What is InnovFin Infectious Diseases?
InnovFin Infectious Diseases enables the EIB to provide typically between 7.5m EUR and 75m EUR of funding to innovative players active in developing vaccines, drugs, medical and diagnostic devices, and research infrastructure for combatting infectious diseases. Financing is aimed at projects that have completed the pre-clinical stage and for which clinical validation is needed for further development.
Indicative Term Sheet
- Instrument: broad range of products ranging from standard debt instruments (i.e. senior, subordinated and mezzanine operations) to risk-sharing instruments (RSL/equity-type operations)
- Loan size: 7.5m EUR to 75m EUR (most frequently 10m EUR – 25m EUR)
- Co-financing: the EIB finances up to 50% of eligible project costs; co-financing required from the company’s own resources, possibly supplemented by external sources
- Tenor: up to seven years
- Covenants & security: transaction-specific
- Jurisdiction: transaction-specific
- Application & inquiries: directly to the EIB; see contact details below
What are the benefits for you?
- Offers longer tenors and competitive pricing
- Provides a quality stamp and positive signaling effect;
- Does not offer other banking services such as FX, swaps, etc. (no competition with the company’s main banks)
- Pursues a long-term lending strategy and does not sell its exposures to third parties
Pre-screening and eligibility checklist
Eligible counterparties must comply with the following criteria:
- The promoter should be a large pharmaceutical company, a midcap or an SME, a research outfit/university, a not-profit entity, or a special-purpose vehicle (SPV).
- The borrower must be established and operating in one or several of the Member States and H2020 Associated Countries. The project and/or the intellectual property development (e.g. clinical trials) can be undertaken outside Member States and H2020 Associated Countries.
- The project must have a proven public health impact and potential market prospects.
- Proceeds must be invested in developing and producing innovative products, processes and/or services in the field of infectious diseases.
- Validated technology:
- Projects must relate to pre-commercial stage investments in the field of infectious diseases (ID), i.e. the project must develop and produce innovative vaccines, drugs, medical and diagnostic devices, and infrastructure in the field of ID.
- The product should have passed successfully through the pre-clinical stage or through the proof-of-concept stage (in the case of medical and diagnostic devices).
- Research infrastructure that provides facilities, resources and related services for use by the scientific community to conduct top-level research in the ID field.
- Prospects of bankability:
- The project shall generate sufficient revenues to have the potential to become bankable.
- This requirement relates to all aspects of the project that are relevant for future project performance and debt service.
- Promoters, sponsors and/or operators must be willing to substantially co-fund the project.
The operations to be financed will be selected by the EIB (from operations satisfying the eligibility criteria), also taking into account aspects such as the operation’s risk profile and bankability prospects, the overall Infectious Diseases Finance Facility (IDFF) funding available, portfolio composition and other transactions in the pipeline.
For additional questions: Sarit.Kimchi@iserd.org.il