1European Investment Bank 1

European Investment Bank (EIB): Cooperation with local banks to support SME and Mid-Cap investments

1st Danube Financing Dialogue - EU Strategy for the Danube Region (EUSDR) Priority Area 10

Vienna, 22nd March 2012

Peter Bandilla, Deputy Adviser, Lending in Central Europe

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Introduction on EIB

EU’s long-term lending bank set up in 1958 by the Treaty of Rome

Shareholders: 27 EU Member States

Funding on capital markets: (EUR 76 Bn in 2011)

Financial strength: AAA-Rating, voluntary application of Basle rules

Business model: “non-profit but also no loss”

Lending policy: Anti-cyclical in times of financial crisis

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EIB Lending in 2011 and Shareholdership

Lending Shareholdership

Signatures

Disbursements

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EIB Priority Objectives (within the EU)

Convergence

Trans-European Networks (TENs)

Environmental sustainability

Sustainable, competitive and secure energy

Knowledge Economy

Small and medium-sized enterprises (SMEs) and mid-cap enterprises (midcaps)

EIB loans for SMEs of EUR 10.5bn in Europe in 2011: Industry, Energy and transport and Services including tourism

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EIB Loan for SMEs

Intermediary bank with branchnetwork; other intermediaries

SME

EIB Loan for SMEs

Medium-long term loans to SMEs

SME SME SME SME

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Definition of “EIB Loan for SMEs and Mid-Caps”

SME final beneficiaries: any autonomous enterprise or group employing < 250 people

MID-CAP final beneficiaries: any autonomous enterprise or group employing < 3000 people

Investment to be financed: most investment projects costing up to EUR25 million (limited list of excluded sectors)

Financing: up to 100% of project cost or EUR 12.5 million, whichever is smaller

Term: up to economic life of project (2 years minimum, 12 years maximum)

Project cost can include: used assets, distribution networks and international expansion, long term working capital needs, SME transmission (generation change, staff buy-in; up to EUR 1 million)

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How do SMEs and Mid-Caps benefit?

Enhancing market capacity - intermediary undertakes to lend at least twice EIB Loan for SMEs and Mid-Caps( “2 x EIB” approach)

Transparency - intermediaries must inform SMEs and Mid-Caps of EIB’s presence and impact on their financing conditions:

can be done through ‘product labelling’ or direct communication

information on website

Transfer of value added - commitment by intermediaries to pass on an agreed financial advantage to the SMEs and Mid-Caps:

amount and method of transfer negotiated on a case by case basis – eg interest rate reduction, cashback at signature

reporting of method and amount of benefit transferred

Accountability - speed of allocation to SMEs and amount of benefit transferred seen as key ‘performance indicators’ by EIB

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EIB Global Loan Allocations in the Danube Region

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011

Moldavia

Slovenia

Slovakia

Serbia

Romania

Montenegro

Hungary

Czech Republic

Croatia

Bulgaria

Austria

EIB Global Loan Allocations in the Danube Region

EUR m

EUR 6.3 bn between 2007-2011 for 16,457 individual allocations (average

allocation size of EUR 385,315)

2011 was a record year with EUR 2.1 bn allocations (# 6,468)

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EIB Global Loan Partners in the Danube RegionAUSTRIA CZECH REPUBLIC HUNGARY

DEXIA KOMMUNALKREDIT BANK AG CESKA SPORITELNA AS CIB BANK ZRT

ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG CESKOMORAVSKA ZARUCNI A ROZVOJOVA BANKA AS ERSTE BANK HUNGARY ZRT

ERSTE GROUP BANK AG CSOB LEASING AS GARANTIQA HITELGARANCIA ZRT

HYPO NOE GRUPPE BANK AG KOMERCNI BANKA AS KERESKEDELMI ES HITELBANK ZRT

INVESTKREDIT BANK AG RAIFFEISENBANK AS MAGYARORSZAGI VOLKSBANK ZRT

KOMMUNALKREDIT AUSTRIA AG RAIFFEISEN LEASING REAL ESTATE SRO MFB MAGYAR FEJLESZTESI BANK ZRT

OESTERREICHISCHE HOTEL- UND TOURISMUSBANK GMBH RAIFFEISEN - LEASING SRO MKB BANK ZRT

RAIFFEISEN BANK INTERNATIONAL AG SG EQUIPMENT FINANCE CZECH REPUBLIC SRO OTP BANK NYRT

RAIFFEISENLANDESBANK NIEDEROESTERREICH-WIEN AG VOLKSBANK CZ AS RAIFFEISEN BANK ZRT

RAIFFEISENLANDESBANK OBEROESTERREICH AG SERBIA SG ESZKOEZFINANSZIROZAS MAGYARORSZAG ZRT

UNICREDIT BANK AUSTRIA AG EFG LEASING AD BEOGRAD SG ESZKOEZLIZING MAGYARORSZAG KFT

UNICREDIT LEASING (AUSTRIA) GMBH EUROBANK EFG AD BEOGRAD SG JARMUFINANSZIROZAS MAGYARORSZAG ZRT

BULGARIA HYPO ALPE-ADRIA-LEASING DOO BEOGRAD UNICREDIT BANK HUNGARY ZRT

BULGARIAN DEVELOPMENT BANK AD KBC BANKA AD UNICREDIT LEASING HUNGARY

CIBANK JSC PROCREDIT BANK AD BEOGRAD SLOVENIA

EUROBANK EFG BULGARIA AD RAIFFEISEN BANK KOSOVO JSC BANKA CELJE DD

PROCREDIT BANK (BULGARIA) AD RAIFFEISEN LEASING DOO BANKA KOPER DD

RAIFFEISENBANK (BULGARIA) EAD REPUBLIC OF SERBIA GORENJSKA BANKA DD KRANJ

RAIFFEISEN LEASING BULGARIA OOD SOGELEASE SRBIJA DOO NOVA LJUBLJANSKA BANKA DD

REGIONAL URBAN DEVELOPMENT FUND JSC UNICREDIT BANK SRBIJA AD SID

SOCIETE GENERALE EXPRESSBANK UNICREDIT LEASING SRBIJA DOO BEOGRAD SKB BANKA DD LJUBLJANA

SOGELEASE BULGARIA EOOD UNICREDIT RENT DOO UNICREDIT LEASING DOO

UNICREDIT BULBANK AD SLOVAKIA MOLDAVIA

CROATIA CESKOSLOVENSKA OBCHODNA BANKA AS SOCIETE GENERALE

ERSTE & STEIERMAERKISCHE BANK DD CSOB LEASING AS UKRAINE

HRVATSKA BANKA ZA OBNOVU I RAZVITAK SLOVENSKA ZARUCNA A ROZVOJOVA BANKA AS BANK GOSPODARSTWA KRAJOWEGO

PRIVREDNA BANKA ZAGREB DD UNICREDIT BANK SLOVAKIA AS ROMANIA

RAIFFEISENBANK AUSTRIA DD VOLKSBANK SLOVENSKO AS BANCA COMERCIALA CARPATICA SA

RAIFFEISEN LEASING DOO VSEOBECNA UVEROVA BANKA AS BANCA COMERCIALA ROMANA SA

UNICREDIT LEASING CROATIA DOO MONTENEGRO BANCPOST SA

ZAGREBACKA BANKA DD FIRST FINANCIAL BANK AD PODGORICA BRD SOGELEASE IFN SA

HIPOTEKARNA BANKA AD PODGORICA EFG LEASING IFN SA

HYPO ALPE-ADRIA-BANK AD PODGORICA PROCREDIT BANK SA

UNICREDIT LEASING CORPORATION IFN SA

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EIB Global Loan Partners in the Danube Region

# GL Partners

Austria 12Bulgaria 10Croatia 7Czech Republic 9Hungary 14Montenegro 3Romania 7Serbia 12Slovakia 6Slovenia 7Moldavia 1Ukraine 1

Total 89

http://www.eib.org/projects/topics/sme/intermediaries/europe.htm

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For more information

http://www.bei.org/

info@eib.org