EIB Financial Instrument Activity

Transcription

1 EIB Financial Instrument Activity Emily Smith Advisory Services April 2018 European Investment Bank Group 1

2 EIB types of support As a lender providing financing to Member States and financial intermediaries, through programme loans and through more dedicated loans to financial intermediaries and some underlying projects As a Fund of Funds managing ESIF on behalf of Managing Authorities, developing fund structures, selecting financial intermediaries and management the overall performance of the instrument As an advisor supporting Managing Authorities and financial intermediaries in the design, development and implementation of financial instruments European Investment Bank Group 2

3 London Green Fund Structure The 110m London Green Fund has committed all of its resources to projects through the 3 UDFs, attracting well over 1bn in leverage. Operational Programme LWARB (18) GLA (32) Co Investors at fund level 25 LGF (110) FEF (60) LEEF (100) GSH (212) Additional coinvestment at project level Recycling Plant Organic Waste Facility Waste-to-Energy Facility Biomass plant Public Art Gallery London Borough Cultural centre London Borough 1 Housing Association- 1 Housing Association - 2 Housing Association - 3 London Boroughs GBP 500m framework facility for London Boroughs October 2015 European Investment Bank Group 3

4 EIB DFI Mandates Crucial role on the further development of Financial Instruments during The two following initiatives increased the scope and scale of the EIB group s involvement: JESSICA supporting sustainable urban development and regeneration projects, including energy efficiency; JEREMIE developed by EIF to improve access to finance for SMEs. In period, EIB continues to contribute to the development of FI mandates in two ways I. by taking new mandates II. via joint EIB-EIF initiatives Financial Instruments Active Lithuania EUR 250m Poland 4 regions EUR 266m Italy EUR 270m Greece EUR 450m Under development Spain 2 FoFs (ca. EUR 310m) Joint Initiatives Active SME Initiative Under negotiation Smart Finance for Smart Buildings 4

5 Bilateral Advisory Supports public authorities and other stakeholders throughout the entire financial instruments life cycle in setting up and implementing bespoke financial instruments/investment platforms Carries out ex-ante assessments and feasibility studies Develops a suitable investment strategy and governance structure and provides the necessary support to get funds successfully up and running Provides support to public bodies in relation to financial intermediary selection and due diligence and in the consideration of State aid issues Facilitating circa EUR 1.5bn of EIB Group co-financing operations/mandates European Investment Bank Group 5

6 Example Assignments Fund of Funds (FoF) support in BG: MoF requested support to set up a FoF and to devise investment strategy National SME ex-ante in UK facilitating EIB lending of circa EUR 500m, combined with ESIF Ex-ante assessment for agriculture and food processing in GR Creation of social impact investment platforms in FR and SE Low carbon economy ex-ante assessments in Spain and Malta for SFSB instrument Financial intermediary selection support in Estonia, Northern Ireland and London Circular Economy Social Impact investment Low Carbon Renewable Energy RDI Venture Capital Innovative Midcaps Human ressources Environment Urban development SMEs and Microfinance Energy Efficiency Agriculture European Investment Bank Group 6

7 fi-compass capacity building platform for FIs European Investment Bank Group 7

8 Other forms of financing approaches - Investment Platforms utilizing EFSI Dedicated financing structures, co-financing or risk-sharing arrangements, channeling public and private financing from entities, to finance a number of investment projects Flexible concept With a defined geographical or sectoral/thematic scope Potential tool to use EU funds, financial instruments or national support together with EFSI to support specific policy objective Or to facilitate/organise co-financing with NPBs and other parties But they are not magic tools that would transform non-bankable projects into bankable projects The EIB needs to rely on sponsors and promoters that would set up such structure

9 Nord pas du Calais EFSI/ESIF Investment Platform Schematic overview Loan under EFSI «Prêt participatif» Up to 20m Equity Quasi-equity 37.5m CAP TRI SAS EUR 40m** Minority participation Mandate Capital 12.5m Grant for 2.5m Capital 5m ERDF 15m Co-investors Equity / Quasi-equity Senior debt Banks Total : EUR 200m* * Total cost of projects, including co-financing Other public or private investors Pari passu investors Technical support Grant for 2.5m ** The objective is to reach a total of EUR 100m thanks to new public and/or private investors