BEYOND THE CYCLE TO INVEST FOR THE NEXT GENERATION

Transcription

1 BEYOND THE CYCLE TO INVEST FOR THE NEXT GENERATION Tanguy DESROUSSEAUX Head of Public Sector & Infrastructure Financing for France Western Europe Department European Investment Bank Paris, May 03, /06/2018

2 Investment priorities perceived by EIB s survey Investment trends observed in the private & public sectors: strong investments in the private sector into RDI & capacity expansion reduced investments by local authorities due to budgetary constraints - pipeline for substantial infrastructure investments, especially for transport Priority investments to overcome obstacles: investment in further education & training to mitigate lack of qualified staff insufficient public transport in growing urban areas & environmental imperative - digitalization of the economy underway, requiring investment in broadband infrastructure & modernization of equipment (both private & public sectors) Specific investment objectives: improve the performance of production tools via RDI investments municipalities aim to invest more into education & healthcare - improve the energy efficiency of buildings (both private & public) 2

3 EIB response to current investment needs Sustained level of lending in France with a focus education & innovation Plan Campus & Programme Colleges Compétences et Emplois Jeunes RDI financing for mid to large caps Financing of broadband deployment by operators & local authorities Special effort to support Climate Action or adaptation Renewable energy (photovoltaic, windfarms, biogas, ) Energy efficiency of buildings (housing, education, public buildings, infrastructure) Enhance EFSI lending (Juncker Plan): New, smaller & riskier counterparts More flexible lending criteria Risk-sharing with intermediaries 3

4 1. Education DEPARTEMENT OF SEINE SAINT DENIS 240M Financing of a multi-annual investment programme in education for higher education. Programme Collèges Compétences & Emplois jeunes ( ): 13 Départements for a total lending volume of 1.3 Mrd in support of investments totaling 2.8 Mrd Plan Campus ( ): 15 universities for a total lending volume of 1.3 Mrd in support of investments totaling 3.3 Mrd 14/06/2018 4

5 2. Research, Development & Innovation ECOTITANIUM 30M First European facility for recycling and remelting aviation grade titanium metal and alloys scrap LATECOERE AEROSTRUCTURE RDI 55 M Product & process innovation related to doors, optical networks, racks and cockpits, cabin infrastructure & video systems. The project also covers the construction of a new advanced manufacturing plant in Toulouse, France SUNPARTNER TECHNOLOGIES -15 M The investment programme covers and includes 2 manufacturing lines (150,000 m2 each), enhancing integrated photovoltaic (& smart) glass capacity. 14/06/2018 5

6 3. Broadband & telecommunications NORD PAS DE CALAIS THD 184 M Design, roll-out & operation of a publicly owned fibre broadband network PIN (Public initiative network) covering areas not served by commercial operators in the ex-nord-pas-de-calais Region. TELCO 25 M Upgrade & expansion of a mobile networks (3G and 4G) in La Réunion & Mayotte, including IT system components, in order to reach 95% population within 5 years. 14/06/2018 6

7 4. Renewable energy VALECO RENEWABLE ENERGY 220 M Construction and operation of a portfolio of 8 windfarms and 2 solar photovoltaic power plants total 181MW SOREGIES ENERGY NETWORKS & RENEWABLE GENERATION 70 M Refurbishment & extension of its gas & electricity networks, implementation of smart metering system & construction of new renewable capacity. SIAH WATER TREATMENT AND SUPPLY MANAGEMENT 76 M Expansion & upgrade of a wastewater treatment plant, including production of biogas in Val d'oise. 14/06/2018 7

8 5. Energy efficiency ADESTIA EFFICACITE ENERGETIQUE LOGEMENT SOCIAL 200 M Réfurbishment (energy efficiency) of social housing units owned by 13 social housing operators (ESH) ROLAND GARROS AIRPORT REUNION 100 M Development plan , with the common objective of alleviating current congestion & accommodating future growth in traffic, increasing climate resilience (flood protection) & improving environmental and safety performance. 14/06/2018 8

9 EFSI in France France is among the top 3 countries benefitting from EFSI, 2nd in terms of approvals after Italy In 2017: 34 % of EIB s activity in France benefit from EFSI 56 new operations approved totalling 4.7 Mrd mobilising approximately 18.4 Mrd of investments Since the beginning of EFSI, 9.3 Mrd, catalysing 42.3 Mrd of investments in France Good cooperation with Secrétariat général pour l investissement (SGI) and promotional banks: Caisse des dépôts et consignations (CDC), Bpifrance and l Agence française de développement (AFD). 14/06/2018 9

10 Implementation Status EIB Group

11 EIB Loans under EFSI EFSI allows the EIB To lend to public entities without guarantees by the responsible authority To increase its support to infrastructure under Project Finance schemes with high market or construction risks (Wind parks, transport or social PPPs) To lend to riskier counterparts (75% of EIB clients under EFSI in 2017 are new to EIB) To offer longer term loans to cover for risky RDI investments To support smaller projects via riskier intermediaries To be subordinated to other investors, facilitating the crowding-in of private investors BRT project Bulles, Pas de Calais Clean bus rapid transit system Financing backs: - construction of Bus Rapid Transit System - new 41 hybrid & 6 hydrogen buses - a state-of-the art traffic management & control system EFSI supported long-term financing ensures the economic viability of the project EFSI Financing amount: 110 M EFSI related investment: 225 M

12 EFSI allows the EIB To offer risk-sharing products, new to EIB, allowing taking risks on projects financed by the intermediary, not on the intermediary With full or partial delegation on the analysis of the projects Under linked (EIB risk is on the new projects to be financed) or de-linked structure (EIB risk is on an existing portfolio of projects, offering capital relief to the intermediary to finance new projects) Can be offered to NPBs or to commercial banks Ensure crowding-in through the intermediary and at final beneficiary 12 levels EIB risk-sharing under EFSI Risk-sharing French Overseas Territory First EU/non-EU cross-border risk-sharing A risk-sharing framework for Agence Française de Développement's financing of investments in the French EU & non-eu overseas departments and territories. Targets sectors such as urban rehabilitation, environment, information & communication technology, tourism & sustainable transport. First projects: retirement home & tourist infra in French Guyana EFSI Financing amount: 180 M EFSI related investment: 1.2 Mrd

13 EIB quasi-equity under EFSI EFSI allows the EIB To support new Funds, with long term focus, or smaller Funds focusing on niche and riskier markets To offer bigger tickets facilitating and accelerating the financial closing of Funds To support Funds established in cooperation with regional authorities (blending with ESIF) To invest in Funds managed by NPBs To co-invest in parallel with existing Funds To offer loans with quasi-equity features (deeply subordinated debt) to support fast growing companies 13 Ginkgo II Land decontamination Fund, France & Belgium EFSI Financing amount: 30 M Equity Banks won t give a loan to decontaminate the land, and they won t give a loan to buy polluted land in the first place. You need equity to buy it and to carry out the project. Bruno Farber, Managing Director of Ginkgo Advisor

14 Delivery channels Access point More than just finance - investment support DEMAND Project promoters Public authorities Member States Private sector Web content + Web portal + Support team European Investment Advisory Hub (EIAH) Existing advisory programmes and activities Additional advisory and technical assistance EIAH s partner institutions expertise Project support throughout the project cycle Support to Financial Instruments Enhance access to finance New investment support also in areas relevant to the scope of EFSI (could be delivered by EIB advisory or operational teams) Identification of needs as they arise SUPPLY Network of institutions incl. EIB Group, European Commission, National Promotional Banks etc. Integrated collaboration model 14

15 Thank you! 15

16 Appendices 16

17 Financing opportunities for promoters/investors EFSI is demand driven, and will provide support for projects everywhere in the EU. There are no geographical nor sectoral quotas. Projects will be considered based on their individual merits. Eligible counterparts Corporates of all sizes Utilities and public sector entities (non-sovereign) SMEs (up to 250 employees) or midcaps (up to 3 000) National Promotional Banks or other banks for intermediation Dedicated Investment Platforms 17

18 European Fund for Strategic Investments EUR 26bn EUR 7.5bn EFSI - European Fund for Strategic Investments EUR 33.5bn Financing: EUR 100bn Final investments: EUR 500bn

19 Making a difference Additionality Value Added Address market failures or suboptimal investment situations Finance operations not possible to same extent without EFSIbacking Absorb part of the risk to trigger additional investments Attracting other sources of finance Impact Maximising growth Supporting employment creation and retention 1 9