The EU bank

RSFF is based on an innovative idea of leveraging Community Budget funds available under the Seventh Community Framework Programme (FP7) through EIB financing.

The European Community will allocate up to EUR 1bn of funds available under the Seventh Framework Programme (2007-2013) to RSFF. In parallel, the EIB is contributing up to EUR 1bn from its own resources. Together, these funds will be used to back up financing operations with a higher risk profile than the average EIB lending portfolio. Given that each EUR of FP7 and EIB contribution to RSFF will, on average, translate into 5 EUR of RSFF loans and guarantees, RSFF will increase the overall capacity of the EIB to finance higher-risk, yet creditworthy, Research, Development and Innovation (RDI) projects by up to EUR 10bn.

Under RSFF, the EIB will open new ways to add value:

• By providing long-term financing with potentially subordination elements (financing ranking behind debt provided by senior lenders), the EIB can strengthen the promoter's financial profile, thereby increasing his capacity to attract additional funding for his investments.
• Risk sharing with the banking sector will alleviate existing risk management related lending constraints, boosting the financial community's overall capacity to support RDI activities particularly in the area of Small and Medium sized Enterprises. In this respect, the Risk Sharing Instrument for innovative and research oriented SMEs and small midcaps (RSI Facility), a new portfolio guarantee product, under RSFF, is an important tool.
• RSFF will enhance the Bank's ability to develop new financial products in order to overcome the market's weakness to cover the requirements of the targeted sectors and promoters.