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Facts and Figures 2009

InvestitionsBank des Landes Brandenburg  

• InvestitionsBank des Landes Brandenburg (ILB) was established on 31 March 1992 as an institute incorporated under public law.
• As the investment and development bank of the State of Brandenburg we operate in the sectors commerce, infrastructure and housing construction.  We cooperate closely with the savings banks, and with the cooperative and private banks.
• The members of the Board of Managing Directors are Klaus-Dieter Licht (Chairman) and Jacqueline Tag.
• Since 10 December 2009 ILB's shareholders have been the State of Brandenburg and NRW. BANK, each with 50%. 
• Despite the financial markets crisis and the recession we achieved our best financial result since our foundation in 2009.  With moderate balance sheet growth ILB again achieved a good result for the year.
• Interest income showed a very gratifying development, rising by EUR 9.1 million from the 2008 result to reach EUR 52.9 million.  At EUR 47.7 million we achieved a good result for 2009 before risk provision and allocations to the reserves.
• Since 1990 ILB has supported just under 21,000 commercial projects as part of the promotion of trade and industry, and stimulated investment in industry, the infrastructure and housing construction to the impressive amount of EUR 27 million.  This has helped to create 125,000 new jobs and renovate or build more than 300,000 housing units.

The Promotional Business in General

• Our promotional business consists of handling promotional programmes on behalf of the State of Brandenburg and offering ILB products.
• Altogether in 2009 we approved loans and grants totalling around EUR 1.6 billion.  Our volume of commitments was 52.2 percent higher than a year before, and was a record result.
• In the number of projects promoted we also achieved an increase over the year 2008, with a rise of 23.3 percent to 4,742 projects.
• Beside the promotion funded from public budgets, 57.5 percent of our total volume of commitments in 2009 consisted of ILB funds, which is an increase of 36.4 percent over the previous year.  ILB is successfully continuing its development to a promotional lending bank.
• The ILB product family of the Brandenburg Loan is playing an increasingly important role.  This offer is designed for small and mid-size enterprises, the agricultural sector and municipalities in Brandenburg.  Since the Loan was introduced our expectations have clearly been exceeded.  The number of projects promoted rose markedly in 2009 from 2008 - partly due to the two new programmes offering support in the crisis.  We were able to commit a total of EUR 232.5 million in Brandenburg Loans in 2009.

• In the trade and industry sector we support commercial enterprises, new businesses and the self-employed, as well as agricultural and media enterprises, by providing targeted funds.
• We handle the promotional programmes of grants and loans of the State of Brandenburg and the Federal Government, supplementing these offers with ILB products.
• 42.3 percent of the total volume of commitments went to commercial, agricultural and media enterprises and shareholdings.  Altogether we committed around EUR 671.7 million in promotional funding for these sectors, enabling investment of more than EUR 1.2 billion to be undertaken.
• In trade and industry alone 1,533 projects were promoted for a total of EUR 486.4 million in promotional funds.
• Grants under the Joint Task "For the Improvement of the Regional Economic Structure" (GRW-Gewerbe) are still the most important promotional instrument for the commercial sector.  With the inclusion of finance from the European Fund for Regional Development (EFRD) we committed a total of EUR 197.4 million under this programme.  Hence this programme again accounted for the largest share of the volume of promotion to trade and industry.
• In our programme of Brandenburg Loans for SMEs we were able to approve 340 applications for a volume of EUR 39.4 million.
• The volume of commitments in agricultural promotion in 2009 was nearly 50 percent higher than in the previous year.  This is partly due to the fact that the Brandenburg Loan for Rural Areas, which had to be suspended at times in 2008 owing to changes in the subsidy laws, could be offered again in 2009 and met with strong demand.  Altogether we provided EUR 133.1 million for investment in the agricultural sector, in response to the continued high need for finance there.
• We handle the promotional measures of the Film Promotion Fund of the States of Berlin and Brandenburg on a trust basis for Medienboard Berlin-Brandenburg GmbH.  The volume of promotion here was EUR 28.9 million in 2009.  In addition, we  provided EUR 13.7 million in interim finance for film and television productions.
• Through our subsidiary BC Brandenburg Capital GmbH we provided six equity capital financings totalling EUR 6 million.
• In 2009 BFB Wachstumsfonds Brandenburg GmbH, a growth fund, commissioned by the Ministry of Economics (MW), was able to commence operation.  It offers small and mid-size enterprises additional equity capital, partly using EFRD funds.
• In addition, the preparations to establish an early phase risk capital fund for new businesses, especially those around the Brandenburg universities and research institutes, were completed when the European Union gave its approval and the Ministry of Economics commissioned the fund, which commenced operating in January 2010.

• In the infrastructure sector we finance infrastructure projects by municipalities, municipal organisations and enterprises, and by social, scientific, educational and cultural facilities.
• The volume of commitments in the infrastructure sector was increased by nearly 80 percent in 2009 from 2008.  Beside the number of infrastructure projects the main reasons for the significant increase were the implementation of the second economic stimulus package, the increase in business handled with the KfW Banking Group and the activation of promotional programmes using EFRD funds.
• Altogether we promoted 1,374 infrastructure projects to a total of EUR 783.2 million.  ILB products accounted for the largest share at EUR 537.3 million.
• Demand for the Brandenburg Loan for Municipalities was about on the previous year's level in 2009, with 54 loan commitments totalling EUR 90.3 million.

Housing Construction

• In the housing construction sector we promote projects in the municipal, cooperative and private housing sectors to modernise and renovate rented housing.
• We support private builders who are creating residential housing for their own use.
• Our ILB products supplement the range of State promotion.
• Altogether in 2009 we supported 945 projects containing 3,800 housing units with loans and grants totalling EUR 133.6 million.
• Promoting the modernisation and renovation of rented housing to suit the needs of different generations was the main focus.
• Start-up financing for owner-occupied housing construction developed positively.  We promoted 103 housing units to a total volume of EUR 4.7 million.