How to harmonize capital markets and regulation across Europe? Petra De Deyne, Regulatory Affairs Manager for Global Markets at BNP Paribas, presents the new initiative of the European Commission to build a single market for all 28 Member States of the Union.

After the crisis of 2007-2008, financial stability was the key priority for the European Commission. In order to restore that stability, the resilience of banks needed to be strengthened and systemic risk in the markets needed to be contained, which had Brussels produce that famous “tsunami” of regulation. Today, most of the work to make banks and markets stable again is done and the respective legislation has been or will soon be implemented.

Growth as a priority

The next item on the European Commission’s to-do list is now to create growth. Therefore, corporates need to grow their businesses, invest and expand. Historically, corporates have been very much dependent on bank lending if they want to expand. However, on the back of capital and liquidity requirements imposed by bank regulation, some banks have found it more difficult to fulfil their role of traditional lender. Seeing their bank funding channels drying up, larger corporates turned to capital markets, but did not always meet favourable borrowing conditions and interested investors. For some of the smaller corporates, getting funding had become as good as impossible. A survey done by the ECB and the European Commission in 2014 on the access to finance of enterprises (SAFE) showed that 35% of SMEs did not get the full financing they asked their banks for in 2013.

Looking at the US, we notice that corporates get about three quarters of their funding directly from the capital markets, and rely only to a small extent on bank lending. In Europe the situation is the other way round. So Europe wondered if they could create a funding landscape that would resemble more the US situation. That would mean that those in need of financing would meet directly with those that have money to invest. It would reduce the dependency of the real economy on banks, which would again contribute to financial stability. However, what is needed in that case is a harmonized, well integrated capital market in Europe. And this is where comes in the initiative of the European Commission: build a Capital Markets Union.

So in short, this is what CMU is about: it is a plan to create a single market for all 28 Member States of the European Union, where, on the one hand, funding choices for corporates will be diversified beyond bank lending and where, on the other hand, investment opportunities and the investor base will be broadened.

So what’s the plan?

“The Plan”, which the European Commission published in October 2015, sets 4 clear objectives:

1. Support job creation and growth
2. Connect financing effectively to investment projects across the EU
3. Make the financial system more stable
4. Deepen financial integration and increase competition

“The Plan” also defines 5 priority areas for action, with over 30 different initiatives for reviews, assessments, reports, initiatives and legislative proposals, all to be taken between now and sometime in 2018.

The first priority is to provide more funding choices for Europe’s corporates and SMEs. Here we will see initiatives to support venture capital and innovative forms of financing, such as crowdfunding. The EU is also thinking about ways to provide necessary data on SMEs to investors, so that they can make well informed investment decisions.

Second, long term investment has to be promoted. An initiative here is to make sure that capital requirements for insurers are reviewed so that they see their investment needs more efficiently met. Measures will also be taken to promote investment in infrastructure projects.

Third, the range of investment choices both for retail and institutional investors has to broaden. In this area, we will see, amongst others, incentives to promote pensions savings and private placements.

The fourth priority is to enhance the capacity of the banks to step up lending. This may sound contradictory, as the idea of the CMU is to move away from traditional lending. However, for a lot of SMEs, banks will still remain the prime source of financing. So Europe wants to make sure that banks can offload more assets from their balance sheet so that they have extra space to lend.

And lastly, the EU wants to dismantle barriers that would hamper cross-border investment across the Member States. This is quite an ambitious area, where certain tax issues will be tackled, and where we will see a certain harmonization as far as national insolvency laws and securities laws are concerned.

Immediate action

Simultaneously with the publication of “The Plan”, the European Commission issued a couple of legislative proposals and 3 consultations, as a matter of launching the short term actions right away and getting the train out of the station.

The European Commission takes immediate action in the field of securitization. This may seem quite controversial as some will still consider this as the root of all evil. However, it is a critical tool to finance the economy and it sits high on the Commission’s agenda. In order to kick start the securitizations market, the EU has come up with a legislative proposal, the purpose of which is twofold:

• First, it aims at reinstalling confidence. Therefore, a quality label is introduced: “Simple, Transparent and Standardized” securitizations. That means that any “STS” securitisation will comply with over 20 different standards, thus helping investors to better understand these products and ensuring quality. Second, it incentivizes banks to restart the activity again by giving these STS securitizations a better capital treatment, compared to other forms of securitisation.
• Next to that, the EU has issued a proposal to adjust Solvency II rules for insurers, so that they would have to deploy less capital when investing in long term infrastructure projects or in European Long Term Investment Funds (ELTIFs).

Also note that the European Commission is looking into covered bonds. Currently there are 26 different covered bond frameworks in the EU, an area which could possibly benefit from a certain level of harmonization. While the idea is not to create a single framework for Europe, the Commission would look to promote best practices, step up transparency and remove barriers that would hamper cross-border investments. We also saw a consultation venture capital and a call for evidence on the cumulative impact of financial legislation.

Reduce paperwork

In the medium term, a review of the Prospectus Directive is on the cards. This is a logical move, given that the EU would like to attract many more corporates directly onto the capital markets to issue debt. Making prospectuses cheaper and less burdensome for smaller issuers on the one hand and more user friendly for investors on the other hand, would be a welcome help in that respect.

Another initiative is a Green Paper (this is a first, general exchange of views between the EC and the industry to explore a certain topic) on Retail Financial Services. Here he European Commission is exploring ways to enhance competition and make sure that consumers have access to a broader range of services in order to get the best deal around, when it comes to mortgages, savings products, insurance, banks accounts etc.

In the long term, count 2017/2018, we can expect further steps to support SME growth markets and private placements, along with plans for a pan-European Pension Fund. As already mentioned earlier, matters regarding withholding tax and insolvency law will get attention as well.

Benefits for companies

All in all, CMU certainly has a fully packed and ambitious agenda. Now what’s in it for companies, really? Potentially a lot. However, we appreciate that the road to a real CMU may be a far longer one. 2019 seems awfully close for some of the changes to  happen. Rebalancing financial intermediation for example will most probably be a gradual, organic process that will go hand in hand with political interests, FinTech developments etc., rather than a major shift on a particular point in time.

Also, it will need a change in mind-set and behaviour by all stakeholders involved. The effects of a CMU may be more pronounced for the corporate sectors of certain countries with relatively small capital markets. For these countries, some of the initiatives could be particularly beneficial. Their domestic capital markets may currently not be able to cater for their large corporates, pushing them away to international markets. CMU could bring them back home and expand their markets.

The benefits of CMU will be different for the different types of companies:

• Start-ups will get special attention, as their innovation and entrepreneurial spirit are key to Europe’s growth potential. At this moment start-ups can turn to crowdfunding, but this is only developing and there is already some investment by business angels. However, these funding channels remain small and local and will not always provide the necessary funding at critical moments in their expansion. The initiatives to step up venture capital for example may be particular beneficial in that respect.
• Small companies that are struggling to get bank funding, especially in those countries that have been hit the hardest by the crisis, may unlock more funding via securitization. SMEs in particular could be positively impacted, as the intended side effect would be that securitisation allows banks to step up the lending capacity, knowing that bank lending for this type of corporates may remain a very important source of funding. Next to that, the European Commission also wants to work closely together with the SME growth markets, a new market sub-category created under MiFID II to facilitate access to capital for SMEs, to ensure that the regulatory environment for these markets delivers the expected results.
• Medium and large-sized companies, which may already have access to capital markets, should also feel the effects as CMU will support investors who wish to place larger amounts of capital in the market. The initiative to promote private placements, building on successful experiences such as the one in Germany and through supporting market-led initiatives such as the one by ICMA on the use of standardized documentation could be quite helpful. Tackling tax issues could come in helpful as well.

What is important too is that the European Commission is also planning to review the functioning of the European corporate bond market and to see how market liquidity can be improved. A well-functioning secondary market will be crucial for the success of the primary debt markets.

So all in all, the Capital Markets Union is an ambitious, yet challenging plan of the European Commission. Ambitious because it intends to reengineer Europe’s traditional funding channels. Challenging because of the wide range of issues that need to be tackled to get there and the tight deadline. The outcome should be that corporates meet with investors in an efficient market place, thus broadening the scope of options for both parties to contribute to economic growth.

(Source: Focus Magazine CIB)

 

Factoring is playing an increasingly important role in promoting the growth of Belgian and international companies. BNP Paribas Fortis Factor provides the oxygen to their growth story.

You want your business to grow and thrive, and so all the help and guidance you can get are more than welcome. The reason is clear: support brings extra energy to your entrepreneurial spirit and essential resources to fuel your innovative growth plans.

BNP Paribas Fortis Factor, a subsidiary of BNP Paribas Fortis, offers a service designed precisely for that: to relieve stress and motivate, to promote and nurture your growth. In this interview, Jef Ramaekers, Head Factoring Benelux at BNP Paribas Fortis Factor, and Audrey Bourguet, Working Capital Advisor at BNP Paribas Fortis Corporate Banking, come together to discuss one key topic: Factoring and the positive role it can play for Belgian businesses and their international branches.

Explaining factoring succinctly, however, is a challenge. Jef Ramaekers, Head Factoring Benelux at BNP Paribas Fortis Factor, clarifies: “To start with, factoring is a means, not an end. It’s a tool for business owners or CFOs to optimise working capital. Every financial manager, in any company, will at some point ask the same question: ‘Who do I need to pay, when, and how can I pay them with the resources I have?’ Simply put, factoring enables businesses to pay suppliers without waiting for customer payments to come in. We finance invoices by converting them into directly available cash for the business.”

This process actively alleviates concerns and reduces stress factors, allowing entrepreneurs to focus on what they do best – running their business. Ramaekers adds, “We like to say ‘giving oxygen to growth stories.’ But I certainly see the value in the term ‘relieving stress’ here. By giving an entrepreneur or CFO the freedom to focus on core activities and by taking on a key part of the financial management, we create extra time and opportunities. And they also have less to worry about."

Positive shift

According to Ramaekers, the traditionally negative perception of factoring is a thing of the past: “Factoring was once seen by many business leaders as a ‘lender of last-resort’ – a way to borrow money from the bank by using assets, receivables, or customer invoices. In other words, a company’s last resort. Fortunately, those days are long behind us. We’ve evolved towards a very open attitude to factoring, allowing our division to grow into a true service provider. Our clients’ primary need remains short-term financing. Today, one in five invoices in our country is paid through factoring. Factoring is now a substantial market, representing more than one hundred billion euros per year. BNP Paribas Fortis Factor manages 41 per cent of this market, accounting for EUR 55 billion at the end of 2023.

Growth

From the bank’s perspective, factoring also represents a significant growth story. Audrey Bourguet, Working Capital Advisor at Transaction Banking for BNP Paribas Fortis, explains: “Today, factoring is the financial product that nicely aligns with the rising turnover of our companies. It provides a practical solution for working capital and is part of a suite of Transaction Banking services. In addition to Factor, this also includes Global Trade Solutions, Cash Management, Fixed Income, and Working Capital Advisory. All these services share a common goal: provide the best possible solution for our clients’ financial needs and be there for them in all situations where they can benefit from our support.”

Factoring, from the bank’s standpoint, represents an increasingly strong and positive story, unlinked from its past connotations. Bourguet adds, “You can see this in how we truly integrate factoring within our bank and the group, and in how we offer this service to businesses across all sectors and sizes. We work with a wide range of companies in the Belgian economy. As a result, we have seen that it is precisely those companies that succeed in optimising the funding of their working capital by making use of our factoring services, among other things. This reinforces our belief that it is a very positive story: we’re talking about a form of financing that seamlessly adapts to the growth of any business, large or small.”

Natural evolution

Factoring is available to small, medium-sized, and large companies alike. Ramaekers says, “We aim to provide a solution that supports businesses throughout their entire lifecycle – we’re genuinely unique in the market in this regard. This means that we are there for start-ups, SMEs, multinationals, and every type of business in between. We are the only bank on the market to have a digital solution for small businesses in the form of Easy2Cash. This digitalisation makes it a very cost-effective option with highly competitive margins, but also a reliable, particularly fast and up-to-date link with our customers and their accounting, using a digital yet personal approach. Although Easy2Cash is digital, it includes a dedicated contact person, making the solution both personal and accessible. For start-ups, for example, it’s often challenging to secure credit. For these modest, short-term credit needs, we provide a solution in consultation with the BNP Paribas Fortis banker, enabling them to keep growing without being hindered by their expanding requirements for financing, automation, accounting, etc. Factoring gives them additional resources to meet these needs.”

Ramaekers notes that the steady growth of young companies also demands an adaptation of financial services: “It’s a natural evolution that benefits both partners. If your business grows, we grow with you – it’s that simple. During all those specific growth moments – when entrepreneurs start considering additional staff or potential exports – factoring grows with them. And we do this together with the bank; the group behind this story plays as a team. And let’s not forget, we’re here even if more challenging times come. We’re well aware that a company’s journey is not always easy. It’s at those moments that the value of our expertise and the support we provide really stands out.”

When a company grows into a large enterprise with the profile of a multinational, the importance of factoring further increases. Ramaekers says, "More than 65% of the really large companies in Belgium, with a turnover of more than EUR 1 billion, use factoring services. And half of them are our customers. Factoring often provides additional economies of scale for large enterprises. For example, we can finance receivables that have no impact on a company’s debt ratio. By combining invoice pre-financing with credit insurance, companies can avoid having debt on their balance sheet, with the approval of the company auditor. It’s a technical matter, but it is this combination of various financial elements that makes factoring efficient, high-performing and valuable for many companies.”

Economic fabric

The two agree on the value of factoring in supporting the economic fabric. Bourguet explains, “Part of this supportive role is due to the fact that factoring is a completely transparent financial service – you can only finance what is effectively there.” Ramaekers adds, “Absolutely. Plus, factoring sits right in the middle of the value chain, embedded in the economic fabric. We work alongside our clients, their customers (debtors), the bank, and so on. This makes us a key figure in this chain. We coordinate and facilitate. And for this we need to have our feet firmly planted on economic ground, often for the benefit of all our customers. When we succeed in, for example, reducing the payment terms of invoices for a business, it has a positive ripple effect not only for that company but for the economic process as a whole. This is why I am convinced that we play a broad role in the economic ecosystem – often broader than is generally perceived.”

Opportunities and fair guidance are also crucial in this financial field. Ramaekers says, “At Factor, we engage in transparent discussions with the bank and our clients to find the best solution for their needs. This means we identify opportunities and often suggest them, but also act as an honest, proactive sounding board. It’s about dialogue, analysis, and constructive critique.” Bourguet concurs: “I completely agree. With a service like factoring, we are deeply involved in our clients’ economic activity – the entrepreneurs who rely on us. So, we take a broad view of every case, looking beyond just a banking product or a single solution. This is what makes BNP Paribas Fortis’s approach so strong: we operate as a team, consisting of specialists from both Factor and the bank. This group of experts from different, well-coordinated entities provides entrepreneurs and companies with a comprehensive approach, even for complex cases. These are the moments when we truly rely on our internal expertise: years of experience; colleagues with solid knowledge; reliable economic data applicable to numerous scenarios. This combination enables us not only to guide companies in the right direction but also to provide financial support that is fair, safe, and sound.”

Future

Just like the bank itself, BNP Paribas Fortis Factor frequently considers its strategic direction for the future. As a provider of forward-thinking services, it’s essential to adopt a future-oriented approach to financial services. Ramaekers notes, “Earlier, I mentioned our digital solution, Easy2Cash. I think we can be quite proud of this because it is a glimpse into the future – today. Beyond that, our services are evolving very organically towards the future: we’re constantly striving to make them accessible to an ever-wider group of clients across the economic landscape. Additionally, we’re very focused on sustainability.”

Bourguet adds, “This last aspect is a natural extension of what we do at the bank every day. Our commitment to sustainability extends seamlessly to factoring: we encourage and motivate our clients to join us on this sustainable path.”

The two teams also collaborate closely in developing new services. Ramaekers explains, “We see a significant evolution in the commercial sector, with many online stores offering deferred payment options, such as a 30-day extension. This practice is also increasingly common in the B2B market. Factoring can innovate in this area, so we see it as part of the future we’re actively developing. From a European perspective, there are other innovations too: e-invoicing, for example, is soon to become the standard for all businesses. This presents both a challenge and an opportunity in terms of services and advisory, which we’re shaping together with the bank.”

The two partners have also developed new services. Ramaekers: "We have observed a remarkable evolution in the commercial sector, where many online stores offer payment delays of 30 days, for example. This practice is also increasingly common in the B2B market. Factoring can offer an innovative solution, so this is part of the future that we are currently developing. On the European level, there are also new features: e-invoicing will soon become the norm for all companies. This presents both a challenge and an opportunity in terms of services and advice, which we are developing together with the bank."

Bourguet concludes, “It’s clear that this is a story of synergy, one where we work together seamlessly. This isn’t just rewarding for us but also for our clients. We’re rooted in the heart of the economic marketplace, yet we’re also focused on creating platforms and products that will lead the way and shape the future of this market.”

More information: https://factor.bnpparibasfortis.be/

BNP Paribas Fortis is ready for the mobility of tomorrow. And Laurent Loncke, General Manager Retail Banking and member of the bank’s management committee confirms this when he says “We do much more than lease electric vehicles”.

How can companies leverage mobility as part of their transition?

"If we look at vehicle usage alone, switching from fossil fuels to electric energy can reduce CO₂ emissions by a factor of four. This transition is being encouraged in our country more than ever by tax incentives and tax breaks. From 2035, the European Union will also ban the sale of cars with combustion engines. Whether it’s for the company fleet or company cars for employees, electric driving is the way forward, alongside other forms of mobility."

Are all businesses aware of this?

"These days, two out of every three new vehicles are company cars. And 80% of those orders are electric vehicles, a trend that is also apparent at our partner Arval."

So companies are playing a pioneering role in this transition?

"Certainly. First and foremost because former company cars find their way to the second-hand market at some point, making electric driving more accessible for everyone. Secondly, by choosing an electric car, you can encourage your friends and family to follow your example. Our recent Profacts survey (only in Dutch and French) showed that 85% of electric vehicle owners are satisfied to very satisfied that they switched to an electric vehicle. However, 42% of Belgians are still reluctant. Half of them are worried their battery will run out before they can get to a charging point."

Is their fear justified?

"Not really. Most drivers only feel comfortable with a range of 500 kilometres, even if they only drive a few dozen kilometres a day. It’s true the charging network does need to be developed further. Many people, especially those living in cities, cannot install a charging point at home. BNP Paribas Fortis is contributing to the expansion of the charging network through its participation in Optimile. This Ghent scale-up offers software solutions for charging electric cars and is developing strategic partnerships for the installation and maintenance of charging points."

Can an electric car be part of each employee’s remuneration package?

"Today, there are already less expensive vehicles on the market, making electric driving an option for middle and lower-management. The Total Cost of Ownership of an electric car is the most important factor, however. And this is still much lower than that of a vehicle with a combustion engine. Leasing is often the best solution. We have a comprehensive, tailor-made offering for all companies, regardless of their size and needs."

What exactly do you mean by a 'comprehensive offering'?

“In addition to leasing, we are able to offer charging solutions at home or at work, a charging card for public networks, the automatic reimbursement of electricity consumption at home, an app to find charging stations, and electric driving training through our many partners.”

So a complete ecosystem?

"We want to contribute to the mobility of tomorrow. By financing it, through credits or leasing, and with insurance, but also by working with partners outside our traditional activities. Like Optimile, and Touring, an organisation that is synonymous with reliability."

But mobility isn't just about cars, is it?

"We believe we need to rethink our relationship with the car. Given the climate targets and the increasing scarcity of resources, it is simply not possible to replace every internal combustion engine with an electric car at the moment. Arval offers its extensive expertise to companies considering a different approach to mobility. We help them analyse their needs, propose alternatives to the car, establish a mobility budget or draw up a mobility policy. We offer bicycle leasing, sometimes in combination with car leasing. We strongly believe in multimodality and mobility-as-a-service solutions: the option to combine different transport modes and pay for them without too much hassle. This is also one of the specialities of our partner Optimile."

Are companies and their employees open to this idea?

"The idea of employees no longer saying 'I have this amount for my car in my salary package', but rather 'I have this amount for my mobility'  is gaining traction. People are already paying for use rather than ownership in gyms or for streaming services. Mobility is going down the same route, with car-sharing and flat-rate subscriptions, making costs more predictable for businesses and private individuals. But the pace of change will also depend on the success of the federal mobility budget. For now, uptake is slow."

 

BNP Paribas Fortis SA/NV – Montagne du Parc/Warandeberg 3 – 1000 Brussels – VAT BE 0403.199.702 – RPM/RPR Brussels

Optimile SA/NV – Sassevaartstraat 46 bus 204, 9000 Ghent – RPM/RPR Ghent – VAT BE 0648.837.849 – www.optimile.eu – BNP Paribas Fortis SA/NV holds a greater than 10% stake in Optimile SA/NV.

Arval Belgium NV, Ikaroslaan 99, 1930 Zaventem – Brussels Register of Companies – VAT BE 0436.781.102.

Touring SA/NV, Koning Albert II-laan/Avenue Roi Albert II 4 B12, 1000 Brussels – Brussels Register of Companies – VAT BE 0403.471.401, is registered under this number with the FSMA, Rue du Congrès/Congresstraat 12-14, B-1000 Brussels, and acts as an associated agent on commission for AG Insurance SA/NV. AG Insurance SA/NV owns a greater than 10% stake in Touring SA/NV.

Belgium’s three regions provide a range of grants for companies and self-employed people making investments. Our experts can help you make sense of the situation and submit your application.

The terms and amounts of investment grants vary greatly from one region to another. The applicable rules depend on the location of the operational entity making the investments. The company’s registered office is not relevant and can be located in any country. You should also bear in mind that applying for a grant is still a fairly cumbersome administrative process. That’s why our experts take care of all the steps, from submitting the grant application to collecting the grant money.

Flanders: a range of grants

Various types of grants are available in Flanders, the most important of which are support for strategic transformations, the ecology bonus, strategic ecological support, the SME e-wallet and the SME growth subsidy.

Each type of support targets different types of investment and different companies. Subsidy levels also vary widely, from 8% for a strategic investment by a large company to 50% for consultancy fees paid by an SME.

Our experts can help you identify subsidy opportunities and then arrange for you to meet a specialist from VLAIO, the Flemish Agency for Innovation and Entrepreneurship, who will then help you with the rest of your application.

Wallonia: traditional and ecological aid

In Wallonia, investment grants are reserved for companies operating in a limited number of eligible sectors. Excluded activities include retail, transport and the liberal professions.

The terms and conditions also differ according to the size of the company. Small businesses must invest a minimum of €25,000. Large companies need to reach higher thresholds and invest in a development zone.

Examples of eligible business investments include buying/building a property, buying land and buying new business equipment.

The basic grant varies from 4% to 6%, but can be higher if the applicant creates jobs, takes an innovative approach or diversifies abroad, for example. A larger grant, up to 20%, may be obtained for projects that promote the sustainable use of energy and environmental protection.

Please note that it is essential to submit the request before any firm investment commitment is made: investments for which you have already accepted a quote can no longer be subsidised.

Our experts can guide your company through the entire process.

Brussels: the most generous

The Brussels subsidy for investments in goods, property or works is open to most sectors. In total, around 80% of the capital's economic activities are eligible for grants. The two main exceptions are education and real estate.

To qualify for a grant, the investment project must be worth at least €10,000 for a start-up business and at least €15,000 in other cases, depending on the size of the business. In addition, it must aim to develop or improve an existing activity: simple replacement expenditure does not qualify.

The aid can amount to up to 30% of the investment, although the average is 12.5%. The level of subsidy depends on a number of criteria, such as whether the company is a start-up and whether the investment will increase the number of people employed by more than 30%.

Over the course of 2024, reforms to the aid system will increase incentives for sustainable and circular economy projects.

Please note that it is essential to submit the request before any firm investment commitment is made: investments for which you have already accepted a quote can no longer be subsidised.

Our experts can guide your company through the entire process.

A young Belgian company that installs biogas facilities on farms is growing fast. Here’s how BNP Paribas Fortis is helping its development.

Biolectric is the epitome of the sustainable do-economy: it manufactures and sells anaerobic digesters, which are installed on farms so as to produce ‘green’ energy based on the biogas released from the farm’s own manure.  The green heat and power generated from cow dung make the farm an energy-positive business.  No less important is the fact that this approach reduces emissions of the powerful greenhouse gas methane by up to 70%. The average Biolectric reduces greenhouse gas emission by an equivalent of 2.000 kilometers driven in an modern car.

The company, which started up in 2011 in the East Flanders municipality of Temse as a typical scale-up, nowadays sells anaerobic digesters to farmers all over Europe.

Biolectric is a fast-growing company. In 2019, in order enable further growth, the bank provided the firm with a series of credit facilities, mostly in the form of a ‘sustainable impact loan’.

Sustainability policy

Tom De Winter is Biolectric’s contact at BNP Paribas Fortis. He tells us: “The bank has been working with Biolectric since the very beginning, but the relationship has become much closer since 2017. In order to obtain a better grasp of their technology, I’ve visited the firm several times with expert from our Sustainable Business Competence Centre. It’s very important to be able to understand and evaluate the firm’s technical proposition. When Biolectric founder Philippe Jans and industrial investment company Ackermans & van Haaren (AvH) came to talk to us last year about the imminent onboarding of the company by AvH, and the subsequent creation of a new low-threshold business segment, namely the construction of a facility with its own anaerobic digesters so as to be able to sell electricity to farmers in Belgium, the Netherlands and France, we knew straight away that we ought to go along with them on the project.”

“We weren’t the only bank in the running, but the client had clearly chosen us. The coordinated approach of BNP Paribas Fortis and our clear policy of backing sustainable solutions played a big part in that decision,” explains Tom De Winter.

Biolectric

As a pioneer, Biolectric has independently developed compact anaerobic digesters, known as ‘pocket digesters’, specifically designed to turn cattle dung into electricity and heat. Today there are over 200 of the company’s installations operating all over the world. This technology provides Biolectric farmers with a very nice economical as well as ecological return on their investment.

In 2019 Ackermans & van Haaren, which is also a BNP Paribas Fortis client, acquired a 60% stake in the company from Taste Invest, with founder Philippe Jans retaining the remaining 40%. AvH brings its professional management experience to Biolectric, thus strongly boosting the firm’s growth potential.