Download The EIB and the Investment Plan for Europe Overview EARTO

The EIB and the Investment Plan for Europe
Overview
EARTO ANNUAL CONFERENCE
Luxembourg, 29 April 2015
Klaus Trömel
Director General, Head of Lending
European Investment Bank
European Investment Bank at a glance

Created with the Treaty of Rome in 1958
and owned by 28 EU Member States

EU’s policy-driven, long-term lending
institution

Self-sustaining, non-profit maximizing
institution

Sizeable subscribed capital of €242 billion
(end 2014 own funds € 61 billion)

Largest Multilateral lender and borrower in
the world

Highest credit rating, 0% risk-weighted and
the only supranational bank with direct
access to a central bank liquidity (ECB)

Projects in over 160 countries

Parent company of the European
Investment Fund (EIF)
European Investment Bank
EIB Ratings
Long-term
Outlook
Moody’s
Aaa
Stable
S&P
AAA
Stable
Fitch
AAA
Stable
2
EIB so far: EIB Group activity until 2014
Innovation
and
skills,
14.7
Climate
action,
19.1
Smaller
enterprises,
25.5
Strategi
c infrastructur
e, 20.6
European Investment Bank
Capital increase
supported activity
3
EIB financing of large research infrastructures
• Profile and Size: companies and research organisations implementing large
research infrastructures, including projects identified in the ESFRI (European
Strategy Forum on Research Infrastructures) Roadmap – No size restriction
• Ownership: public and private law bodies, or mixed entities with (partial) public
participation established in European Union Member States or Associated
Countries (i.e. Iceland, Liechtenstein, Norway, Switzerland, Israel, Turkey,
Croatia, Serbia and Moldova)
• Legal form: any legal form established under relevant national law, including
associations or foundations, provided the promoter has the legal capacity to
assume financial obligations
• Financial profile: the promoter needs to demonstrate that, on the basis of public
budgetary contributions to its operating and investment expenses, or through
cash flow generated from its regular commercial activities, it has the sustainable
capacity to service its financial obligations
• Financing products available: The ESFRI RSFF Capital Facility (InnovFin
Large Projects)
European Investment Bank
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Key Challenges in Financing Research Infrastructures
Capital and Operating Costs / Fit-for purpose
Project definition/change order process; cost
escalation/ control; time and budget; risk
management
Operating budget
Timing gaps and certainty/sufficiency of Public sector
budget commitments
GAPs in “Full Cost” financing strategy at outset,
thereby causing delays to implementation as well as
cost increases and uncertainty
European Investment Bank
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Recent EIB financings of Research Infrastructure Projects
Project Name
Country
ALPHASAT
UK
191.6
SINCROTRONE TRIESTE EXTENSION
Italy
20.0
ION BEAM APPLICATIONS
Belgium
48.7
EUROPEAN SOUTHERN OBSERVATORY E-ELT
Germany
300.0
OXFORD INSTRUMENTS R&D
Finland, Germany, UK
COOPERATION IN SCIENCE AND TECHNOLOGY (COST)
Belgium
100.0
EXTREME LIGHT INFRASTRUCTURE (ELI)
Hungary
33.0
European Investment Bank
Signed
Exposure
(EUR M)
30.8
6
Investment Plan for Europe: Context
Three strands:
1. Improved investment environment: regulatory and structural
reforms at EU and national levels for predictability, removing
obstacles, aiming at a friendlier investment environment
2. Making finance reach the real economy: enhanced EIB group-ECMS cooperation and stepped-up technical assistance / advisory
3. Mobilising finance for investment: The EFSI, via EIB group, to
better address the current shortage of (higher) risk-financing in
EU
Aim: mobilise at least €315 billion in investment across the EU
European Investment Bank
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European Fund for Strategic Investments (EFSI)
European Investment Bank
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Every piece of the puzzle counts
European Investment Bank
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Eligible sectors

Wide eligibility criteria - Operations consistent with Union
policies that support any of the following general objectives:
development of infrastructure including in transport,
telecommunications, digital and energy infrastructure;
infrastructure projects in the environment, natural resources,
urban development and social fields
research and development and innovation
investment in education and training, health, information and
communications technology
develop and modernise the energy sector, renewable energy,
security of energy supply and energy and resource efficiency;
financial support for mid-cap companies and SMEs.
EIB in charge of verifying that eligibility criteria are properly applied
European Investment Bank
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Eligible counterparts

Corporates of all sizes

Utilities

Public sector entities

SMEs (below 250 employees) or MidCaps (below 3,000
employees)

NPBs or commercial banks for intermediation

Dedicated investment platforms possible
EIB group normal “know your customer” and compliance
requirements
European Investment Bank
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Eligible operations
Commercially sound
 Economically and technically viable
 Added value (additionality)
 Investments boosting innovation, competitiveness,
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
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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
-
-
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
If in doubt, check out the EIB web page or contact the EIB InfoDesk
European Investment Bank
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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)
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
EIAH’s partner
institutions’ expertise


Network of institutions incl.
EIB Group, EC, National
Promotional Banks, etc.
Integrated collaboration
model
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Innovation Finance Advisory supports innovative projects
to gain access to EFSI and other funding sources
•
•
•
•
•
•
Project Advisory
Horizontal Activity
Improve bankability/investment
readiness
Enable earlier/ faster access to
finance
Improve framework conditions
for financing
Develop “business case” for
new financing mechanisms in
RDI sectors
•
Hydrogen Mobility Germany
Arctic Arc Testing Facility
Myrrha
European Lead Factory (ELF)
European Spallation Source
(ESS)
Global TB Vaccine Partnership
•
•
•
•
•
•
Infectious Diseases Financing
Facility (IDFF)
Circular Economy (CE)
Key Enabling Technologies
(KETs)
Bio -Economy
Strategic Energy Technology
Plan (SET Plan)
Financing options for PanEuropean RI
Web tool to guide innovative
companies
Enable maximum access to finance for innovative projects
European Investment Bank
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More information at:
www.eib.org/invest-eu
[email protected]
Tel.: +352 4379-22000
European Investment Bank
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Annex
background information
European Investment Bank
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Enablers of competitiveness: infrastructure
Annual shortfalls in infrastructure
investments
 Additional € 100bn to upgrade energy
networks to integrate renewables,
improve efficiency and ensure security of
supply
 Additional € 50bn to upgrade transport
networks to reduce congestion costs and
trade bottlenecks,
 Additional € 55bn to reach the EU’s Digital
Agenda standards in broadband and data
centre capacity,
 Additional € 90bn to rehabilitate
environmental services and ensure water
security in the face of climate change.
Examples
•
•
•
•
•
Reinforced and smarter grids
Improved interconnections
Energy efficiency of existing buildings
High-efficiency combined heat and power
Offshore wind capacity
•
•
•
•
•
Motorway reconstruction & widening
Urban bypasses
Rail corridors
New container and LNG terminals
Airport capacity and air traffic management
•
•
•
•
Fibre-based and mobile (4G) broadband
Open networks in thinly populated areas
Large and secure data centres for intra-EU IP traffic
Secure ICT applications for SMEs and public
administration
• Flood risk protection
• Water network, waste water treatment and water
efficiency
• Material recovery
European Investment Bank
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EIB provided Financing to the CERN Project
First Research Infrastructure project
financed by EIB
Signed in 2002
EIB “Bridge” Loan to cover a funding gap
of EUR300m due to cost overrun.
EIB funding maintained project momentum
and smoothed cash calls on CERN
members
EIB loan of up to EUR300m
Term: up to 15 years (7 year grace)
Security/guarantee: Public Sector
obligation of the CERN MS
Statutory Framework comprising
Establishing Convention, a Financial
Protocol and a Protocol on Privileges and
Immunities
European Investment Bank
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EIB financed the ESO- ELT Project
Financed under the RSFF- Research
Infrastructure Compartment
Signed in 2012
EIB loan to serve as bridge /contingency
loan to mainly smooth the first 6 years of
construction period
EIB funding sourced prior to construction
start
EIB loan of up to EUR300m
Term: up to 30 years
Security/guarantee: Public Sector
obligations of the ESO MS
Statutory Framework comprising
Establishing Convention, a Financial
Protocol and a Protocol on Privileges and
Immunities
European Investment Bank
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EIB provided financing to the Sincrotrone Trieste Project
Financed under the RSFF- Research
Infrastructure Compartment
Signed in 2010
EIB loan to finance upgrade and extension
of the research facility
EIB loan of up to EUR20m (i.e. 50% of the
total project costs)
Term: up to 20 years
Security/guarantee: Sufficient member state
comfort provided through contractual
arrangements in the finance contract
EIB loan to an Italian non-for-profit
consortium
Since transformation of ST into ERIC is
planned in the medium term, a non-binding
provision in the Finance Contract included to
review the potential implications of an ERIC
status for ST
European Investment Bank
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EIB currently in discussions with Spain to finance their
contributions to National Research Infrastructure Projects
 Objective:
Financing a selection of operational expenditures and capital investments by the central
government of 17 identified research Infrastructures, facilities and public research
institutes
 Contract negotiations underway
 Borrower:
Spain / Ministry of Economy and Competitiveness
 Amount:
Up to EUR 500m
 Final Beneficiaries:
Spanish partners of ESFRI projects (ELIXIR, BBMRI, ERINHA, PRACE)
Spanish nucleus for a future ERIC (PLOCAN, to become EMSO ERIC)
European Investment Bank
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What is the EFSI (European Fund for Strategic Investments)?





Legal format:
contractual arrangement EC & EIB - no separate legal entity
Partial EU guarantee in favour of EIB
All operations are EIB Group operations on EIB group
balance
EFSI governance:
Steering Board
Investment/Guarantee 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 (National Promotional Institutions, investment platforms,
private sector entities)
European Investment Bank
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InnovFin Product Overview
SMEs and small Mid-Caps
< 500 Employees
Mid-Caps
< 3,000 Employees
Large Caps
Typically > 3,000
Employees
Public & Private sector
promoters
Intermediated
SME/Mid-Cap Financing
Intermediated and/or
direct Corporate lending
Direct Corporate Lending
Financial Advisory
European Investment Bank
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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
European Investment Bank
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