Financing opportunities for digital transport applications

DIGITAL TRANSPORT DAYS

What do we do in Transport sector?

Financing Transport Digitalisation - Digital Days 2019 @ Helsinki 2

Recent EIB lending (signed operations) some EUR 57bn per year. On average, transport projects have constituted some 15%-20% of total lending.

Note: The data is the property of the EIB. For reproduction, prior permission from the EIB is required.

2018 EIB financing

EUR56.6bn

Transport

EUR10.2bn

Operations signed in 2018

8.60%

5.70%

25.86%

30.48%

29.36%

Air

Maritime

Rail

Roads, motorways

Urban

Examples of EIB financed Digital Transport projects

Source: http://www.kapsch.net/

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Electronic Tolling System Poland (EUR 120m)

1800 charging stations across EU (EUR 40m)

Mobility Card Barcelona -Contactless ticketing & fare for all modes public transport (EUR 35m)

Puerto de Barcelona III - First semi-automated container terminal in Europe (EUR 400m)

GSM-Railway France (EUR 745m)Paris fully automated Subway -33km first phase of Line 15m

ENAV 4-Flight & Air Traffic Management (EUR 250m)

Amsterdam Airport Baggage System (EUR 350m)

Transport Digital projects are often complex to set up, tender and roll out. They are however efficient investment with relatively low CAPEX and high economical benefits.

EIB is increasing Financing in Digital Transport solutions and services

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Technology is profoundly transforming mobility.

Clean, Digital and Automated technology is rapidly being deployed across all modes of transport and lies at the heart of European Union policies.

The deployment of this innovative technology will be central to the Bank’s approach to transport in the years ahead.

EIB support Innovative Digital Transport projects- New mobility services SMEs/Midcaps- Public Transport smart payment & ticketing- Rail Digital services projects, including ERTMS- Digital Platform for Logistics & Multimodal mobility- Inland Waterways Information Systems (RIS) - Road e-infrastructure projects including ITS and C-ITS- Single EU Single Sky ATM (SESAR)

Projects must be technically sound and financially viable

EIB started an ITS deployment maturity and financing gap assessment

EIB financing products overviewProduct Concept Eligibility Counterpart

Lending

Direct Loan individual loan to one borrower min. approx. EUR 25m

public and private entities

Programme Loan individual loans to several borrowers individual loans should be < EUR 100m

Framework loanindividual loans awarded to multiple beneficiaries through one borrower

individual loans should be < EUR 50m (but can be less)

BlendingConnecting Europe

Facility (CEF)Grants for innovation and new

technologies for transportaward is contingent on co-financing with EIB, national promotional bank or private finance

EU Member States/ promoters with support

from Member State

Advisory

European Investment Advisory Hub

Technical and financial advisory to identify, prepare and structure

investment projects in EU

Prioritise TEN-T, urban mobility, digital, climate action investments, as part of EFSI 2

investment priorities in general

public and private entities

JASPERSAdvisory support for projects / beneficiaries seeking EU grants

Infrastructure projects and their promoters seeking EU grant support

Mainly public entities

Innovation Finance Advisory

Financial advisory support to structure and accelerate financing to

innovation-related projects.

InnovFin and EFSI2 eligibilities. In transport, priority on sustainable mobility, digital solutions, climate action investments

EU and H2020 associated countries private and

public entities

ELENAgrants for technical assistance for

project developmentup to 90% of total technical assistance costs

public and private entities

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What are the benefits?• Target high risk projects, but have a

viable business model

• Long tenors and competitive pricing

• EIB also offers blending of financing and

advisory

• Quality stamp and positive signaling

effect

What is the Future Mobility?• Targets projects in the transport sector

through deployment of innovative

technologies

• A thematic financing under the CEF DebtInstrument:

→ Will mobilise private sectorinvestments in clean, digital andautomated transport technologydeployment

Eligibility

Clean mobility

Digital mobility solutions

Automated mobility

Telecom & energy

EU & TEN-T

Greenfield & Brownfield

Instrument Loans / quasi-equity /

guarantees

Financing size EUR 7.5m – EUR 25m

Tenor Up to 15 years

Covenants &

security

Transaction-specific

Jurisdiction Transaction-specific

Financing Transport Digitalisation - Digital Days 2019 @ Helsinki

Direct lending

CEF Transport Blending Facility

The CEF Transport Blending Facility is an innovative approach to promote the substantial participation of private sector investors and financial institutions in projects contributing to the environmental sustainability and efficiency of the transport sector in Europe.

Minimum CEF grant EUR 1 m

Minimum size of the loan: EUR 5m (for EIB recommended min EUR 25m)

Project implementation must be completed by 2023

The CEF Transport Blending Facility will support two areas in clean and digital transport : Deployment of the European Railway Traffic

Management System (ERTMS) Deployment of Alternative Fuels

Example of ERTMS eligibility (source: INEA)

Financing Transport Digitalisation - Digital Days 2019 @ Helsinki

EIB Technical Assistance and Advisory Services

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• Sector Studies:• Financing innovation in clean and sustainable mobility

(IFA)• Impacts of innovative transport solutions on roads

development and operation (JASPERS)• Capacity Building:

• ITS Workshops in Eastern Europe (EIAH)• ITS Guidance Note For Cities (JASPERS)• Mobility Data Guidance Note For Cities (EIB)

• Project Preparation Support:• Digital Dry Port (Italy) (EIAH)• Weigh-in-Motion (WIM) System (Ukraine) (EIB)• Sustainable and smart urban mobility (ELENA)

ITS financing maturity (source: EIB)

ELENA

European Local ENergy Assistance

Funding & Financing phases

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Funding size

(EUR m)

< 1.0m

< 7.5m

< 10m

< 25m

Project / Company development stage

Global Loans

Seed stage

First “Valley of Death”

Second “Valley of Death”

Intermediaries (Funds)

Intermediaries (Banks)

Investment Loans

Contingent Loans

Qu

asi-

equ

ity

C

o-i

nve

stm

ents

/Dir

ect

Equ

ity

Venture Capital (VCs)

VC / SME Funds

Private Equity (PE)/ MidCap Funds

Growth

H2020 & CEF

DEBTBLENDINGGRANTSFUTURE MOBILITY

EFSI

Thank you!

More information at: www.eib.org

eiah@eib.org

Tel.: +352 4379-22000