EIB Support for Strategic Investments. EU Investment Funds Opportunities for the Regions Waterford, April 20th, 2018

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1 EIB Support for Strategic Investments EU Investment Funds Opportunities for the Regions Waterford, April 20th, 2018

2 The EIB at a glance Created 1958 and owned by EU member states Largest multilateral lender and borrower in the world We raise our funds on the international capital markets We pass on favourable borrowing conditions to clients 90% of lending is within EU. Funds some 450 projects each year (in over 160 countries) Headquartered in Luxembourg and has 40 local offices Around staff: Not only finance professionals, but also engineers, sector economists and socio-environmental experts 60 years of experience in financing projects European Investment Bank Group 20/04/2018 2

3 EIB products: We help catalyse investment LENDING BLENDING ADVISING Loans Guarantees Equity participation Combining EIB finance with EU budget Higher risk projects for innovation (InnovFin) Attracting FUNDING for long-term growth Prepare, evaluate and support the implementation of projects (Hub) Support for public/private partnerships (EPEC) 3

4 Types of EIB operations Direct Loans to the state and local authorities Funding of commercial semi-state companies Funding PPP s across a range of sectors Funding to the private sector (large and mid-cap) including innovative companies Indirect Support for SME financing through SBCI/banks Equity funds Wide tool set of EIB products and expanded risk capacity because of EFSI (the Juncker Plan) 4

5 EIB Activity in Ireland (Loans) EIB operations EUR bn Approvals Signatures Disbursements , split by transaction 8 transactions: 1 university (NUIG) 4 public sector: Children s Hospital, Cork Port and local authorities (Limerick and Fingal) 2 funding lines for SME s 1 corporate loan 5

6 Equity and Guarantees EIF EUR 88M With Innovfin support, EIF and the Strategic Banking Corporation of Ireland (SBCI), signed a counter-guarantee agreement allowing a combined 80% guarantee to lending institutions to provide EUR 300 million of loans to innovative companies in Ireland under a working capital scheme for Brexit affected companies (Lunched in March 2018 with AIB, Bank of Ireland and Ulster Bank). EIF signed an agreement with Microfinance Ireland (MFI) to support micro-entrepreneurs under the EU Programme for Employment and Social Innovation (EaSI) (EUR 30 million in loans to micro-borrowers including migrants, female, young and senior entrepreneurs over the next five years). The EIF also signed a EUR 250m extension of its COSME SME portfolio guarantee with SBCI, EUR 20 million EIF support for investment by the ACT Venture Capital Fund and EUR 5.9m across 4 equity transactions with business angels. 6

7 European Fund for Strategic Investments (EFSI) EU Guarantee EUR 16bn EIB EUR 5bn EFSI - European Fund for Strategic Investments EUR 21bn Infrastructure and Innovation Window EUR 15.5bn Deployed by EIB SME Window EUR 5.5bn Deployed by EIF Financing: EUR 61bn Final investments: EUR 315bn 7

8 European Fund for Strategic Investments to

9 Ireland Strong engagement EIB Dublin Office operational since early 2017 Strategic Dialogue with government Departments and High Level Working Groups plus excellent co-operation with state entities NTMA/NDFA, SBCI,TII, ISIF, EI, IDA etc EIB readiness to maintain high level of activities in line with Ireland s investment needs, growing population and regional development Focus on National Investment Plan and priority needs including possible Brexit response measures Deepening of cooperation with the private sector with focus on SME, Mid-cap and corporate financing including agri/food sector. 9

10 Investment environment in Ireland Economic recovery and growth but also legacy of the crisis Macro situation differs from many EU countries strong economic and population growth Particular needs related to Brexit including cross border investments Regional development Importance of inward investment but also development of indigenous economy 10

11 EIB lending in line with national priorities National Planning Framework Ireland 2040 Plan National Investment Plan 11

12 EIB Public Sector financing Luas Cross City Flood Prevention Schemes National Children s Hospital 12

13 EIB Loans with Irish Local Authorities In 2017 two transactions were were signed between EIB and Irish Local Authorities. Namely, these were: 1) EUR 85 m EIB investment loan to part-finance the 2030 urban regeneration programme of Limerick City and County Council and 2) EUR 70 m framework loan to part-finance Fingal County Council s multiyear, multi sector investment programme. 13

14 Limerick 2030 Regeneration Programme EUR 85 m Investment Loan to part-finance Project Opera, a component of Limerick City and County Council (LCCC) 2030 urban regeneration programme. The project aims to create 2,300 new work places in the centre of Limerick (offices, retail and cultural space) through the regeneration of presently vacant and dilapidated city block located in an attractive central location of the city. Economic development and generating employment opportunities are the objectives of the project. The EIB loan will contribute to accelerate the implementation of the programme. The project is going to be co-financed by the Council of Europe Bank ( CEB ). 14

15 Fingal County Council Investment Programme EUR 70 m EIB Framework loan to part-finance Fingal County Council's multi-year multi-sector investment programme originated under their Development Plan. The is intended to help improve the infrastructure of the county to cope with pressures associated with the fast-growing population as well as building on the county s attractive position as an investment destination which in turn should help create jobs and boost the local economy. The EIB financing principally focuses on eligible investments in the sectors of culture, heritage and tourism, environment and urban economic development infrastructure. Investments in road safety/sustainable mobility as well as small urban development schemes are also foreseen. All of the investments expected to be included in the Project are owned by Fingal County Council. European Investment Bank Group 15

16 Framework Loans I & II: Nationwide rollout EUR350m finance with HFA supporting EUR705m investment EIB Financing for Housing and Health PPP loans: Social Housing EUR200m finance with HFA supporting EUR405m social housing investment Primary Care Centers 14 new Primary Care Centres EIB EUR 70 million loan Looking at how affordable housing experience elsewhere can be used European Investment 16 Bank Group

17 Housing in Ireland EIB focus on social/affordable needs Capital Investment Plan Review 9/2017 Significant pressure is evident in the housing sector. Commitments made under the Action Plan for Housing and Homelessness mean that 5.35 billion will be invested in 47,000 units across a range of delivery mechanisms. Furthermore, housing output delivered by the private sector is expected to pick up over the coming years. Substantial investments expected EIB focus on social and affordable housing needs Role for variety of solutions including models successfully employed elsewhere Increase in supply to match population and demand growth Need for sustainability European Investment Bank Group 17

18 EIB Financing Education in Ireland Funding approved 7 Universities funded for academic & student accommodation facilities total of EUR 651m Schools Capital Investment Programme EUR 400m RCSI Capital Programme EUR 50m European Investment Bank Group 18

19 EIB financing to the Irish Semi States Extensive support across the Semi States 875MW CCGTs (Aghada & Whitegate) East-West Interconnector 355MW wind generation Electricity network construction and upgrade Renewable connections in SW of Ireland Forestry plantation program Airport Infrastructure Ports Infrastructure ESB, BGE EirGrid ESB, BGE ESB ESB Coillte DAA Dublin and Cork 19

20 PPPs in Ireland Strong track record Since projects financed (more than EUR 500m financings) in health, education and transport, though senior debt (Primary Care, N11, M11, N17, Irish School) and credit enhancements (N25) Pipeline/Potential Robust pipeline Grangegorman PPP signed in March 2018 consolidation of Dublin Institute of Technology campus Irish Social Housing PPP comprising the construction and operation of new social housing throughout IRL National Broadband Plan roll out of affordable high speed Fibre to the Home in rural areas Readiness to develop pipeline further European Investment Bank Group 20

21 EIB Financing for Enterprise Direct Finance Loans to Large Corporates - Vodafone Mid-Cap Program Loan to support loans of more than EUR 25m e.g. Malin Plc & Equity and loans to smaller, high-growth, innovative companies e.g. Amryt, Fineos and Aerogen Intermediated Funding small and medium-scale projects (particularly to SME) via intermediary banks e.g. SBCI Banks Direct funding to Banks (e.g. AIB & BoI) and counter guarantee support mechanisms for onward lending to SME s Funds Via EIF, implementing equity and debt financial instruments which specifically target SME e.g. microfinance Ireland and Enterprise Ireland 21

22 Case: Agri and Food Joint guarantee schemes with SBCI for lending to agri/food sector (Agri. Cash Flow support scheme and new Brexit package) Extension of the existing COSME capped guarantee in late 2017 while the launch of an EIF-EIB Brexit working capital guarantee package (EUR 300M) for SME s and agri-food producers took place in March, 2018, and is expected to be followed by an additional Brexit package offering guarantees for long term lending to SME/Agri bank lending. EIB direct lending to larger companies in the sector New: Launch of direct lending to mid caps and cooperatives New EU bio-economy initiative that aims to unlock close to EUR 1 bln of investment in the agriculture and Bio-economy sector. Guaranteed by the EU budget under the European Fund for Strategic Investments (EFSI), In a new Regulation applicable from early 2018, the scope of EFSI was extended to include a specific sectoral focus on sustainable agriculture and the wider Bio-economy. Will enable direct lending for private sector investments with a loan amount ranging from EUR 7.5 mln to EUR 50 mln. 22

23 List of transactions signed by EIB in Ireland Q3 23