BIO uses a series of financial instruments designed to expand already existing organisations or to help companies to set up in business and which can be adapted according to requirements and the local situation. This financing can be in Euros or in US dollars but also in local currency, on a case by case basis.
Equity and quasi-equity stake
New companies or those who wish to expand their activities or strengthen their financial base can benefit from BIO's support in the form of an equity stake. BIO always takes a minority stake, generally tied to a seat on the Board of Directors, intended to be ceded to other shareholders, third parties or on the financial market once the company has reached a sustainable maturity level. BIO also uses quasi-equity (mezzanine capital, subordinated loans, convertible loans, etc.) to strengthen the financial resources of up-and-coming companies, without diluting the position of its shareholders.
BIO offers a wide range of direct medium- and long-term loans at both fixed and variable rates. Their term can vary between 3 and 10 years, with a grace period of 3 years maximum.
BIO’s signature is a guarantee of solvability and facilitates the mobilisation of resources by private sector borrowers by guaranteeing certain obligations on their behalf.
BIO can finance projects in local currency in order to reduce the risks linked to exchange rates and interest rates for its clients.
The ATHENA Facility is the result of a partnership between BIO and the CDE which aims to facilitate access for SMEs to financial resources, through an approach which combines the development of skills and access to credit. BIO has reserved a total of EUR 3 million for financing purposes and EUR 300,000 for technical assistance. The analysis, support and local follow-up of companies, which allows investments to be monitored in order to reduce risks, are carried out by the CDE.