In late 2014 the SBCI put in place three initial sources of long term, lower cost funding to support its SME financing objective. Funding agreements totaling €790 million have been put in place with the European Investment Bank (EIB), Kreditanstalt für Wiederaufbau (KfW) and the Ireland Strategic Investment Fund (ISIF).

European Investment Bank - €400m

The European Investment Bank (EIB) is the European Union’s bank, supporting both credit and equity market failures across Europe. A key priority of the EIB’s mandate is to provide financing and enhance access to finance for the European Small and Medium Enterprise community. Provision of funding to the SBCI has been under this objective of SME financing support.

Kreditanstalt fur Wiederaufbau - €150m

KfW is the German state promotional bank, with a strong and respected brand in capital markets providing it with stable low cost access to long term fi nancing. KfW’s primary mandate is to support and develop its own domestic retail, commercial and corporate base. KfW uses an on-lender model utilising local banks to deliver this mandate through its product range and enhancements to competition in the markets. Additionally, KfW also provides its longer-term lower cost funding to other EU states through their respective promotional institutions such as the SBCI, to support their complementary mandates.

Ireland Strategic Investment Fund - €240m

The Ireland Strategic Investment Fund (ISIF) was established in December 2014 to invest on a commercial Reserve Fund (NPRF) - the ISIF’s predecessor fund - transferred to the ISIF. Funding has been provided to the SBCI on foot of a direction from the Minister for Finance to the NPRF. The ISIF funding is a ten-year revolving facility.

Equity Financing

The SBCI has issued shares to the Minister for Finance to the value of €10 million. If the SBCI decides that in order to meet its financial obligations further equity is required, it may issue further shares to the Minister up to a value not exceeding the authorised share capital of the SBCI of €250 million. Payment for such shares may come from the Central Fund or from conversion of the ISIF loan into equity or from both sources.

The SBCI is currently in negotiations with other funding institutions with a view to broadening its funder base and to access additional low cost funding.