Download Annual News Conference 2011

Investment Plan for Europe
Partnership of EC and EIB to
establish the European Fund for
Strategic Investments (EFSI)
Luxembourg, 24 March 2015
24/03/2015
European Investment Bank Group
1
Investment Plan Europe - Rationale
EU investment & competitiveness gap
EU Investment Plan
EU/MS policy action + EU budget +
High liquidity in the market
EIB capacity to mobilise private
sector funds towards strategic
Public budget constraints
investments.
Financial and non-financial barriers to
investment
28/02/2013
European Investment Bank Group
2
Investment Plan Europe – 3 Pillars
2. MAKING FINANCE REACH THE REAL
ECONOMY
1. MOBILISING FINANCE FOR INVESTMENT

Boost to strategic investment and access to

Investment Project Portal
finance for SMEs and mid-cap companies via

European Investment Advisory Hub:
the European Fund for Strategic Investment
technical assistance
(EFSI) – EIB/EIF

Cooperation with National Promotional Banks
and the EIB
3. IMPROVED INVESTMENT ENVIRONMENT

Predictability and quality of regulation

Removing non-financial, regulatory barriers
in key sectors within EU Single Market

Structural reforms at national level
Aim: to mobilise at least €315 billion in investment across the EU
28/02/2013
European Investment Bank Group
3
Every piece of the puzzle counts
24/03/2015
European Investment Bank Group
4
Pipeline of viable projects


Task Force EC-EIB-Member States:
• Member States were asked to identify potentially viable
projects of European relevance to be realised in the
short and medium term
Identified around 2,000 projects across Europe worth some
EUR 1.3 trillion of potential investments
• Outcome: a forward-looking and transparent pipeline of
investable projects.
• Purpose: to create confidence and encourage investors
to invest and build expertise in Europe
No automatic financing by EC or the EIB for these projects
24/03/2015
European Investment Bank Group
5
What is the EFSI (European Fund for Strategic Investments)?





Legal format:
• contractual arrangement EC & EIB - no separate legal entity
• EU guarantee in favour of EIB
• All operations are EIB Group operations
EFSI governance:
• Steering Board
• Investment Committee
• Managing Director
EIB governing bodies will approve each transaction
EIF governing bodies approve operations in the SME Window
Possibility for third parties to participate in the EFSI in different
ways (Member States, National Promotional Banks, investment
platforms, private sector entities)
24/03/2015
European Investment Bank Group
6
European Fund for Strategic Investments (EFSI)
24/03/2015
European Investment Bank Group
7
Delivered on the 2013 capital increase to EIB
180 billion mobilised by March 2015, ahead of December 2015 target
24/03/2015
European Investment Bank Group
8
Mobilising new investment
EFSI
24/03/2015
EIB
Group
European Investment Bank Group
9
General Objectives: Wide eligibility
Additionality:
• address market failures or sub-optimal investment situations
• could not / to same extent have been carried out in the period without EFSI
• higher risk profile: typically EFSI operations, as well as EFSI portfolio
• Additionality considered if risk corresponding to EIB Special Activities
General Objectives: EIB initial verification that eligibility criteria are applied
• research, development and innovation
• development of the energy sector
• development of transport infrastructures, equipment and innovative technologies
for transport
• financial support through the EIF and EIB to entities having up to 3000
employees, with a particular focus on SMEs and small mid-cap companies
• development and deployment of information and communication technologies
• environment and resource efficiency
• human capital, culture and health
28/02/2013
European Investment Bank Group
10
Instruments and Counterparts
Initial Investment Period: contract to be signed by June 2020
Eligible Instruments Infrastructure and Innovation Window:
• loans, guarantees, counter-guarantees, capital market instruments
• any other form of funding or credit enhancement instrument,
• Participation in funds and quasi-equity
• Including bilateral cooperation with National Promotional Institutions (NPI) and
Multilateral Platforms
Eligible Counterparts: EIB normal “know your customer” & compliance requirem.
• entities of all sizes, including utilities, SPVs or project companies, SMEs or midcap companies,
• NPIs or financial institutions for intermediation, investment platforms,
• equity/debt funds and any other form of collective investment vehicles,
• public sector entities (territorial or not, but excluding direct Member State risk)
and public sector type entities.
28/02/2013
European Investment Bank Group
11
How will the EFSI operate?
Role of EIB / EIF
 All operations are EIB or EIF operations
 EIB and EIF normal appraisal and processes apply, including
economic and technical viability
 EIB governing bodies approve every operation
 EFSI specific information: Additionality, mobilitation of
investment and private capital
 EFSI increases EIB risk bearing capacity, but does not involve
subsidy (normal pricing)
Role of the Investment Committee
= Decision on EU Guarantee, likely to involve:
• Contribution to EFSI and EU policy objectives
• Quality and Soundness of the project (including growth and
imployment)
• Technical and financial contribution to the project
European Investment Bank Group
12
Eligible operations

Commercially sound

Economically and technically viable

Added value (additionality)

Investments boosting employment and growth

Bank intermediation is possible

Pricing commensurate with the risk – no subsidy element
- Typically higher risk profile than normal EIB’s normal operations
- Risk-absorbing products to foster the implementation of additional
projects and to support the development of SMEs and MidCaps
24/03/2015
European Investment Bank Group
13
How will the EFSI operate?
 All operations are EIB or EIF operations
 EIB and EIF normal appraisal and processes apply
 EIB governing bodies approve every operation
-
-
24/03/2015
If you know the EIB, get in touch with your normal contact person
If you do not, go on EIB’s website and find the individual in the
Operations Department responsible for the Member State where the
project is located or where your company is located
If in doubt, check out the EIB web page or contact the EIB InfoDesk
European Investment Bank Group
14
SME Window of EFSI deployed by EIF
EUR 2.5bn
provided by EIB
EUR 2.5bn
guarantee cover
provided by EU
24/03/2015
- Accelerated and
additional financing
support to SMEs and
mid-caps
- Removing market
gap
European Investment Bank Group
EUR 75bn of
investments in
SMEs and midcaps
15
European Investment Advisory Hub (EIAH)
Project promoters
Public authorities
Member States
Private sector
•Web content + Web portal + Help Desk team
European Investment Advisory Hub
(EIAH)
Managed by EIB in partnership with EC
EIB’s existing
advisory programmes
and activities



Project support (JASPERS,
project preparation and
implementation support)
Financial instruments (ficompass, bilateral services
for MAs)
Access to finance (InnovFin
Advisory, EPEC, NPST)
24/03/2015
Additional advisory
and technical
assistance


New investment support
also in areas relevant to the
scope of EFSI (could be
delivered by EIB advisory or
operational teams)
Identification of needs as
they arise
European Investment Bank Group
EIAH’s partner
institutions’ expertise


Network of institutions incl.
EIB Group, EC, National
Promotional Banks, etc.
Integrated collaboration
model
16
Next steps
Jan. 2015
EU lawmaking
process
Operational
preparation
and
follow-up
Agreement
on draft
Regulation
March 2015
June 2015
Mid 2018
Fast-track
approval
by EU legislators
Entry
into
force
Progress review
and further options
considered
European Investment Bank starts
activities using own resources
The EFSI is operational
Project identification continues,
also based on Task-Force report
A transparent EU project
pipeline is in place
Work starts on building
Investment Advisory Hub
The Investment Advisory Hub
starts functioning
European Investment Bank Group
17
Q&A…
24/03/2015
European Investment Bank Group
Thank you!
18