InvestEU: The European Investment Fund (EIF) and Avanseo have signed a portfolio guarantee of up to €38 million through its private debt fund (TPE Treso 2) to support microenterprises and natural persons that are experiencing difficulties in accessing credit markets.

• European Investment Fund guarantee will support financing to microenterprises and natural persons experiencing difficulties in accessing credit markets.
• The transaction is backed by InvestEU thematic guarantee “Microfinance, Social and Skills”
• The transaction is supported by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the period 2021-27. 
  
  

The European Investment Fund (EIF) backed by the InvestEU programme has signed a portfolio guarantee with Avanseo to support up to €38 million in new financing for microenterprises and natural persons that experiencing difficulties in accessing credit markets.

“Micro-entrepreneurs make up the backbone of the European economy, but they are also the ones that are hardest hit during difficult economic times. This agreement with Avanseo, backed by the InvestEU programme, is a great example of how digitalisation and technology can be used as tools to channel resources rapidly and more efficiently towards micro-businesses. More than 2000 micro-businesses stand to benefit from this innovative financing all over France,” said EIF Chief Executive Marjut Falkstedt.

“To facilitate access to finance for micro-enterprises has always been our mission,” said Amine Hebri, President of Avanseo, and added: “Our portfolio guarantee with the European Investment Fund fortifies this mission, further empowering small businesses in their journey towards constant growth and resilience.”

Background information

The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Founded in 2017, Avanseo is a microfinance institution with an asset manager license. Since its establishment it has issued more than EUR 15m in loans through its first fund, TPE Treso 1, mainly supporting financial inclusion, fostering individual entrepreneurship or giving a second chance to business owners who had experienced a bankruptcy event in the past. Thanks to the IEU guarantee, Avanseo would be able to: (i) increase its acceptance, (ii) increase its social impact (iii) increase its maturity financing volumes for its second fund. Avanseo is offering a BDS package, including guidance on: (i) Cash management advisory, (ii) Financial best practices observed from peer companies in the sector and (iii) Cost-saving advisory.

Press contacts

European Investment Bank Group: Christophe Alix | M: +33 (0)6 11 81 30 99 | c.alix@eib.org