Investment Plan for Europe

Delivering on the European Fund for

Strategic Investments (EFSI)

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Jukka Luukkanen

Head of Helsinki Office

Helsinki 12/04/2016

EIB at a Glance

We are the world’s largest

International Financial Institution

Source of funds We raise long-term funds

on the international

capital markets and as

a non-profit organisation

we pass favourable

borrowing conditions

to our clients.

1958 Established to support

long-term investments

primarily in the

European Union. We

have over 50 years’

experience in

financing sustainable

projects.

AAA-rated We’re triple-A rated by

all major rating

agencies and have a

sizeable capital of

€242.4 bn.

Shareholders Owned by the 28

Member States of

the European Union.

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The EIB Group

Providing finance and expertise for sound and

sustainable investment projects

Leading developer of risk financing

for innovative SMEs

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The EIB Group in 2015

EIB in 2015:

EUR 77.5bn

EIF in 2015:

EUR

7bn

Record for the

EIB Group:

EUR 84.5bn

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KEY PRIORITIES - 2015

ENVIRONMENT

EUR 19.6bn

INFRASTRUCTURE

EUR 18.9bn

INNOVATION

EUR 18.7bn

SME

EUR 29.2bn

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EIB LENDING IN FINLAND IN 2015

Signatures in Finland 2011- 2015 (in EUR m)

EIB lending in 2015 amounted to 0.8% of Finnish GDP (vs. 0.55% on

average in EU)

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Why an Investment Plan Europe?

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Investment & competitiveness gap

High liquidity in the market

Public budget constraints

Financial and non-financial barriers

to investment

EU Investment Plan

• EU and Member

State policy action

• EU budget guarantee

• EIB capacity to

mobilise additional

investment

3 ways to tackle the investment gap

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Aim: to mobilise at least €315 billion in investment across the EU

Support investment in

real economy

• European

Investment Advisory

Hub

• European

Investment Project

Portal

Mobilise finance for

investment

• European Fund for

Strategic Investments

• Cooperation with

National Promotional

Banks

Investment Plan for Europe

Create an investment

friendly environment

• Improving the

regulatory

environment

• Structural reforms

EFSI setup and governance

All EFSI operations are within the EIB Group (EIB&EIF)

• On the EIB’s balance sheet (no separate entity)

• Subject to standard due diligence

• EIB & EIF governing bodies approve each operation

Additional EFSI governance:

• Steering Board

• Investment Committee, headed-up by a

• Managing Director

Operations already started in spring 2015

EFSI EIB

Group

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Mobilising new investment

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Making a difference

Addressing

market failures or

sub-optimal

investment

situations

Financing

operations not

possible to same

extent otherwise

Absorbing part of

the risk to trigger

additional

investments

Our value added

Maximising

growth

Supporting

employment

Attracting other

sources of

finance

Impact orientation

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With targeted products

Continuously adapting to market needs

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Key areas

Targeting strategic public and private investment

• Infrastructure: including transport, energy and digital

• Innovation: Education and training, health, research,

development and innovation

• Renewable energy: Expansion of renewable energy generation

and support of energy and resource efficiency

• Environment: Projects in the environmental, urban development

and social fields

• SMEs and midcaps: Financing support through local partner

banks and institutions

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Who can benefit?

Corporates of all

sizes

Utilities and

public sector

entities

(non-sovereign)

SMEs

(up to 250

employees) or

midcaps

(up to 3 000)

Eligible counterparts

EIB Group directly

via InfoDesk or

relevant

Operations

Department

www.eib.org

www.eif.org

Contact

National

Promotional

Banks or other

banks for

intermediation

Dedicated

Investment

Platforms

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What kind of operations?

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 or cross-border operations

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SME financing under EFSI

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First operations financed

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Equity-type financing

for an innovative fund

EUR 75m for

investment in offshore

wind, biomass and

transmission projects

•Funding cutting-edge

steel production

facilities

•EUR 100m for

innovative and

competitive steel

products

Financing for a Finnish

bio-mill enhancement

EUR 75m introducing renewable

energy generation to

make the plant fossil

fuel free

SME guarantee

agreement

Unlocking EUR

100m of loans for

1 000 SMEs in

Bulgaria

Driving clean

energy

investment

Backing

midcap

modernisation

For more

sustainable

industries

Supporting

smaller

businesses

EIF investment in Open Ocean Fund IV

• In 2011, EIF played a crucial cornerstone role in helping a team of former MySQL founders to raise their

debut venture capital fund, Open Ocean Fund III with EUR 44.6m in total commitments.

• Fund III has performed well with promising value drivers in the unrealized portfolio (e.g. Truecaller,

Nosto Solutions, EyeEm) with blue-chip syndication partners like Atomico, Balderton Capital,

Holtzbrinck Ventures, KPCB and Sequoia.

• EIF is the largest investor in Open Ocean Fund III.

• Since EIF’s initial support in 2011, the team of Open Ocean has positioned itself as the investor of choice

for entrepreneurs in the software space whose business model relies on open source or community

components, and it is a sought-after co-investor for European and American generalist VC funds investing

in that sector.

• The specialized skillsets that the Open Ocean team brings to the entrepreneurial ecosystem are highly

appreciated by the market.

• By investing in Open Ocean IV, EIF saw an opportunity to further contribute to the consolidation of a

reputed European VC firm with a specialized focus and a key role in the development of European

software start-ups.

• Consequently, EIF made a commitment of EUR 30m at the first closing, hence allowing Open Ocean

Fund IV to reach a viable minimum closing size.

• EIF’s commitment in Open Ocean Fund IV will constitute a transaction to be reported under European

Fund for Strategic Investment (EFSI), in line with the call from the European Council of December 2014.

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EIF and Pohjola Bank sign EUR 150m InnovFin agreement for innovative

companies in Finland, Estonia, Latvia and Lithuania

• On 30 March 2016 the European Investment Fund (EIF) and

Pohjola Bank (as part of the OP Financial Group), signed a

guarantee agreement to increase lending to innovative small

and medium-sized enterprises (SMEs) and small mid-caps in

Finland, Estonia, Latvia and Lithuania

• This transaction benefits from the support of the European Fund

for Strategic Investments (EFSI)

• The new agreement will allow OP Financial Group to provide

EUR 150m of loans to innovative companies in Finland and the

Baltic states over the next 2 years.

• The loans will be supported by an EIF guarantee under the “EU

InnovFin finance for Innovators” initiative with financial backing

from the European Commission's Horizon 2020 programme.

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Results dashboard (EIB group)

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(as of 10 March)

2015 2016

2017 2018

2019 2020

30 June

2nd

deadline

for

signature

of EFSI

Operations

4 July

Deadline

for

approval of

EFSI

Operations

4 July 4 July

Entry into

force of

EFSI

Regulation

Timeline and investment period

1st

deadline

for

signature

of EFSI

operations

Investment period to achieve EUR 315bn of total investments “Extended” investment period

EFSI operations to target EUR 315bn of total investment by 2018

Actual investment period runs until 30 June 2020

Third anniversary

of signing the

EFSI Regulation

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Thank you!

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