Delivering on the European Fund for Strategic Investments (EFSI)

Transcription

1 18/11/2015 European Investment Bank Group 1 Investment Plan for Europe Delivering on the European Fund for Strategic Investments (EFSI) Natixis Infrastructures day, Paris 18 November 2015

2 EFSI targeted products Continuously under development and adapted to market needs 11

3 Making a difference Additionality our value added Address market failures or sub-optimal 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

4 Additionality Additionality of markets New market areas traditionally not covered by EIB New client types typically unacceptable to EIB Innovative ways to engage with clients including delegation models Additionality of products Higher risky projects Long maturity beyond private sector generating residual subordination Direct subordinated loans Equity transactions 4

5 Examples of projects approved or analysed under EFSI Construction of hospitals under the PPP model in a country where PPP never worked. EIB provides financing and advise to set up a model that can then be replicated outside of EFSI Construction of a greenfield motorway with no traffic data available absorbing traffic risk and investing in non investment grade bond Biogas plant first of the kind transforming manure and lignocellulose crops into fertilisers and natural gas involving farmers. Environmental protection and employment in farms 5

6 What kind of operations? Operations need to be: Commercially sound, economically and technically viable Underpin EFSI objectives Support growth and jobs Mature enough to be bankable Priced in a manner commensurate with the risk taken Covering EU28 countries and cross-border operations 14

7 Key areas Targeting strategic investment Infrastructure, including transport, energy and digital Education and training, health, research, development and innovation Expansion of renewable energy and energy and resource efficiency Projects in the environmental, urban development and social fields Support for SMEs and midcaps 12

8 EFSI scoreboard Ensure EU guarantee is for projects with high added value Part of EIB due diligence (Investment Committee) Scoring of each project according to four pillars: Contribution to EFSI policy objectives Quality and soundness of the project Technical and financial contribution Complementary indicators (additionality, macroeconomic indicators, multiplier, private finance, cooperation with National Promotional Banks, cofinancing with EU, energy efficiency, climate action) 13

9 Cooperation with NPBIs Cooperation with NPBs is long-standing and multidimensional (advisory, staff exchanges, cofinancing, funding, etc.) On co-financing: Large individual projects (infrastructures and corporate) investment funds Loan portfolios of smaller schemes originated by NPBs Enhanced dialogue to further expand modalities (including delegated risk sharing models) 9

10 Financing step-by-step 10

11 EFSI Governance structure EFSI will have its own governance structure that does not infringe on the governance or authority of EIB s decision making bodies. Steering Board (SB) 3x EC and 1x EIB Strategic / Oversight Decisions by consensus Managing Director / Deputy (MD / DMD) EIB employees (W. Molterer/I. Stanova) Coordination / Reporting/EFSI external face Investment Committee (IC) 8 members + MD Members are independent experts with no affiliation to EC or EIB Sole decision making body to approve of EC Guarantee Decision by simple majority (quorum of 5) No conflict of interest confidentiality requirements

12 EFSI Investment Committee approval process EFSI business origination and execution in accordance with EIB s prevailing policies and procedures All operations approved by EIB s governing bodies in the normal manner Approval of EU Guarantee under IIW is a parallel and independent process INDIVIDUAL ASSESSMENT EIB Management Committee MAX 10 BUSINESS DAYS BOARD PORTAL MIN 2DAYS EIB Board of Directors Meeting

13 EIB operations under EFSI EIB Board of Directors approved 34 operations under EFSI warehousing Total EFSI financing amount of EUR 5.2bn (including debt operations and equity type) Total expected investment generated around EUR 23.7bn 13 operations (EFSI financing EUR 1.85bn) have already been approved by the European Commission under EFSI Total signatures amount to EUR 450m, of which EUR 125m equity type (as at ) Actual EFSI multiplier can only be calculated at the end of the investment period, anticipated multiplier effect of EFSI transitional operations approved by the EIB Board is close to the target of 15 21

14 More than just finance - investment support DEMAND Project promoters Public authorities Member States Private sector Access point Web content + Web portal + Support team European Investment Advisory Hub (EIAH) Delivery channels Existing advisory programmes and activities Project support throughout the project cycle Support to Financial instruments Enhance access to finance Additional advisory and technical assistance 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 EIAH s partner institutions expertise Network of institutions incl. EIB Group, European Commission, National Promotional Banks, etc. Integrated collaboration model SUPPLY 14

15 A 360 degrees advisory offer TYPE OF SUPPORT DESCRIPTION PROGRAMMES Support for projects and investments Advisory and technical support in identification, prioritisation, preparation, structuring and implementation of investment projects JASPERS, ELENA, EPEC, Implementation support programmes Enhance use of EU funds Access to finance Access to the expertise of the Hub s local partners Access to new advisory services Advisory and capacity building support in the implementation of ESIF financial instruments Enhancement of the overall conditions for financing for public and private beneficiaries Advisory and technical support from the Hub s local network Continuous development of the Hub s advisory offer to address unmet needs fi-compass, bilateral services to Managing Authorities Innovation Finance Advisory 15

16 Who can contact the Advisory Hub for support? Managing Authorities Private companies Municipalities Public authorities Advisory Hub Public companies National Promotional Banks & Institutions Member States Financial Intermediaries European Investment Advisory Hub 16

17 FAQs about the Advisory Hub What is the geo scope of the Hub? Is the Hub linked to EFSI projects only? Does the Hub provide financing? The European Union No, support will not be limited to projects to be financed by EFSI (and/or the EIB) No Who concretely delivers the advisory support provided via the Hub? Experts of the EIB, its partner institutions and/or appointed external consultants Is the support provided via the Hub free of charge? Does the Hub have local offices? In most cases, yes. A contribution may be requested from certain private beneficiaries in order to align interests and ensure ownership of results Currently the Hub operates mainly via the EIB headquarter in Luxembourg and its local offices. A network of local partner Institutions is being established European Investment Advisory Hub 17

18 Would you like to know more? Consult the Hub s advisory offer Request support from the Hub Contact the Hub for more info eiah@eib.org 18