the investment plan for europe european fund for strategic...
TRANSCRIPT
1
EU Investment Plan: rationale
EU investment & competitiveness gap
High liquidity in the market
Public budget constraints
Financial and non-financial barriers to investment
EU Investment Plan
EU/MS policy action + EU budget +
EIB capacity to mobilise private
sector funds towards strategic
investments.
2
The challenge of boosting investment
3,039
2,527 2,543
2,528
2,567
2,640 2,717
3,021
2,657
2,714
2,659 2,647
230
370
Gap compared to sustainable trend
2,869
"Sustainable" trend of investment assuming a share in GDP of 21-22%
2,416
2,606
4
Boost investment in strategic projects and
access to finance via the European Fund for
Strategic Investment (EFSI) – EIB/EIF
Cooperation with National Promotional Banks
and the EIB
1. MOBILISING FINANCE FOR INVESTMENT
Investment Project Portal
European Investment Advisory Hub:
technical assistance
2. MAKING FINANCE REACH THE REAL ECONOMY
Predictability and quality of regulation
Removing non-financial, regulatory barriers
in key sectors within EU Single Market
Structural reforms at national level
3. IMPROVED INVESTMENT ENVIRONMENT
EU Investment Plan: 3 pillars
5
Better and more predictable regulation at all levels Capital Markets Union Making most of the Single Market
Energy Union Digital Single Market Services Market Better implementation and enforcement
Structural reforms in the Member States Openness to international trade and investment
3. Improved investment environment
6
Building a dynamic pipeline of viable projects European Investment Project Portal Matching investment opportunities proposed by project
sponsors with investors' interest Strengthening advisory services European Investment Advisory Hub (EIAH) – EC/EIB/MS Technical assistance Pooling resources & expertise
2. Making finance reach the real economy
7
2a. European Investment Project Portal
• Bridge between EU's investment opportunities and
potential investors.
• A web portal enables EU-based project promoters (public
authorities, private, PPP) to share their investment
proposals seeking external financing, in a transparent
way.
• Investors can search for opportunities across Europe
(size, sector, geography).
• Effective form of presenting new project ideas to the
market (G20/ OECD experience).
8
2b. European Investment Advisory Hub
• A single access point to a wide range of advisory services.
• Strengthened advisory support throughout the project cycle: project identification, preparation and implementation incl. the use of financial instruments, advice on structuring and implementing public-private partnerships and facilitation of access to finance.
• A cooperation platform – a peer-to-peer exchange and sharing of know-how regarding advisory services.
The Hub: a gateway to
• Targeted advisory support for project development.
• Technical capacity building.
• Expert guidance from experienced financial & technical professionals.
• Information and knowledge sharing
The Hub seeks to improve project quality and be the reference point for project advisory support in Europe.
9
1. European Fund for Strategic Investment (EFSI)
EU guarantee € 16bn
Infrastructure & Innovation window
Long-term investments € 240 bn
SMEs and mid-cap firms € 75 bn
SME window
EFSI € 21 bn
Total over 3 years: € 315 bn
EIB financing EIF financing
€ 5bn
10
Infrastructure and Innovation window
SOURCES OF FUNDING
TYPICAL PRODUCTS OFFERED
FINAL RECIPIENTS AND TYPICAL PROJECTS
Long-term senior debt for higher
risk projects
Equity and quasi-equity
Subordinated loans
Other
investors
join in on
a project
basis
Transport infra
Energy infra Broadband
infra
Energy Resource efficiency
Renewable energy Research
Education
Innovation
SMEs
Long-term investment
funds
The Fund
serves as
credit
protection
for new EIB
activities
European Fund
for Strategic Investments
11
SMEs and mid-cap window
SOURCES OF FUNDING
TYPICAL PRODUCTS OFFERED
Guarantees European Fund
for Strategic Investments
FINAL RECIPIENTS AND PROJECT EXAMPLES
SME e.g.
micro-loans to a SME
Venture Capital
Growth finance
Securitisation
Mid-cap company
e.g. equity in a
start-up
e.g. loans for R&D project
e.g. venture
capital for a
prototype
The Fund
serves as
credit
protection
for new EIF
activities
Other
investors
join in on
a project
basis
12
Key features of EFSI /1
• Focus on investments in real economy
• Results on growth and jobs
• Market-driven, no political interference
• No geographic or sector pre-allocation
• Support to EU policies
• Leverage / crowd-in private sector and third parties
• Economic and technical viability
• Additionality vs existing instruments
• Higher risk-taking than EIB normal activity in EFSI timeframe
13
Key features of EFSI /2
• Size of investments
• EIB uses min €25m for individual loans
• Smaller schemes can be grouped into framework loans
• No size restriction for operations via Fin. Intermediaries (eg for SMEs)
• Cross-border
• Investments between a partner in MS and extending to countries in PreAccession and Neighbourhood can be covered by EFSI
14
Opportunities for promoters/investors
Projects
• Cofinancing / Risk-sharing with EIB/EIF
Investment Platforms
• Pooling of projects with thematic or geographic focus
• Agreement or Fund
• Can benefit from EU Guarantee via EIB
• Cooperation with EU National Promotional Banks High interest by institutional investors and SWFs including China
15
Contributions by MS via National Promotional Banks
Member State NPB Contribution announced (up to)
Germany KfW € 8,000m
Spain ICO € 1,500m
France CDC € 8,000m
Italy CDP € 8,000m
Luxembourg SNCI € 80m
Poland BGK/PIR € 8,000m
Slovakia SIH/SZRB € 400m
Bulgaria BDB € 100m
TOTAL € 34,080m
17
EFSI Governance
• EFSI Investment Committee (8 independent experts)
• Decisions on use of EU guarantee for each operation based on Investment guidelines
• EFSI Steering Board (EC/EIB)
• Strategic orientation
• Policy setting
• EFSI Managing Director & deputy
• Daily management
18
EIB/EIF approvals Apr-Jun 2015
Project Country Project cost
EIB/EIF financing (EFSI)
Bioscience R&D Spain € 240m € 100m
Primary care PPP Ireland € 142m € 70m
Airport expansion Croatia € 246m € 22.5m
Industry modernisation Italy € 227m € 100m
Renewable energy Denmark € 2,000m € 75m
Energy efficiency in buildings France € 800m € 400m
Gas transmission Spain € 326m € 160m
Pulp production upgrade Finland € 1,225m € 75m
Biotech/Chemical RDI Spain € 313m € 50m
Health care Austria € 110m € 60m
EIF finance for SMEs multiple € 1,400m € 450m
TOTAL € 7,019m € 1,562m (22%)
19
Status and next steps
Status
• EFSI regulation approved by EU Institutions.
• Projects already approved by EIB/EIF.
• EIAH operational.
Next steps
• Projects can be submitted to EIB/EIF for EFSI financing.
• EFSI fully operational by Sept 2015.
• Workshop(s) EC/EIB, MS, Private sector.
• European Investment Project Portal operational by end 2015.