INSTITUICAO FINANCEIRA DE DESENVOLVIMENTO

Instituição Financeira de Desenvolvimento, Portugal

Instituição Financeira de Desenvolvimento (IFD)

general information

IFD is the Portuguese promotional institution. It was incorporated in 2014 by the Portuguese State under the approval of the European Commission with the objective of improving the access to funding by local SME and midcaps. Its financing activities are exclusively wholesale and cover the full capital structure, notably through senior loans, quasi-equity and equity, and credit counter-guarantees. The creditworthiness of IFD is of local sovereign quality based on sound prudential ratios and an implicit sovereign guarantee.

activities

IFD operates both through its balance sheet, e.g. on-lending to commercial banks, and off-balance sheet through 3 funds-of-funds under its management (€534 million). One of these funds is dedicated to loans and credit guarantees, the other two are dedicated to equity investments, under a number of sub-products and fund calls, notably in i) business angels investment firms (3 calls), ii) seed and early-stage venture funds (2 calls), and iii) private equity funds focused in Portugal (1 call). The sources of funding of these equity funds are of two types: national budget and ESIF.

Cooperation with EU Institutions

Within the scope of its relationship with multilateral financial institutions, IFD obtained a financing line from the Council of Europe Development Bank (CEB) for € 100 million to finance SMEs. However, it has been with the European Investment Bank Group that most initiatives have been implemented. Examples of this are the approval of long-term lines of financing worth € 350 million, the Portugal Tech partnership between IFD and the European Investment Fund, to capitalize technology-based companies; the election of IFD to be part of the select group of 10 institutions that make up the Consultative Forum of the EIF Equity Platform, a forum accessing and sharing information on financial capital instruments operated by the EIF in partnership with other National Promotional Institutions under the aegis of the European Commission. IFD also entered into a Memorandum of Understanding with the European Investment Advisory Hub, to strengthen the investment environment and improve the quality of investment projects promoted by Portuguese companies.

Network of Financial Intermediaries

Since its inception, IFD worked on building a network of financial intermediaries by selecting, through open, transparent and competitive procurement procedures 15 venture capital funds, 59 business angels companies, the National Mutual Guarantee Scheme and 14 credit institutions.

contact

Helena Mouta

Avenida Fernão de Magalhães, nº 1862, 9
4350-158 Porto, Portugal
Tel: +351 222 452 026
E-mail: helena.mouta@ifd.pt
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