EIB SME and MIDCAPS Fund

Objective

To assist SMEs and MIDCAP companies to access loan financing for CAPEX, medium and long term working capital.

Qualifying Criteria

• Application must meet IDC and EIB mandated sectors;
• Available to SME and MIDCAP companies. MIDCAP means companies that have up to 3000 employees (full time equivalent);
• Funding provided for CAPEX and medium to long term working capital;
• Final Beneficiary (company) and project location must be South African;
• Total cost of a project must not exceed R450 million;
• Only eligible to Autonomous Enterprises, where the enterprise does not hold 25% or more of the capital or voting rights in one or more other enterprises and no enterprise has a stake of 25% or more of its capital or voting rights;
• Exempted Investors may hold up to 50% of the capital or voting rights but do not exercise a dominant influence. Exempted Investors are public investment corporations, venture capital companies and business angels, universities, non-profit research centers, institutional investors including regional development funds, autonomous local authorities with an annual budget of less than EUR10 million and fewer than 5 thousand inhabitants;
• EIB approval required before drawn down of the Funds’ facility; and
• Drawdown conditions apply.

Instruments and Pricing

• Loans;
• Minimum of R1 million and Maximum of R120 million per transaction;
• Normal IDC Risk pricing less 0.3%; and
• Aimed at transactions with longer repayment periods (8-12 years). Shorter periods may be considered on a case by case basis.