17 January 2017Luxembourg

EIB’s External Lending Activity

Maria Shaw-Barragan Lending Operations DirectorateEuropean Investment Bank

European Investment Bank

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EIB: the bank of the European Union

European Investment Bank

Established in 1958 by the Treaty of Rome. The shareholders of the Bank are the EU's Member States.

The largest multilateral lender and borrower in the world (Balance sheet total of EUR 571bn in 2015).

The Bank raises its resources by borrowing on the capital markets.

It passes on its favorable borrowing terms (thanks to its AAA rating) to its customers.

Some 440 projects are financed each year, in over 160 countries, with a EUR 78bn in new loans signed in 2015.

The EIB's headquarters are in Luxembourg supported by 41 local offices worldwide.

The Bank has over 2900 financial specialists, engineers, sector economists and social and environmental experts.

The EIB is the EU's bank for long-term lending operations. The EIB's remit is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1963, the EIB has also carried out operations outside the EU in support of the EU’s external policies.

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EIB activity outside the European Union

European Investment Bank

Outside the EU, the EIB:

Operating in all EU Member States and in more than 140 countries, the EIB offers a vast experience over a wide range of industries, enabling financing for both public sector and private sector projects

The Bank supports projects contributing to the economic development of countries that have signed an association or cooperation agreement with the EU

EIB lending outside the EU accounts for about 10% of its global activity (approx. EUR 8bn)

Supports:Development of the local private sector, including

SMEs

Upgrading of socio-economic infrastructure

Tackling the effects of climate change

Regional integration

Environmental sustainability

EU Foreign Direct Investment (FDI)

Provides:Loan

Grants

Guarantees

Equity Products

Innovative financial products

Technical Assistance

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Benchmark against different IFIs

European Investment Bank

EIB is the world’s largest multilateral lender and one of the world’s largest development banks

The EIB uses a range of mandates and instruments in different regions in order to maximize impact while preserving its balance sheet and AAA rating

EIB is the world’s largest multilateral provider of climate finance

2015 approvals by region of different IFIs (in USD billion)

Climate finance by IFIs: signatures in 2015 (USD bn)

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EIB’s activity outside the EU is directly contributing to the implementation of the EU’s external policies and standards around the world

Aligned with the EU Global Strategy, the New Consensus for Development and the UN 2030 Agenda for Sustainable Development (Sustainable Development Goals).

In addition to delivery on the various mandates’ objectives, the EIB adapts to and incorporates the EU and Member States’ priorities:

Activity Outside the EU – Goals

European Investment Bank

Migration/forced displacement, addressing its root causes

Response to the 2030 Agenda and to the Sustainable Development Goals

Sustainable Energy and Climate Action

Inclusive, sustainable economic growth and job creation and support

Key development drivers, including: agriculture, value-chains, digitalisation, industrialisation, urban development

Women and youth as key actors in economic growth

Private sector support and access to finance

Infrastructure as enabler for private sector investment

Regional Integration

Combining a focus on the poorer states (including fragile states) with innovative partnerships with middle income countries

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EU Mandates Outside the EU

European Investment Bank

Pre-AccessionMediterraneanEastAsia, Central Asia, Latin America (ALA)

Africa, Caribbean & Pacific (ACP)

External Lending Mandate

Cotonu Agreement

Neighborhood

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Sources of funding for operations outside the EU

European Investment Bank

• 65% FLP guarantee for sovereign and political risk

• Comprehensive guarantee by the EU Member States

EIB Own Resources lending

Guarantee

EIB Own Resources lending

Investment Facility

Climate Action & Environment Facility

Special Projects Facility

Neighbourhood, Pre-Accession & EFTA Facilities

Funding source Neighbour-hood

Africa, Caribbean,

Pacific

Latin America,

Asia, RSA

Pre-Accession /

EFTA

1. External Lending Mandate

3. EIB Own Risk

Facilities

2. Cotonou Mandate

• None: EIB off-balance sheet revolving fund

• None

• None

• None

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EIB activity outside the European Union (cont’d)

European Investment Bank

2016 Signatures* – EUR 74.9bn

European Union: EUR 67bn

Enlargement Countries and EFTA: EUR 2.9bn

Eastern Neighborhood: EUR 1.6bn

Mediterranean Countries: EUR 1.5bn

Asia and Latin America: EUR 984m

Africa, Caribbean and Pacific: EUR 765m

*Disclaimer: These figures are preliminary, unaudited and not yet published.

9European Investment Bank

Private - public split of EIB signatures 2014-16 (EUR m)

Over 50% of EIB lending activity outside the EU targets private sector final beneficiaries

EIB – Supporting EU objectives across the globe

EIB signatures by region and mandate, 2014-16 (in EUR million)

10European Investment Bank

Supporting local private sector development

Developing social and economic infrastructure

Climate action

ReM reporting – 2015 EIB activity

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