During the 2024 financial year, the total number of new contacts recorded with Luxembourg companies by the Société Nationale de Crédit et d’Investissement (SNCI) amounted to some 700, according to its latest annual report published on 25 June. “In the context of all these contacts, the SNCI decided on financial operations totalling €76.1m, while the corresponding figure for 2023 was €74.1m [an increase of 2.7%; editor’s note],” says a report from the organisation, headed by Eva Kremer. “Taking all loans together, the SNCI has therefore supported 87 businesses through its various financing programmes, over 95% of which were granted to small and medium-sized enterprises.”

This amount was allocated under the four programs: proStart, proDevelop, proInnovate and proTransfer. These are designed to support businesses at every stage of their development. “In an uncertain economic environment, marked by geopolitical tensions, rising technological investment needs and the challenges associated with the ecological transition, the SNCI has continued and strengthened its action to support the competitiveness, innovation and sustainability of Luxembourg companies,” says the report.

Decreasing profit

If investment credits are decreasing (€10.1m in 2024 compared with €19.5m in 2023) as well as RDI financing (€22.2m in 2024 compared to €53.9m in 2023), the SNCI’s financial operations were dominated by equity transactions, which amounted to €47.1m, compared to €0.4m in 2023. In particular, strategic loans amounted to €44.1m.

The profit for the 2024 financial year was €52.8m compared with €58.4m in 2023. The report gives more details: “The 2024 result is positively impacted by the following items: interest income of €10m higher than in 2023, a foreign exchange gain of more than €3m (unrealised profit) and a realised gain on disposal of €7.4m in the context of a stake in the SNCI. This positive performance was negatively impacted by value adjustments of almost €41m on securities treated as financial fixed assets and on holdings, and value adjustments of almost €8m on receivables and provisions for contingent liabilities and commitments.”

Continued deployment of LFF 2

Faced with the crisis in the construction sector, the SNCI launched “special anti-crisis financing” in September 2023 and later extended it until December 2025. Eight companies in the sector have already benefited from this support. In addition, alongside Luxembourg banking partners, the SNCI has joined the capital of Prolog Luxembourg SA, with a 17.65% stake, as part of an overall €250m initiative to stabilise the sector (though this initiative won’t be extended beyond 30 June).

Last year also saw the continued deployment of the Luxembourg Future Fund 2 (LFF 2), which is endowed with €200million, including €160m committed by the SNCI. Managed by the European Investment Fund (EIF), LFF 2 broadens the scope of its predecessor by supporting more mature industrial and service companies seeking to grow through innovation (in the broadest sense, including more traditional companies) and debt and/or equity funds supporting the development of SMEs.

This article was originally published in French.