The combination of financial instruments and grants in one operation represents a major development, allowing for the combination of a wide typology of grants, including investment grants or capital rebates, in a single financial instrument. Here, financial instrument rules will apply to the entire combination in one operation, significantly facilitating their implementation.
For combination financial instruments, the grant should be linked and necessary to the financial instrument and should represent less than 50% of the total financing provided by the financial instrument. Combination with grant increases managing authorities’ capacity to address specific market failures, and to provide incentives to final recipients to undertake investments and to attract private financing. This expands the scope to design tailored financing solutions, delivering programme objectives by supporting viable investment projects, which would not otherwise find adequate financing.