The ICF Group has continued to champion the financing of companies, entrepreneurs and entities in order to contribute to the growth, innovation and sustainability of the Catalan economy. In particular, during 2019, funding was granted to 1,564 companies and self-employed workers for 662.3 million euros, representing a rise of 10.5% on the same period last year. The amount of 551.2 million euros of this total was formalised through the ICF and 151.1 million euros through Avalis de Catalunya.
In line with the results of other years, 97% of funded projects have been allocated to the self-employed and SMEs. Overall, the credit volume granted by the ICF Group in 2019 has enabled almost 77,000 jobs to be created and/or maintained.
The institute's Chief Executive Officer, Josep-Ramon Sanromà, stressed that "beyond the large figures, we have promoted the innovation, transformation and digitalisation of the economic fabric, as well as investments to champion business growth".
Sanromà also stated that "in parallel, we have continued to foster projects with a positive impact on society and the environment, aware that this economic growth must be – at the same time and compulsorily – sustainable and in accordance with the Sustainable Development Goals (SDGs) and the United Nations Agenda 2030".
In line with the strategic objectives of the Catalan economy, the ICF Group has focused its activity on three core areas: funding the growth of SMEs and business innovation; investing in Catalonia's entrepreneurial ecosystem and providing financial support to social projects and entities that drive the sustainability of the economy.
In order to boost the growth of SMEs, the ICF has ICF Eurocrèdit loans, co-financed with ERDF funds, among others. During 2019, this facility has enabled 149 business projects to be funded, amounting to 67 million euros. Furthermore, the institute launched a new funding facility, together with Avalis de Catalunya, to drive the growth of SMEs.
As regards society and the environment, the ICF has upheld its commitment to promote social rental housing, funding 174 projects for an amount of almost 19 million euros in order to facilitate the construction or rental of apartments for groups at risk of exclusion. Entities such as Hàbitat 3, Fundació Privada Foment de l’Habitatge Social and Fundació Mambré are some of those that have received this funding. In line with its strategic axes and commitment to the SDGs, the ICF has also provided more than 51 million euros to foster environmentally friendly projects.
As regards regional distribution, and in line with the economic weight on the Catalan GDP, Barcelona and its area of influence host 72% of the formalised volume of funds. In relation to sector distribution, trade, tourism, transport, and industry have been the main recipients of ICF Group credit, amounting to 31% and 22% of the total credit volume, respectively. The increase in funding to health and social services is particularly noteworthy, increasing from 8 million euros in 2018 to more than 25 million euros in 2019.
Investment in venture capital
In the area of venture capital, "the institute has significantly boosted its investment through investment funds in order to encourage the creation, innovation and growth of companies", stated Sanromà.
Specifically, in 2019, it has committed 138.4 million euros in venture capital funds, chiefly to the digital and life science sectors. This total amount is distributed as follows: 53.4 million euros invested in various funds managed by other independent managers (this figure was 15.3 million euros in 2018), 70 million euros in the two new venture capital funds managed by ICF Capital and 15 million euros in the EIF fund in order to invest in the growth of Catalan companies.
The ICF currently invests in 48 venture capital instruments, with an accumulated 318.6 million euros of investment commitments. This amount, together with 2,645 million euros committed by other investors, reaches a figure of almost 2,963 million euros of investment capacity. “In the area of venture capital we have a 9.3 multiplying effect" stated Sanromà.
The ICF launched two new venture capital funds during the second half of 2019. Firstly, ICF Capital Expansió II, with an allocated 50 million euros to invest in growth projects and, secondly, ICF Venture Tech II, with an allocated 20 million euros and intended for technology and innovation companies with high potential for growth. In total, 6 million euros have been invested in six companies.
The ICF supports start-ups and innovation through the IFEM (Financial Instruments for Innovative Companies) innovation line. During 2019, along with other private investors it has co-invested in 19 start-ups in the bio and health sector, services and ICT, for an amount of 3.6 million euros. Together with 8.5 million euros committed by other investors, the initiative reaches a figure of almost 12 million euros of investment capacity.
Financial indicators: Balance sheet and results
The ICF has closed 2019 with net profit of 29.2 million euros, which will be wholly allocated to reserves, thus, consolidating a 9-year cycle of positive results, which have enabled it to allocate 98.7 million euros to reserves and improve the institution's solvency.
In terms of the other financial indicators, the ICF has a solvency ratio of 47.3% and an NPL coverage ratio of 149.2%, both of which are broadly above the minimum required by the regulations on credit institutions and the industry average. The NPL ratio stands at 6.6%.
About the ICF
The ICF is the public financial entity of Catalonia. It has as a main mission to promote the funding of the entrepreneurial fabric in Catalonia in order to contribute to the growth, the innovation and the sustainability of the Catalan economy. In this sense, it commits itself actively to the achievement of the Objectives of Sustainable Development in accordance to the Agenda 2030 of the United Nations.
The ICF acts as complement of the private financial sector, offering an extense range|gamma of solutions of funding centered on loans, guarantees and investment in venture capital. Since 2014 it is a member of the European Association of Public Banks|Benches (EAPB), that he|she groups big part of the banks|benches and the public financial entities that work in Europe.
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