The National Credit and Investment Institution (Société nationale de crédit et d’investissement, SNCI) continues to serve as a public-law banking establishment. The SNCI, which specialises in medium- and long-term financing for businesses established in the Grand Duchy, has gradually increased its investments, from 22.1 million euros in 2014, to 100.6 million euros in 2015, and now to 177 million euros in the last financial year.
Growing demand from businesses for the new instruments
According to the forecasts put forward by the SNCI, the overall amount of loans granted during 2016 reached 13.2 million euros, while holdings amounted to 163.2 million euros. This is above all the result of three new financial products launched in 2015, for which there has been growing demand.
And it's not surprising. These three new types of loan were set up to better address the needs of SMBs and to accompany them in their efforts in terms of innovation, development, and research. The sum of 3.8 million euros granted in loans is evidence that these new products have filled a gap in the range of financing instruments available to businesses in the Grand Duchy.
Here is a brief presentation of the products:
- The Indirect Development Loan (Prêt Indirect Développement, PID) is intended for funding a specific development project with up to 10 million euros - expanding a range of products or a client base, for example;
- The Research, Development & Innovation Loan (Prêt Recherche, Développement & Innovation), capped at 250,000 euros per project, is intended to support SMBs in their efforts in terms of research and innovation;
- The Innovating Businesses Loan (Prêt Entreprises Novatrices) is a financial instrument for innovating SMBs that are less than eight years old. The SNCI invests up to 1.5 million euros in financing a business plan behind a development project or in financing part of the cost of the commercial launch.
These new products, together with the SNCI's other instruments, thus offer a coherent set of instruments suited to the market in the Grand Duchy.
But the SNCI offers more than just financial support for businesses already established in the Grand Duchy. Together with theEuropean Investment Fund (EIF), the SNCI has launched the Luxembourg Future Fund, the aim of which is to attract to the Grand Duchy innovating SMBs in a wide range of technology sectors, including ICTs, cyber-security, FinTech and CleanTech. The Fund has 150 million euros to allocate over a five-year period; it is funded mainly by the SNCI (120 million euros).
(article written by the editorial team of the portal luxembourg.lu)