Capacity Building Investment Product
The InvestEU Capacity Building Investment Product aims to support the EU's emerging microfinance & social entrepreneurship and skills & education ecosystems.
The purpose of the EIF's Capacity Building Investment (CBI) Product is to build up the institutional capacity of Financial Intermediaries that have not yet reached sustainability (including Greenfield Financial Intermediaries) or that are in need of risk capital to sustain their growth and development in the microfinance, social entrepreneurship or the skills and education space.
The Target Areas
A CBI Operation can be concluded with any Financial Intermediary operating in the microfinance, social enterprise finance and/or skills, education and training finance spaces that is able to provide financing to and/or is serving the Target Areas of microfinance, social entrepreneurship and skills, education and training.
Skills, education & training
Eligible Financial Intermediaries
The CBI Product is available to any Financial Intermediary operating in the microfinance, social enterprise finance and/or skills, education and training finance spaces that is able to provide financing to (or otherwise serves) the Target Areas of Microfinance, Social and Skills Guarantee.
Financial Intermediaries must also be established and operating in any Member States of the EU or OCT (Overseas Country or Territory). Including but not limited to:
Non-bank financial institutions
Loan and/or investment funds
Education & training providers
Under the InvestEU Capacity Building Investment Product, the EIF shall support dedicated investments in selected Financial Intermediaries - mainly in the form of subordinated loans - for the following purposes
Investment in organisational development and expansion of the Financial Intermediary, including branch expansion, scaling-up or building up of IT infrastructure (e.g. mobile banking, etc.), investment in human resources such as recruitment and training of staff
Strengthening operational and institutional capabilities aiming at contributing to the sustainability of the Financial Intermediary, including Greenfield Institutions; this includes, inter alia, investments in working capital and in improving the strategic/governance capabilities of the Financial Intermediary in order to maintain a sustainable business with a social performance focus
Institutional capacity building to increase the indebtedness capacity of Financial Intermediaries while supporting them to retain a balanced socio-commercial profile
An important feature of your Expression of Interest will be your project proposal. Here are some features which we will be looking for:
Give a detailed description of the project and related implementation strategy, including:
- Purpose of the Project & your institutional need for it
- Expected timeline of implementation
- Capability to attract additional funding resources for your project or based on your project
Provide an overview of your market experience including:
- Your type of intervention and/or support towards the specific Target Areas
- Your past experience in cooperating with International Financial Institutions (IFIs)
Describe how you foresee to make a positive impact on the market via your CBI Project, including:
- Balance Sheet / Profile & Loss of your institution
- Impact on targeted final recipients