Areas of Business

Products

An analysis of the potential financial solutions and instruments that better serve companies has dictated the selection of the following products to be offered by IFD.

Financial Instruments co-financed by ESIF

Debt Financing

  • Support to the Counter-Guarantee Fund, for partial counter-guarantee of the guarantees issued by specialised entities (MGS) on bank loans to SME.
  • Interest or guarantee fee subsidies to SME on guarantees issued by specialised entities on bank loans granted to SME.
  • Support to the development of securitization instruments of SME loan portfolios.
  • The possibility of support to instruments that act on or present new products within the Juncker Plan, and even loan or bond funds, destined to very specific purposes or in areas where the market offers no solutions.

Equity or Quasi-Equity Financing

  • Underwriting of Venture Capital Funds:
    – Instruments to be developed together with private investors.
    – Targeting solutions to the various business development stages of the target SME, through the promotion of different vehicles such as Seed Capital, Start-Up and Development Capital Funds and, if possible, transfer of ownership.
  • Underwriting of funds specialised in Quasi-Equity (atypical and innovative):
    – In order to strengthen SME’s equity and long-term debt financing, resources may be directed into investment in new instruments that offer quasi-equity financing products, such as Mezzanine and Subordinated Debt, Preferential Shares, Participating Bonds, Convertible Bonds and Reversible Equity, among others.
  • Underwriting of Co-investment Funds with Business Angels:
    – Instruments to be developed together with private investors.
    – In order to increase the investment by Business Angels in SME, new co-investment programs will be developed, namely through funds or collective investment vehicles, with industry specialisation, if necessary, to support projects and companies (especially innovative companies) in the early stages of their activity.

Management of funding from international financial institutions

Debt Financing

  • Instruments to be developed together with international entities (multilateral institutions, promotional banks from other countries) and the national retail banks.
  • Individual loans will be contracted in partnership with financial intermediaries, namely through the commercial banks’ networks.
    On Lending
    IFD may obtain financing from entities such as KfW or EIB, under advantageous price and maturity conditions, which IFD contracts on its balance sheet and then relends to national financial institutions so that they can then provide financing to companies.
    Arrangement
    IFD can act as arranger, negotiating financing with international institutions (such as KfW or EIB) which will be contracted directly with national financial institutions so that they can then provide financing to companies. These operations are off IFD’s balance sheet.

Coordination of the State-Owned Financial Companies and Design of Solutions
Instruments and Solutions Powered by IFD

Debt and Equity or Quasi-Equity

  • Solutions to be developed with existing entities (or using existing instruments) within the State-owned companies, such as SPGM, PME Investimentos, Portugal Ventures and SOFID, or with private financial operators, such as banks, the SGM, venture capital companies or Business Angels.
  • Intends to introduce conditions and solutions developed by or in partnership with IFD in existing financing programs or products that include public support, in order to better contribute to the financing of economic activities.
  • Coordination of State-owned entities in the area of financing companies’ activity or internationalization.