Investment Plan for Europe

Delivering on the European Fund for Strategic Investments (EFSI)

Natixis Infrastructures day, Paris 18 November 2015

18/11/2015 1 European Investment Bank Group

11

EFSI targeted products

Continuously under development and adapted to market needs

Making a difference

•Additionality – our value added

•Address market failures or sub-optimal investment situations

•Finance operations not possible to same extent without EFSI-

backing

•Absorb part of the risk to trigger additional

investments

•Impact

•Attracting other sources of finance •Maximising growth

•Supporting employment creation

and retention

Additionality

• Additionality of markets • New market areas traditionally not covered by EIB • New client types typically unacceptable to EIB • Innovative ways to engage with clients including delegation

models • Additionality of products

• Higher risky projects • Long maturity beyond private sector generating residual

subordination • Direct subordinated loans • Equity transactions

4

Examples of projects approved or analysed under EFSI

• Construction of hospitals under the PPP model in a country where PPP never worked. EIB provides financing and advise to set up a model that can then be replicated outside of EFSI

• Construction of a greenfield motorway with no traffic data available absorbing traffic risk and investing in non investment grade bond

• Biogas plant first of the kind transforming manure and lignocellulose crops into fertilisers and natural gas involving farmers. Environmental protection and employment in farms

5

What kind of operations?

14

Operations need to be:

• Commercially sound, economically and technically viable

• Underpin EFSI objectives • Support growth and jobs • Mature enough to be bankable • Priced in a manner commensurate with the risk taken • Covering EU28 countries and cross-border operations

Key areas

12

Targeting strategic investment

• Infrastructure, including transport, energy and digital • Education and training, health, research, development

and innovation • Expansion of renewable energy and energy and

resource efficiency • Projects in the environmental, urban development

and social fields • Support for SMEs and midcaps

EFSI scoreboard

13

Ensure EU guarantee is for projects with high added value Part of EIB due diligence (Investment Committee) Scoring of each project according to four pillars:

• Contribution to EFSI policy objectives • Quality and soundness of the project • Technical and financial contribution • Complementary indicators (additionality, macro-

economic indicators, multiplier, private finance, cooperation with National Promotional Banks, co-financing with EU, energy efficiency, climate action)

Cooperation with NPBIs

• Cooperation with NPBs is long-standing and multidimensional (advisory, staff exchanges, co-financing, funding, etc.)

• On co-financing: • Large individual projects (infrastructures and

corporate) • investment funds • Loan portfolios of smaller schemes originated by

NPBs • Enhanced dialogue to further expand modalities

(including delegated risk sharing models)

9

Financing step-by-step

10

EFSI will have its own governance structure that does not infringe on the governance or authority of EIB’s decision making bodies.

Steering Board (SB)

Managing Director / Deputy

(MD / DMD)

Investment Committee

(IC)

3x EC and 1x EIB Strategic / Oversight Decisions by consensus

EIB employees (W. Molterer/I. Stanova) Coordination / Reporting/EFSI external “face”

8 members + MD Members are independent experts with no affiliation to EC or

EIB Sole decision making body to approve of EC Guarantee Decision by simple majority (quorum of 5) No conflict of interest – confidentiality requirements

EFSI Governance structure

EFSI – Investment Committee approval process

EFSI business origination and execution in accordance with EIB’s prevailing policies and procedures

All operations approved by EIB’s governing bodies in the normal manner

Approval of EU Guarantee under IIW is a parallel and independent process

EIB Board of Directors Meeting

EIB Management Committee

INDIVIDUAL ASSESSMENT

BOARD PORTAL

MAX 10 BUSINESS DAYS MIN 2DAYS

EIB operations under EFSI

21

EIB Board of Directors approved 34 operations under EFSI warehousing

Total EFSI financing amount of EUR 5.2bn (including debt operations and equity type)

Total expected investment generated around EUR 23.7bn 13 operations (EFSI financing EUR 1.85bn) have already been approved by the European Commission under EFSI

Total signatures amount to EUR 450m, of which EUR 125m equity type (as at 22.10.2015)

Actual EFSI multiplier can only be calculated at the end of the investment period, anticipated multiplier effect of EFSI transitional operations approved by the EIB Board is close to the target of 15

14

More than just finance - investment support

Project promoters Public authorities Member States Private sector

DEMAND

Project support throughout the

project cycle Support to Financial

instruments Enhance access to finance

Existing advisory programmes and activities

European Investment Advisory Hub

(EIAH)

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

Network of institutions incl.

EIB Group, European Commission , National Promotional Banks, etc.

Integrated collaboration model

Additional advisory and technical assistance

EIAH’s partner institutions’ expertise

SUPPLY

Web content + Web portal + Support team

Acce

ss p

oint

De

liver

y ch

anne

ls

15

A 360 degrees advisory offer

JASPERS, ELENA, EPEC, Implementation support programmes

Enhance use of EU funds

Access to finance

Access to the expertise of the Hub’s local partners

Access to new advisory services

Advisory and technical support in identification, prioritisation, preparation, structuring and implementation of investment projects

Support for projects and investments

Advisory and capacity building support in the implementation of ESIF financial instruments

fi-compass, bilateral services to Managing Authorities

Enhancement of the overall conditions for financing for public and private beneficiaries

Innovation Finance Advisory

Advisory and technical support from the Hub’s local network

Continuous development of the Hub’s advisory offer to address unmet needs

TYPE OF SUPPORT DESCRIPTION PROGRAMMES

European Investment Advisory Hub 16

Who can contact the Advisory Hub for support?

Managing Authorities

Municipalities

Public authorities

Member States

Public companies

Private companies

National Promotional Banks

& Institutions

Advisory Hub

Financial Intermediaries

European Investment Advisory Hub 17

FAQs about the Advisory Hub

What is the geo scope of the Hub? The European Union

Is the Hub linked to EFSI projects only?

No, support will not be limited to projects to be financed by EFSI (and/or the EIB)

Does the Hub provide financing? No

Who concretely delivers the advisory support provided via the Hub?

Experts of the EIB, its partner institutions and/or appointed external consultants

Is the support provided via the Hub free of charge?

In most cases, yes. A contribution may be requested from certain private beneficiaries in order to align interests and ensure ownership of results

Does the Hub have local offices? Currently the Hub operates mainly via the EIB headquarter in Luxembourg and its local offices. A network of local partner Institutions is being established

18

Would you like to know more?

Consult the Hub’s advisory offer

Request support from the Hub

Contact the Hub for more info

www.eib.org/eiah

eiah@eib.org

www.eib.org/eiah/contact