Israel’s Bank Leumi and the European Investment Fund Renew Tech Loan Program
Under the new program, Leumi can offer up to $200 million in financing to tech companies in Israel
13:59
13.12.17
Israel’s Bank Leumi and the European Investment Fund (EIF) announced Wednesday a renewal of a program to offer loans to small and medium tech companies in Israel.
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Under the new agreement, LeumiTech, a technology-focused subsidiary of Israel's second largest bank, can offer financing of up to $200 million, a $100 million increase over the original initiative, with EIF providing a guarantee for the funds as part of Horizon 2020, the European Union’s research and innovation program.
Koby Haber, head of Leumi’s corporate and commercial division. Photo: Amit Sha'alצילום: עמית שעל
The program targets companies with fewer than 500 employees, offering financing under favorable conditions to fund research and development activities. Up to $8 million in credit is available for each company accepted into the program.
Over the past year, 36 deals worth a total of $55 million were completed, Bank Leumi said in a statement, adding that dozens of new deals are currently in the pipeline. Some of the companies to receive financing through the program include Infinidat Ltd., a data storage company; Celeno Communications Ltd., which develops chips for Wi-Fi sets; and Highcon, the maker of a digital cutting and creasing printer.
“The continuation of this program will allow more and more startups and innovation-promoting companies to enjoy especially attractive funding terms, as well as to continue the growth momentum and the development of Israeli innovation and the positioning of our local high-tech industry as the spearhead of world innovation,” Koby Haber, head of Leumi’s corporate and commercial division, said in a statement.
