Imperial Innovations has entered into another loan facility from the European Investment Bank to support Innovations' investments in the UK biotech and life science sector. The £50 million committed loan facility is available for draw down over a period of two years and is repayable over a maximum of nine years following the date of the first draw down.
This follows from a previous loan facility for £30 million from the EIB, agreed in July 2013.
This further funding from the EIB will enable Innovations to increase the rate and scale of its investments in both existing and new portfolio companies, with a particular focus on the therapeutics and medtech sectors. As of 31 January 2015, Innovations' portfolio of companies was valued at £262 million, with medtech and therapeutics representing 79.2% of that value.
Russ Cummings, Chief Executive Officer, Imperial Innovations, said:
"Since securing the first EIB facility in July 2013, the support of the EIB has allowed us to invest more than £62m in early-stage life sciences, across 23 companies, including seven new additions to our portfolio.
"Originally we planned to commit this expenditure over a four year period, but we have been able to execute the plan in only two, by virtue of the increasing maturity of our portfolio, as well as the rich opportunities derived from our extensive network of academics, entrepreneurs, management teams and co-investors within the "Golden Triangle" of London, Oxford and Cambridge.
"To secure a second facility from the EIB is a clear endorsement of the quality, maturity and breadth of our portfolio, as well as our expertise in investing and developing both early-stage and developing businesses."
Jonathan Taylor, European Investment Bank Vice President said:
"Investment in knowledge driven and highly skilled sectors is crucial to strengthen Europe's long-term global competitiveness. The European Investment Bank is committed to supporting investment that harnesses research to create skilled jobs and commercial success.
"Imperial Innovations has set a benchmark for transforming cutting-edge research into some of the UK's most exciting early stage biotech and medtech companies. The European Investment Bank is pleased to again support Imperial Innovations in helping new companies emerge from the world-class research emanating from the UK's life science sector.
"I am confident that this new loan will allow the Group to increase its engagement and ultimately accelerate the translation of outstanding research into new and better treatments and techniques for patients."
The strengthened cooperation between the European Investment Bank and Innovations reflects the EIB's broader engagement to support innovation and research investment across Europe, including in the UK. The new loan is part of the dedicated InnovFin initiative to improve access to finance for research and innovation.
Last year the EIB provided EUR 13.3 billion for investment to support innovation, skills and competitive, including support for spin-off companies and digital networks. EIB has recently started lending under the European Fund for Strategic Investment Initiative expected to support EUR 315 billion of new innovation, infrastructure and SME investment.