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First RSI guarantee agreement in Ireland for innovative businesses
The European Investment Fund (EIF) and Allied Irish Banks (AIB) signed the first guarantee agreement in Ireland on 28th November to support lending to small and medium-sized enterprises (SMEs) under the Risk Sharing Instrument (RSI). This is an important development in recognising Ireland ’s place as a global innovation hub producing world beating technologies taken to market by ambitious entrepreneurs skilled in growing businesses trading internationally. It is a joint initiative of the European Investment Bank Group and the European Commission.
AIB will now offer up to EUR 80 million of new loans to innovative companies over the next two years, enabling export and innovation led SMEs to gain easier access to debt finance.
Speaking at the signature ceremony in Ireland on 28th November, EIF Chief Executive Richard Pelly said: “I am pleased to be signing our first agreement in Ireland under the new Risk Sharing Instrument (RSI) in support of innovative small and medium sized enterprises. Through the provision of a 50% guarantee, EIF will be helping AIB, a major commercial bank and SME player in the country, to channel much needed finance efficiently to high tech innovative businesses.”
AIB's Chief Executive, David Duffy said: “I am delighted to be partnering with the EIF and EIB on this initiative which fits very well with our overall SME strategy. AIB is keen to partner with knowledge based businesses seeking capital to build sustainable competitive advantage and accelerate growth in international markets. By improving access to loan finance to accelerate export led businesses in Ireland , we believe it will serve to stimulate credit demand in this economic environment.”
Some Guidelines on this initiative:
- The minimum loan amount is €300,000 and the max. is €7.5m.
- The term of the loan can range from two to seven years.
- The interest rate charged will be determined on a case by case basis and will depend on the nature of the company.
- To apply please just contact your nearest AIB Commercial Centre or the AIB Emerging Sectors Unit.
- The loan facility cannot not be a restructure or substitution of existing facilities within AIB.
- AIB will evaluate each case on its own merits including an appraisal of the risk profile of the business applicant. As this is a risk sharing instrument, the guarantee is designed to act as a catalyst for increased lending and in turn foster innovation and job creation.
Lending criteria, terms and conditions apply. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland .