Corporate Finance & Capital Markets

Therefore, grants and subsidised financing should be a part of any structured financing model.

Because smart money is grant money.

In Romania, but also in Germany, Austria, Italy and the other EU member states, parallel to purely commercial financing of investment and working capital, a distinct system of grants and subsidies is also available. SME’s are generally preferred, but especially in Romania (and Bulgaria), large companies are also heavily supported.

Grants are (primarily in Romania) allocated over non-repayable subsidies. Private companies in Romania can have up to 70% of their eligible costs subsidised. Some public beneficiaries can even receive up to 100%.
In the “old” EU member states, subsidies - along with grants - are also issued in the form of

• Interest subsidy and debt financing at better conditions
• Guarantees and liability
• Public equity capital (similar to PE/VC/Mezzanine)

As a first step, a potential beneficiary - whether a private company or public institution/agency - must first find a clear path through the jungle of subsidy finance. Then, after identifying a range of possible problem areas, the requirements of the various grant and subsidy financing sources must be carried over into an integrated concept which can subsequently be implemented.

Especially in Romania, the issue of subsidised funds is a complex and costly process, at the core of which stands project eligibility. Eligibility is the criteria for which the issuing of financial support is decisive, and which is judged by means of a catalogue of several associated evaluation criteria. It is up to the beneficiary, whether private or public, to demonstrate the eligibility of his/her project(s) in the best possible way, thereby maximising the chances for successful procurement of grant capital.

Subsidisable and grant-eligible subjects are

• Investments
• Training and continued education
• Research and development
• Expansion and internationalisation
• Alternative energies and energy efficiency
• Environment

GCI is able to quickly determine the eligibility of your project, and can give you a realistic estimate of cost and potential grant benefit. You decide “GO” or “NO GO”. We support you in conception and implementation of financial support instruments applicable and useful to your specific situation. Together with you we develop the required documentation, accompany you in carrying out submittal/negotiation. This is how we secure the optimal grant/subsidy structure for our clients.