Rivage Investment’s EUCLIDES secures €30m backing from European Investment Fund

Rivage Investment’s EUCLIDES secures €30m backing from European Investment Fund

(IN BRIEF) The European Investment Fund (EIF) has invested €30m in the European Climate Debt Solutions Fund (EUCLIDES), an impact investment fund managed by Rivage Investment that will provide growth debt to small and medium-sized businesses specialising in innovative climate solutions across Europe. The fund is expected to offer regular returns and risk diversification to investors through a portfolio of about 40 SME financings. EUCLIDES will provide tailor-made debt instruments such as warrants in order to enhance returns. It is classified as an Article 9 fund under the SFDR, strongly aligned with the EU taxonomy, and will demonstrate strong decarbonisation claims.

(PRESS RELEASE) LUXEMBOURG, 17-Feb-2023 — /EuropaWire/ — The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), supported by InvestEU, is proud to announce its cornerstone investment of EUR 30 million in the European Climate Debt Solutions Fund (EUCLIDES) at its first closing. Managed by Rivage Investment, EUCLIDES will be launched in the first half of 2023 as an innovative impact investment fund dedicated to the fight against climate change.

EUCLIDES will provide growth debt to small and medium-sized enterprises (SMEs) specializing in innovative climate solutions across Europe. These companies will contribute to the reduction of carbon and greenhouse gas emissions by providing physical and/or digital solutions, developing clean transportation, offering clean energy solutions, and using innovative processes or disruptive technologies with low environmental impact. The fund is expected to comply with the InvestEU Gender Criteria by having at least 40% female members on its investment committee.

In order to enhance returns, the fund will provide tailor-made debt instruments such as warrants. The borrowers targeted by the fund are innovative European companies in climate tech with a meaningful track record, revenue, high growth potential, and strong demand for flexible financing to accelerate their development. EUCLIDES will offer regular returns and risk diversification through a portfolio of approximately 40 SME financings, exposure to robust market drivers, geographical diversification, and participation in up-side potential for investors.

EUCLIDES is classified as an Article 9 fund under the SFDR and strongly aligned with the EU taxonomy. 100% of its financing will demonstrate strong decarbonization claims, illustrated by positive avoided greenhouse gas (GHG) emissions at end-user level measured through a transparent methodology. The fund’s underlying investments will predominantly align with the EIF’s criteria for Climate Action and Environmental Sustainability, which are part of the EIB Group Climate Bank Roadmap approved in November 2020.

The EIF’s support for Rivage Investment and EUCLIDES represents a commitment to sustainable investments that contribute to the fight against global warming, the energy transition, climate adaptation, and climate change mitigation. This investment aligns with the EU Green Deal and supports a transition to a climate-neutral economy based on sustainable development, a reduction in dependence on fossil fuels, and the sustainable management of natural resources.

Rivage Investment aims to achieve a first closing of EUR 100 million, including the EIF’s EUR 30 million commitment, in the first half of 2023. The target size of EUCLIDES is EUR 250 million.

EIF Chief Executive Marjut Falkstedt says: “We are very pleased to be contributing to the EUCLIDES fund, using resources from the InvestEU programme. The impact agenda of this fund is perfectly in tune with our policy priorities: It will facilitate access to finance for the cleantech companies that are developing solutions to accelerate the green transition of the European economy, and it will do so in a manner adapted to their particular needs. We are convinced that this new impact fund will play a key role in enabling more climate solutions providers to develop all over Europe, thus making a tangible contribution to the European Green Deal.”

Commissioner for the Economy, Paolo Gentiloni adds: “Securing the green transition will require significant and sustained investment. InvestEU can play an important role in mobilizing this investment. This agreement represents another important step in that effort, supporting the contribution of innovative European businesses to our joint climate goals.”

Hervé Besnard, founder and CEO of Rivage Investment comments: “By providing growth debt to European corporate deploying solutions aiming at reducing GHG emissions, EUCLIDES accelerates the deployment of efficient technologies, generating a significant positive impact on greenhouse gas emissions and climate change. This new fund is a well-suited instrument for investors to be rewarded for their positive impact.”

Background information

About European Investment Fund

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance and venture capital. The EIF is also active in supporting climate fund investments and infrastructure with a strong focus on environmental sustainability. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term financing by mobilizing significant public and private funds to support a sustainable recovery. It helps generate additional investments in line with key European priorities, such as the European Green Deal, the digital transition and support for SMEs. The InvestEU programme brings together a multitude of EU financial tools to support investment by making project financing simpler, more efficient and more flexible. The programme has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented via various financial partners. They will invest in projects by using the EU budget guarantee of €26.2 billion to mobilise at least €372 billion in additional investments.

About Rivage Investment

Rivage Investment is an asset manager based in Paris with ca. €8 billion under management. Rivage Investment is a leading actor in the financing of European infrastructures. It finances infrastructure companies, local authorities and assets through different private debt strategies with different risk/return profiles and maturities from long term financing to bridge financing for portfolios of renewable energy projects under development. For the last 10 years Rivage Investment has been providing over 100 financings across various infrastructure sub-sectors and countries in Europe. Rivage Investment’s commitment to Net Zero through funding of corporates offering decarbonisation solutions for existing assets and building infrastructures of tomorrow is at the heart of the company’s strategy.

Press contacts

EIF: Christophe Alix, c.alix @bei.org, Tel.: +352 43 79 84303 / Mobile: +33 6 11 81 30 99
Website: www.eif.org – Press Office: +352 4379 21000 – press@eib.org  – Follow us on Twitter

Rivage Investment: Patrick Raffard, patrick.raffard@rivageinvestment.com, Tel: +33 6 15 02 50 34
Website: www.rivageinvestment.com

SOURCE: European Investment Fund