1 Financial Instruments for SMEs in COSME AGORADA, Brussels, 26 May 2016 Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Unit H3, Astrid Bartels (Team Leader COSME Financial Instruments)

COSME overview COSME: European programme solely dedicated to SMEs 60% of total COSME programme dedicated to financial instruments - over €1.3 billion Support those SMEs which would otherwise not obtain financing Overall targets supporting up to SMEs Debt and equity financial instrument:  Loan Guarantee Facility (LGF)  Equity Facility for Growth (EFG) 2

Details of the Loan Guarantee Facility Policy objective: Support for transactions which otherwise would not have taken place (e.g. perceived higher SME risk, insufficient collateral across all sectors) Guarantees to financial intermediaries for newly generated SME financing portfolios (commercial banks, promotional institutes, guarantee societies, alternative lending platforms) Broad coverage: working capital, bank loans, subordinated loans, bank guarantees, leasing transactions 3

Details of the Equity Facility for Growth Policy objective Attract private capital into venture capital (VC) investments and support creation of a pan-European VC market Support those funds which invest on a cross-border basis or which help portfolio companies to internationalise Focuses on investments into equity funds which in turn invest into SMEs at the growth and expansion stage (complementary to Horizon 2020 early stage facility) Joint investments with Horizon 2020 into funds that invest across development stages 4

Delegated implementation 5

5 31 COSME guarantee agreements signed in 17 Countries per 31. March 2016 Financial Intermediary Budget (€m) 1Austria Wirtschaftsservice GmbHAT7,3 2Flemish Participation FundBE3,4 3SowalfinBE3,7 4CIBankBG4,1 5CMZRBCZ5,7 6Komercni BankaCZ2,8 7The Danish Growth Fund (Vaekstfonden)DK3,6 8KREDEX - Credit and Export Guarantee FundET4,5 9BPCE (SOCAMA)FR31,5 10France Active GarantieFR8,3 11GE Capital Equipement FinanceFR11,4 12Franfinance LocationFR6,3 13 LfA Förderbank Bayern on behalf of other Landesbanken DE3,8 14KfW (Kreditanstalt für Wiederaufbau)DE76,8 15Buergschaftsbank Northrhine-WestphaliaDE18,0 16K&H BankHU2,4 17Credito Emiliano S.p.A. (CREDEM)IT13,8 18Cassa Depositi e PrestitiIT6,0 19Banca del Mezzogiorno MedioCredito Centrale S.p.A.IT27,5 20Società Regionale di Garanzia Marche SCpAIT15,6 21Crnogorska Komercijalna Banka ADME1,1 22QreditsNL1,6 23Bank Gospodarstwa Krajowego (BGK)PL8,7 24Idea Bank S.A.PL4,7 25Raiffeisen Leasing (RLPL)PL3,2 26Libra Internet Bank S.A.RO3,0 27Slovene Enterprise FundSL8,1 28Nuevo MicroBank S.A.U.ES35,8 29Cersa Compania Espanola de Reafianzamiento S.A.ES29,8 30EZBOB Ltd.UK2,8 31IwocaUK1,4

SME financing supported – Sectors (Dec. 2015) 7 NACE lev.1Final Recipients Sector Code DescriptionNo% AAgriculture, forestry and fishing1.9883,9% BMining and quarrying250,0% CManufacturing4.6189,0% DElectricity, gas, steam and air conditioning supply470,1% EWater supply; sewerage; waste management and remediation activities1390,3% FConstruction ,7% GWholesale and retail trade; repair of motor vehicles and motorcycles ,0% HTransporting and storage2.8585,6% IAccommodation and food service activities ,5% JInformation and communication9241,8% KFinancial and insurance activities3570,7% LReal estate activities6331,2% MProfessional, scientific and technical activities4.9779,7% NAdministrative and support service activities2.5915,1% OPublic administration and defence; compulsory social security10,0% PEducation7941,6% QHuman health and social work activities1.6113,2% RArts, entertainment and recreation9151,8% SOther services activities3.7217,3% TActivities of households as employers; undifferentiated goods - and services - producing activities of households for own use 2310,5% UActivities of extraterritorial organisations and bodies90,0% Total ,0%

SME loans supported by LGF – Size of SMEs 8  More than 93% of SMEs have less than 10 employees

COSME EFG Implementation First EFG transactions signed end of 2015: Investment in 3 multi-stage funds, together with the early-stage equity facility under InnovFin (Horizon 2020); funds established in the Netherlands, Italy and France Investment in 2 expansion and growth stage funds in Germany and Luxembourg Another 4 transactions already approved by the EIF Board of Directors and additional proposal currently under due diligence by the EIF 9

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