Financing of foreign investments


Any Luxembourg company:

  • which is generally eligible for an intervention by SNCI;
  • which has its main place of business in Luxembourg for more than 5 years;
  • which has an annual turnover not exceeding EUR 250 million.

The Luxembourg-based mother company has to hold at least 51% of the subsidiary’s share capital, either directly or indirectly over the whole period over which the financing is granted. The subsidiary has to be incorporated as a commercial company.


The loans are aimed at co-financing Luxembourg-based companies establishing themselves abroad as part of their development strategy to acquire new markets and to strengthen their activities in Luxembourg.

Eligible investments

Production equipment and buildings used for professional purposes, as well as the acquisition of equity stakes done in order to gain control over an existing company are eligible costs.

Evaluation of applications

All applications are analyzed by SNCI regarding their interest and their potential for the further development and strengthening of the Luxembourg-based mother company as well as regarding their national interest. The granting of a loan needs approval from the Ministers of Finance and of the Economy.

Fixing of the loan

There is a double limit for this type of loan:

  • a maximum of EUR 2.5 million per project;
  • SNCI’s intervention cannot exceed 50% of the total investment, nor the beneficiary’s part in it.


SNCI’s debtor is the Luxembourg-based mother company that uses the funds to finance the investments abroad.


The loan’s duration is fixed according to the useful life of the investment financed, as well as to the business plan, not to exceed 10 years.

Interest rate

The interest rate is set according to the evaluation of the project. It is fixed over the loan duration.


In principle, repayment is done by quarterly instalments. A grace period of maximum two years on the repayment of the capital may be granted. Early reimbursement is permitted at no cost.


Generally speaking, a pari passu principle is applied – the SNCI should be offered the same guarantees as those provided to other banks involved in financing. In exceptional circumstances, specific guarantees may be taken.


The application is to be sent directly to SNCI. A detailed description of the planned investment, including its cost, a motivation for the project, a business plan, the financing plan as well as the financial statements of the preceding 3 years, should be included.