EIB activities for SMEs:
Achievements and Challenges ahead
Romualdo Massa Bernucci
Director in charge of the
EIB SMEs Centre of Expertise
EU Access to Finance Day in Dublin 5 February 2014
2
EIB activities for SMEs
2
Structure of presentation
1. EIB products for SMEs
2. EIB SME lending results
3. New initiatives
4. Looking forward and conclusions
05/02/2014
indirect indirect
Microenterprises SMEs Mid-caps
Senior Loans /
Guarantees
Equity
Hybrid /
Mezzanine
EIF Guarantees and Securitisation
EIB Intermediated Loans
EIB Mid-cap Initiative loans &
gtees, RSFF
EIF RCR Mezzanine
for Growth
EIF Venture and Growth Capital Funds of Funds, Tech Transfer,
Business Angels
EIB Growth
Finance
Initiative EIF Microfinance
indirect/direct
Overview
EIB Group SME Product Range
3
EIF Products EIB Products
05/02/2014
• Main funding product of the EIB aiming at improving conditions and enhancing access to
finance for SMEs
• Standardized product reaching a very large and diversified number of SMEs via Financial
Intermediaries
• 3 Pillars:
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EIB Intermediated Lending: the Loan for SMEs
Transparency
• Final beneficiaries are informed of EIB involvement
Transfer of Financial
Advantage (ToFA)
• Financial intermediaries benefit from financial value added and transfer an agreed share to the final beneficiaries
Complementarity
• EIB leverage effect min. 2 times
05/02/2014
• Growth Finance Initiative (GFI) = Direct financing (loans, quasi-equity and mezzanine) for
amounts between 7.5m – 25m to innovative MidCaps
• Mid-cap Initiative (MCI) = Senior risk sharing with financial intermediaries for innovative
MidCaps
Other EIB Group financing facilities
• Other financing facilities of EIB and EIF where appropriate with the European
Commission: Guarantees and counter-guarantees (via financial intermediaries), Risk-
Sharing Finance Facility and RSFF for SMEs and small MidCaps (RSI)
5
EIB direct lending and senior risk sharing
to the benefit of innovative MidCaps
05/02/2014
6
EIB activities for SMEs:
past achievements and future products
6
Structure of presentation
1. EIB products for SMEs
2. EIB SME lending results
3. New initiatives
4. Looking forward and conclusions
05/02/2014
7
EIB SME and MidCap lending 2009-2012
and COP projections 2013 – 2016 (EU and CPCs)
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14,9
11,2 10,2
12,1
17
17.5 - 18.5 17.5 - 18.5
14.0 - 18.0
0
2
4
6
8
10
12
14
16
18
20
2009 2010 2011 2012 2013 2014 2015 2016
EU
R b
n
EIB signatures COP COP low- high range
05/02/2014
EIB support for SMES in Ireland
Allocations to SMEs
0
500
1000
1500
2000
2009 2010 2011 2012 2013
Alloc. Volume
Alloc. Volume Linear (Alloc. Volume)
0
50
100
150
200
250
2009 2010 2011 2012 2013
Nb of Allocations
Nb of Allocations Linear (Nb of Allocations)
IRELAND
2009 2010 2011 2012 2013
Total for 5 years
(2009 - 2013)
Nb
Allocs
Amount
(M EUR)
Nb
Allocs
Amount
(M EUR)
Nb
Allocs
Amount
(M EUR)
Nb
Allocs
Amount
(M EUR)
Nb
Allocs
Amount
(M EUR)
Nb
Allocs
Amount
(M EUR)
TOTAL for 2
intermediaries 16 50 141 1273 49 129 226 1755 9 8 441 3215
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EIF in Ireland
Equity, guarantees and microfinance
9
40,4
1.4
83,4
11,1
0
10
20
30
40
50
60
70
80
90
Guarantees Microfinance
EU
R M
Outstanding commitments Mobilised resources
53,4
551,5
0
100
200
300
400
500
600
Equity
EU
R M
Amount invested by EIF in SMEs through portfolio funds
Total mobilised amount, invested by portfolio funds
05/02/2014
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EIB activities for SMEs:
past achievements and future products
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Structure of presentation
1. EIB products for SMEs
2. EIB SME lending results
3. New initiatives
4. Looking forward and conclusions
05/02/2014
11
“Investing for Youth” Initiative
EUR 6bn of lending to contribute to the EU effort in H2 2013
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Support youth employment by improving access to
finance for SMEs:
PHASE 1: allocations in EU regions with high youth unemployment (EUR 4.5bn in H2
2013)
PHASE 2: dedicated loan tranches at improved interest rate (EUR 216m in H2 2013)
PHASE 3: blending EIB operations with EU grant funds
“Jobs for
Youth”
Overview
Enhance employability via targeting projects focused on:
Education infrastructure & facilities
Vocational training programmes
Student finance
“Investing
in skills”
Overview
05/02/2014
EIB SME Trade Finance Facility
12 12
Aiming at revitalising the trade finance market for SMEs and
MidCaps in Greece
EIB provides its AAA guarantee to cover 85% of the risk of
international trade transactions undertaken by Greek Banks
EUR 150m approved in 2013 out of the EUR 500m dedicated to
this initiative
Background
Overview
05/02/2014
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EIB activities for SMEs
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Structure of presentation
1. EIB products for SMEs
2. EIB SME lending results
3. New initiatives
4. Looking forward and conclusions
05/02/2014
• Ensure continued availability of financing for SMEs through banking partners
• Maintain and improve impact of EIB finance on SME final beneficiaries - transfer of financial advantage, tenor of sub-lending
• Continued development of risk-sharing activities for innovative SMEs and wider ABS initiative for growth funding
• Respond to evolving EU policy priorities: youth employment, trade finance, etc.
• 2014 EIB lending to SMEs in the range of EUR 17.5 – 18.5 bn. Maintaining similar level of lending in 2015 and slightly lower in 2016
• Continue strengthening cooperation with the European Commission, Member States, national and multilateral development financing institutions, and also SME and banking associations
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Looking forward – Enhancing EIB support for
SMEs
05/02/2014
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Thank you!
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