 4%Rate: 4%
Micro-creditMicro-credit::
•IndividualsIndividuals
•Personal contribution: Personal contribution: min EUR 620min EUR 620
•Loan from EUR 1.250 to Loan from EUR 1.250 to EUR 12.500EUR 12.500
•Rate: 4%Rate: 4%
Fonds d’amorçageFonds d’amorçage::
• CompaniesCompanies
•Founders contribution : min Founders contribution : min EUR 6.200EUR 6.200
•Loan from EUR 5.000 to EUR Loan from EUR 5.000 to EUR 75.00075.000
•Rate: 4%Rate: 4%
Local EconomyLocal Economy
Support to the development of businessesSupport to the development of businesses established in zone Objectif IIestablished in zone Objectif II
Social EconomySocial Economy
Support to activities Support to activities with a social goal with a social goal
o Set up in 2001 o Cofinanced by structural funds (Objectif II)o Goal: Support to social & local economy
Micro-financing
SRIB Portfolio
Investments in +/- 250 businesses Investments in +/- 250 businesses
% invested amounts 31.12.2005 per activity sector (exc. Brusoc)% invested amounts 31.12.2005 per activity sector (exc. Brusoc)
Investments made in 2005
In EUR Nb investments in 2005InvestedAmounts
Average Equity Loans Total
7 8 15 6.297.952 419.863
6 6 12 2.305.000 192.083
0 52 52 1.093.280 21.025
Total: 13 66 79 9.696.232 122.737
Financial Instruments
Contribution in equity or quasi-Contribution in equity or quasi-equity equity
Start-up financing
Local & social economy
Association with Fonds de Participation
Investments’Cofinancing
Capital expansion & buy outs
Guarantees to obtain bank credit
Partnership with EIB
Facilitating the SME’s bank Facilitating the SME’s bank financing by partnershipsfinancing by partnerships
62
152
254
382
0
50
100
150
200
250
300
350
400
450
2002 2003 2004 2005
o Goal: to facilitate the SME’s financing by providing the guarantee of the Brussels Region in order to obtain a bank credit
o Cover up to 75% of the bank credit (85% for starters)
o For individuals and SME’s (european definition)
o From july 2003: Management of the Fund by SRIB / Fonds de participation)
o Nearly 400 demands analyzed in 2005
o Activity 2005 = 5 x activity 2002
B2E – Bruxelles PME – KMO Brussel
New financial instrument of the SRIB Group
Set up in March 2006
EUR 28 mios(15 capital – 13 loan)
Loan EUR 50 miosWith guarantee of the Brussels-Capital Region
SME’s
Banks“pari passu”loans
Goal: to facilitate the long term financing of the Brussels-based SME’s Size: EUR 78 mios – financed by SRIB and EIB
B2E – Cofinancing activity
Bank
Brussels-based SMEInvestment > 200K
Loans“pari passu”
From 100K to 750K
Rate = Bank rate – 15 pts
50%Max
50%Min
• Long term loans (min 3 years)• Cofinancing pari passu with banks leverage effect • Amount loans B2E: from EUR 100K to EUR 750 K – max 50%• Interest rate: bankrate – 15 basis pts• Decision process:
•demand of cofinancing introduced by the bank •decision within 2 weeks
B2E – Eligible projects
o Tangibles investments: Tangibles investments: machines, IT, machines, IT,
buildings, ….buildings, ….
o Intangibles investments: Intangibles investments: patents & licences, patents & licences,
R&D, protoypes, R&D, protoypes,
development of a new product or production process, development of a new product or production process, ……
Investments to be made by SME’s SME’s: european definition Activity: all sectors except the non-ethical sectors Investments:
For more information:
S.R.I.B. – G.I.M.B.Rue de Stassartstraat 321050 Bruxelles – Brussel
Phone: 02 /548 22 11www.srib.be – www.gimb.be