Hungarian Development Bank Financial instruments related to Thematic objective 4 in Hungary Ildikó Zátrok, Head of Department 22/05/2017 www.mfb.hu MFB Zrt. Minden jog jog fenntartva 2017. 2014. május 21. Calibri Bold 10 pt (RGB: 75 75 77)
MFB Ownership control Minister of National Development State Secretary for Postal Affairs and National Financial Services Exercising ownership rights over MFB MFB Chairman of the Board of Directors and Chief Executive Officer 2
MFB Highlights of the current activities Centre of Economic Development Lending Equity investment Guarantee Debt management EU fund transmission Strategic role in the development of Hungarian Economy Projects with national economic importance Key role in distribution of European Union s funds Centre of economic development Owner: Hungarian State Financing economic development aims of Government Supporting anti-cyclical economic policy Advantaged experience and financing ability Ensure sources for medium- and long term developments Chinese relationships in focus, e.g. BBCA Group, Szolnok Fund of Funds Handling ~ EUR 3,4 billion EU Funds MFB Points - sales channels with 442 branches 3
MFB An economic development center with extensive financing tools Hungarian Debt Management Ltd. Individual transactions Capital investment Guarantee Student loan Debt management LOAN, EQUITY, GUARANTEE, DEBT MANAGEMENT FUND OF FUNDS EXECUTIVE BODY EU fund transmission Venture capital programs 4
MFB strategic goals are identifying and covering market failures GOALS 1. Financing market shortage 2. Delivery of additional resources into the economy: ~EUR 1,3 billion/year 3. Generate additional GDP (0,6-1,5%) TASKS New target segments Micro, small and medium enterprises Project companies Special large transactions Local governments Citizens Changes in service content Long-term lending Capital Guarantee Advice Sales channels MFB Point network Commercial banks Specific partnerships Online developments Group-level organization Fulfillment of EU conditions Harmonized group-operation Unified service portfolio 5
Key role in distribution of European Union s funds System of the European Union Sources (2014-2020) EU and domestic sources ~EUR 29 billion Economic Development and Innovation (GINOP+VEKOP) ~EUR 9,8 billion Repayable and nonrepayable funds ~EUR 3,4 billion* Loan Combined loan Venture Capital ~EUR 937 million ~EUR 1,9 billion ~EUR 580 million * Non-refundable resources of the combined products managed by the Ministry of National Economy in cooperation with MFB. The total allocation contains ~EUR 2,3 billion of financial Instrument source. 6
MFB plays a key role in national economic development More than EUR 3,4 billion loan, combined loan and venture capital product Final recipients Final recipients Venture Capital ~EUR 580 million Loan ~EUR 937 million Combined Loan ~EUR 1,9 billion Network of MFB Points MFB Fund of Funds executive institution Specific policy Ministries Managing authority Ministry for National Economy Development of economy, innovation: ~ EUR 9,8 billion 7
We build the largest distribution network in Hungary with network of MFB Points ~3.000 Bank branches in Hungary 442 200 Available at MFB Points: 7 independent loans 9 combined loans Institutional Credit Partners branch network in 400 settlements SME lending experienced professionals Product independent channels Supports domestic SME sector developments www.mfbpont.hu 8
Procedure structure of the financial instruments providing loans in the 2014-2020 programming period Managing Authority Ministry for National Economy Ministry of National Development Thematic policy responsibles MFB Hungarian Development Bank Ltd. The body implementing the fund of funds MFB points Financial intermediaries Final recipients 9
Thematic objectives (FI) TO 1. TO 2. TO 3. TO 4. TO 8. Strengthening research, technological development and innovation (GINOP, VEKOP) Enhancing access to, and use and quality of ICT (GINOP) Enhancing the competitiveness of SMEs (GINOP, VEKOP) Supporting the shift towards a low-carbon economy in all sectors (GINOP, VEKOP) Promoting sustainable and quality employment and supporting labour mobility (GINOP) 10
Programming Period 2014-2020 - Financial instruments : GINOP + VEKOP SME 700 m EUR R&D&I 632 m EUR ICT 293 m EUR Low-carbon economy 567 m EUR Employment 96 m EUR Promoting entrepreneurship Supporting the capacity of SMEs to grow in regional, national and international market, and to engage in innovation processes Enhancing R&I infrastructure and capacities to develop R&I excellence, and promoting centres of competence, in particular those of European interest. Developing ICT products and services, e-commerce, and enhancing demand for ICT Extending broadband deployment Supporting energy efficiency, smart energy management and renewable energy use in public infrastructure and in the housing sector. Promoting the production and distribution of energy derived from renewable sources. Supporting the development of business incubators and investment support for selfemployment, microenterprises and business creation. Financial instruments 8. Pénzügyi (GINOP eszközök + VEKOP) 729,7 Mrd Ft 2 287 m EUR 11
Supporting the shift towards a low-carbon economy in all sectors (TO 4) Main objectives: Developing enterprises' energy efficiency Increasing renewable energy production Improving energy efficiency of households and public buildings Main expected impacts (OP level): Additional capacity of renewable energy production Number of households with improved energy consumption classification Estimated annual decrease of GHG GINOP VEKOP 523 MW 24 MW 21 853 households 2 324 households 789 845 tonnes of CO2eq 30 474 tonnes of CO2eq 12
Combined loan products (FI combined with grant) Budget Improving energy efficiency of SMEs buildings with the use of renewable energy Call announcement 12/07/2016 Start of submission 03/16/2017 Final recipients Main objectives Financing structure Interest rate Term Currency GINOP-4.1.1-8.4.4-16 Grant: HUF 59,45 billion Loan: HUF 32,08 billion SMEs Amount of private contribution Minimum 10% Amount of grant Amount of loan Maximum ratio of grant Improving energy efficiency Using renewable energy Minimum HUF 3 million, maximum HUF 50 million VEKOP-5.1.1-5.1.2-16 Grant: HUF 5,88 billion Loan: HUF 5,88 billion Minimum HUF 3 million, maximum HUF 50 million The amount of the loan must exceed the amount of the grant 45% of the eligible costs 2% p.a. Maximum 10 years HUF 13
Loan products (FI) Energy loan for SMEs Budget HUF 30 billion Call announcement 12/07/2016 Start of submission 02/28/2017 Final recipients SMEs GINOP-8.4.1/B-16 Main objectives Financing structure Interest rate Term Currency Amount of private contribution Minimum 10% Amount of loan Electricity generation for network production with the use of renewable energy sources (with the exception of wind energy) Minimum HUF 1 million, maximum HUF 1 000 million 0% p.a. Maximum 15 years HUF 14
Loan products (FI) Improving energy efficiency in the housing sector GINOP-8.4.1/A-17 Budget HUF 105,2 billion HUF 9,41 billion Final recipients Main objectives Financing structure Interest rate Term Currency Amount of private contribution Amount of loan Natural persons, multi-apartmant buildings Energy renovation of residential buildings Improving energy efficiency Using renewable energy Minimum 10% VEKOP-5.2.1-17 Natural persons: minimum HUF 0,5 million, maximum HUF 10 million Multi-apartmant buildings: minimum HUF 0,5 million, maximum HUF 7 million per apartment 0% p.a. Maximum 20 years HUF 15
Thank you for your attention! 16