A European fund to support the circular bioeconomy

The European Commission and the European Investment Bank (EIB) have announced the completion of the public procurement process for the selection of an investment advisor to set up and manage the European Circular Bioeconomy Fund (ECBF). The selected investment advisor is ECBF Management GmbH and Hauck & Aufhäuser Fund Services S.A. will act as the Alternative Investment Fund Manager.

The new fund will provide access to finance – in the form of equity, debt or quasi-equity – to innovative circular bioeconomy companies and projects of various sizes. ECBF Management will raise funds from public and private investors with a target fund volume of EUR 250 million and aims for the first close in Q1 2020. A proposal for the EIB to invest up to EUR 100 million in the fund will be submitted to the EIB’s Board of Directors for approval. This investment will be backed by a guarantee from InnovFin – EU finance for Innovators, an initiative of the EIB Group and the European Commission to facilitate access to finance for innovation and research through a wide range of financing tools and advisory services.

Andrew McDowell, EIB Vice-President responsible for agriculture and bioeconomy, said: “Using renewable biological resources to produce our goods and energy is essential to transition to a circular economy and reduce our reliance on fossil fuels. With the launch of the European Circular Bioeconomy Fund, we have reached an important milestone to ensure that groundbreaking projects in the sector get the financing they need.”

The creation of such a fund was recommended after a financing gap in the bioeconomy sector was identified.

Original source: EIB
Published on 29 November 2019