ICF Group arranges €180 million in loans in the first half of the year

The ICF Group is continuing to drive financing and investment in Catalonia’s business community. In the first half of 2022, the ICF has provided loans and guarantees to 234 self-employed individuals, SMEs, companies and organisations for a total amount of €179.8 million. This volume of business was made up of 308 transactions which have helped to maintain and create 11,342 jobs.

As for venture capital operations, the institution has committed €19 million in third-party manager funds. Specifically, €15 million was invested in Suma Capital’s sustainable infrastructure fund and €4 million in Bonsai Partners’ new Bonsai Partners II fund. In terms of direct investment, €4.5 million has been injected through the institution’s own venture capital funds and three start-ups have been backed with equity loans worth €200,000 each.

Jordi Òliva, the ICF’s CEO, announced the results at a press conference held at the ICF’s headquarters. “The volume of loans and guarantees is very similar to the same period last year when it stood at €185.6 million,” he noted. “However, we have seen significant growth in commitments in external venture capital funds as a result of the resumption of projects put on hold by the pandemic. In the first half of 2021, we committed €7.1 million, a figure which this year has gone up to €19 million.”

Investment and working capital funding

The types of projects financed include investment to expand production capacity, acquire new equipment and roll out more cutting-edge and efficient technology coupled with loans to fund the running costs and current needs of businesses and organisations.

Almost 70% of the total amount has been arranged through ICF Crèdit and ICF Eurocrèdit, the institution’s general funding facilities. “€34.2 million, 19% of total business activity, has been channelled through these credits which are co-financed by the EU’s European Regional Development Fund,” said Òliva. “This is one of the facilities we have made available to businesses to address the supply and raw materials crisis.”

Social housing financing has remained a strategic priority in the ICF’s operations during the first half of the year. “A total of 62 transactions have been arranged, 20% of the total, to help community organisations and local councils buy flats for social renting,” pointed out Òliva.

By business segments, 79.4% of the funding went to the self-employed and SMEs. In terms of sectors, manufacturing picked up the most at €42.9 million, followed by retail, tourism and transport at €36.2 million and construction and public works projects at €35.5 million.

Funding has been evenly spread across Catalonia in line with GDP figures. Barcelona and its area of influence account for most of it at 55.1% of the total allocated. It is followed by Lleida (9.4%), Central Catalonia (7.5%), Tarragona (7.3%) and Girona (7.2%).

In line with its role as a public bank, the institution has also supported companies by restructuring existing transactions. Loans worth €52.3 million have been restructured, 5.6% less than in the same period last year. “The NPL ratio is under control and we have a good level of provisions and so we can help enterprises which need to make their payment schedule more flexible.”

Backing the business community

During the press conference, Òliva underlined “the ICF’s role in unlocking strategic projects for the Catalan economy, channelling European funds and building a flagship investment and entrepreneurial ecosystem.”

The institution is working on a new strategic plan featuring a roadmap up to 2025. “The plan will set out the ICF’s main targets in driving companies’ growth and innovation, the transition towards a sustainable model and the commitment to projects with a constructive social impact,” commented Òliva.

The ICF expects to close the year with business volumes similar to 2021.

Financial indicators: Balance sheet and results

In venture capital, investment in external fund managers had a cumulative return standing at €16.8 million, up from €7.45 million in the first half of last year. Dividends accounted for €3 million of the total volume earned.

At the end of the first half of 2022, the ICF recorded €11.1 million in net income. In terms of the other financial indicators, the ICF has a solvency ratio (40.1%) and an NPL coverage ratio (139.8%) well above the minimum required by credit institution regulations and the sector average. The NPL ratio stands at 7.2%.