podim 2017 | fueling eu growth and employment through smes

18/05/2017European Investment Bank Group 1

Providing finance and expertise for sound and sustainable investmentprojects

Leading developer of risk financing for innovative SMEs

Peter Jacobs

Head of EIB Ljubljana Office

[email protected]

EIB, the EU Bank, operating in a close partnership withthe European Commission


The EIB: capital breakdown


EIB Group financing in 2016


EUR 83.8bn

EUR 280bnTotal investment

supported

Our priorities


SMEsInfrastructureEnvironment Innovation

EUR

16.9bn

EUR

19.7bn

EUR

13.5bn

EUR

33.6bn

EIB project cycle


We support sound and sustainable projects

EIBprojectcycle

Step 1 ProposalStep 2 Appraisal

Step 3 Approval

Step 4Signature

Step 5Disbursement

Step 6 Monitoring

and reporting

Step 7 Repayment

• Financial• Economic• Social• Environmental• Technical

assessment

• EIB Management Committee

• Investment Committee(for operations potentially benefiting from an EU guarantee under EFSI)

• EIB Board of Directors

Finance contract is signed


Investment Plan for Europe(‘Juncker plan’)

Delivering on the European Fund for Strategic Investments (EFSI)

EFSI structural set-up


2015 2016 2017 2018 2019 2020

30 June

2nd

deadline for signature of

EFSI Operations

4 July

Deadline for

approval of EFSI

Operations

4 July4 July

Entry into force of

EFSI Regulation

EFSI: 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


Eligible Sectors: EFSI Regulation General Objectives

a) Research, development and innovation,

b) Development of the energy sector in accordance with the Energy Union priorities, including security of energy supply, and the 2020, 2030 and 2050 climate and energy frameworks,

c) Development of transport infrastructures, and equipment and innovative technologies for transport,

d) Financial support through the EIF and the EIB to entities having up to 3 000 employees, with a particular focus on SMEs and small mid-cap companies,

e) Development and deployment of information and communication technologies,

f) Environment and resource efficiency,

g) Human capital, culture and health.


EFSI objectives


Targeted EFSI products, both for start ups and companies withtraction


Loan amounts under EFSI


EIF products (under EFSI)through or alongside selected funds, EIF provides risk capital financing to enterprises in their pre-seed, seed, start-up and other early stage phases allowing them to set up or reach their next stage of development.


EIF products (under EFSI): equity funds

‣ Technology Transfer: targets investments into technology transfer funds focusing on the areas of key enabling technologies. It mainly invests in funds operating in the pre-seed(including proof of concept) and seed stages.

‣ Business Angels: targets investments into funds managed by business angels or co-investment funds, which invest in early-stage enterprises at regional, national or cross-border level.

‣ Venture Capital: targets investments into venture capital funds that provide funding to enterprises in their early stage operating in innovative sectors.

‣ Fund-of-Funds: targets investments into fund-of-funds which hold or target to build a portfolio of underlying investee funds with significant early stage focus.

(Equity investments often focus on innovative sectors including for example ICT, medical technologies, biotechnologies, green technologies, nanotechnologies. Aiming to address societal challenges through areas such as resource efficiency, bio-economy, health and demographics, climate change)


EIB products under EFSI


EIB products: debt and quasi equity(no rights can be derived from this exemple, purely for illustrative purposes)


EIB: debt and quasi equity growth portfolio (as of Oct 2016)



Projects under EFSI

From Czech dental clinic to university laboratory in France

23

An EIF counter-guarantee enables Czech bank CMZRB to support EUR 160 million of loans to about 1400 SMEs over two and a half years

EUR 20 m for Quadrivium 1 - the first French investment fund to provide seed fundingfor life sciences and digital technologyprojects from academia

18/05/2017European Investment Bank Group

Projects under EFSI


NovamontWorld leader in biodegradable plastics, Italy

• Financing backs:- Development of integrated supply chain - Industrial production of bioplastics and chemicals - Research that will help to create growth and jobs ( e.g. biotechnology)

• EFSI allows to support the client in a new, small and fast growing market• Client developed concept of bio refineries in abandoned industrial sites

EFSI Financing amount:

15mEFSI related investment:

93m


Ginkgo IILand decontamination Fund, France and Belgium

• Financing backs:- State-of-the-art environmental techniques to clean toxic soil of old industrial sites in urban regions- Construction of new apartments and affordable housing

• EFSI allows faster and larger set-up of the fund• Contaminated sites can not be used as security



not disclosed

Equity type


SEM Energies POSIT-IF Ile de FranceEnergy efficiency refurbishment in residential buildings, France

• Financing backs:- Energy efficient refurbishment in residential buildings (ca 75% of the buildings are condominiums or social housing apartments)- 50 to 75 % reduction of overall energy consumption of the buildings

• Market failure between what commercial banks offer and what individual owners required.

• EFSI allowed the semi-public company Energies POSIT’IF to offer financing directly to the owners.



200m


Smart Meters - Project SparkInstallation of smart gas and electricity meters, UK

• Financing backs:- Installation of smart meters, which allow for remote readings and real-time consumption information.- Improved efficiency of distribution systems (energy savings)

• Risk derives from end-users switching to a new energy supplier • EFSI allowed EIB to vastly increase the loan size



1378m


Energiepark BruckConstruction and operation of onshore wind-farms, Austria

• Financing backs:- Construction and operation of two wind parks and a single wind turbine (total capacity of 39 MW)- EU and national targets for renewable energy generation

• EFSI allows riskier lending to a shareholder, composed of a large group of small private investors and local farmers.

• Higher leverage than previously accepted by the EIB in onshore wind projects.



65m18/05/2017European Investment Bank Group 26

Rentel Offshore WindNext-Generation Turbines for Offshore Wind Farm, Belgium

• Offshore technology and market still at early stage • Use of novel turbines creates higher risks to the project• EU guarantee essential to further develop and deploy offshore technology• 219,000 households benefit



1115mLoan tenor: 20 years


Thank you!

28 18/05/2017European Investment Bank Group