On-Lending Financing Operations



(in execution)

IFD – Instituição Financeira de Desenvolvimento, S.A. (IFD), as a National Promotional Institution (NPI), has the mission to design, structure and operationalise financing solutions In order to fulfill market’s failures in the access to finance by Portuguese SMEs, thereby contributing to economic growth and the creation of wealth and employment, with growing volumes of added value.

Following the European Commission approval, of the extension of its remit, and the publication of its new By-Laws, IFD will initiate its on-lending activity, lending funds from multilateral institutions or other NPIs to credit institutions operating in Portugal.

Therefore, within its attributions, IFD has requested from the European Investment Bank (EIB) a loan with an amount of up to EUR 250.000.000,00 (two hundred and fifty million euros) intending to finance, through credit institution or financial companies (financial intermediaries), projects developed by SMEs and mid-caps (companies with 250 to 3000 employees), hereby called Final Beneficiaries. EIB has granted IFD the first tranche of this loan, amounting to EUR 100.000.000,00 (one hundred million euros) under a financing contract signed between both parties, with an expectation of further tranches, as yet of unknown size, from this or other entities.

The use of these funds is intended to finance subprojects developed by Final Beneficiaries (companies), channelling these funds through financial intermediaries who directly co-finance those subprojects. Therefore, IFD will sign contracts only with financial intermediaries who, later, will finance final beneficiaries according to previously established criteria.

Qualification Process

Since this purpose will imply the signature of several contracts, which cannot be fully detailed at this time, IFD intends to previously select Financial Intermediaries to whom those funds will be made available, following a swift and transparent process in which all financial intermediaries previously qualified will be invited to participate. In order to guarantee effective competition, the qualification can be obtained at any time, so that entities which do not immediately declare their interest may do so later (previous qualification is, however, a necessary condition for a later invite to participate in procedures intended to attribute funds for financing Final Beneficiaries).

IFD thus communicates Financial Intermediaries the opening of a pre-qualification procedure in order to select the entities to be later invited to participate in pre-contract procedures, which will always include a negotiation stage, intending to channel the funds available, at this time or on later dates, from on-lending operations, with EIB or other multilateral entities or NPIs, as set in this Call, in full respect of the principles of competition and transparency.

Documents:

Call for Expression of Interest
Template Letter for Expression of Interest

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