We analyse the main data on Cofides, the state-owned commercial company for the financing of private investment projects abroad. In addition, we review the requirements for a project to be eligible and study the most important Cofides operations in recent years.

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About Cofides

Established in 1988, Cofides (Compañía Española de Financiación del Desarrollo) is a state-owned commercial company whose objective is to provide medium and long-term financing for viable private investment projects abroad in which there is a Spanish interest in order to contribute, with profitability criteria, both to the development of the countries receiving the investments and to the internationalisation of the Spanish economy and Spanish companies.

To support these international projects, Cofides uses two financing instruments, depending on the type of project:

• Cofides' own resources, to finance investment projects in emerging or developing countries.
• Funds FIEX and FONPYMEon behalf of the State (State Secretariat for TradeThe Ministry of Economy, Industry and Competitiveness), to finance investment projects abroad irrespective of the level of development of the country of destination.

Among the aid offered by the company, we find programmes such as Pyme Invierte and sector financing lines (FINTUR, FINTEC, FINMARCA...) and country financing lines (Australia Line, Morocco Line, Mexico Line, Russia Line...).

In total, Cofides' resource mobilisation capacity amounts to €2.5 billion.

It always operates on a risk-sharing basis: the private investor and the company, which offers capital to invest abroad, jointly provide a certain volume of resources for a project-related investment. Through the financial products offered, it can contribute financially, in principle, between €75,000 and €30M per project.

Its share capital includes the following companies and institutions:

• ICEX Spain Export and Investment
• Official Credit Institute (ICO)
• National Innovation Company (ENISA)
• Banco Bilbao Vizcaya Argentaria (BBVA)
• Banco Santander
• Banco de Sabadell
• Banco Popular
• CAF-Development Bank of Latin America

Cofides is also a founding member of EDFIIt is an association of 15 bilateral funding institutions in developing countries and is an active member of the Spanish Global Compact Network.

Projects eligible for Cofides

Cofides financing is available to both joint ventures and subsidiaries of Spanish companies in eligible countries that carry out a project to create a new company, purchase an existing company or expand its activity. Cofides will also support non-Spanish promoters who undertake investment projects whose consequences will benefit the internationalisation of the Spanish economy.

In general, Cofides does not intervene in projects in sectors such as real estate and defence or those excluded by its environmental policy. In the particular case of infrastructure or other public services, Cofides can offer financing abroad as long as these are managed according to private criteria.

On the other hand, the financial resources managed by Cofides cannot be used to refinance pre-existing debts on better terms, and it also requires a sufficient level of capitalisation in the projects it supports. This ensures that the technical or commercial viability of projects is not affected by a shortage of own resources.

Projects are not eligible, among others:

• Those involving the relocation or replacement of an existing installation in Spain.
• Those that have an unfavourable environmental or social impact on the host country of the investment.

CORPORATE FINANCE EXPERTS

Cofides' most important operations

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