Bucharest, 12 November 2009

Transcription

1 Hubert Cottogni Head of Regional Business Development Bucharest, 12 November 2009 JEREMIE Initiative in Central Europe This presentation was prepared by EIF. The information included in this presentation is based on figures available for September 2009 Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

2 EIF at a Glance EU specialised institution for SMEs, risk financing Venture Capital and Mezzanine (fund of funds) Structuring and Guaranteeing portfolios of SME and microfinance loans/leases Geographic Focus / Intermediaries EU 27, EFTA, Candidate Countries Distributing through Banks and Funds Staffing, Culture and Values Leading-edge modern institution Adapting to changing market conditions Attracting talented staff High standards of compliance and integrity Authorised Capital 3bn EIB: 61% EU: 29 % Fin. institutions: 9 % To be issued: 1% AAA rated 1 / 19 Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity

3 Operating Model of EIF Transformational Role of EIF Suppliers / Mandators Transformational Key Success Factors Intermediaries Own resources EIB (RCM) EC (CIP) MA (JEREMIE) MS (ERP) Funds of Funds Product development Mandate management Transaction execution Risk management Follow-up and relationship focus Commercial banks Development & Promotional banks Guarantee Institutions Fund Managers SMEs 2 / 19 VALUE ADDED

4 Capacity - VC/Mezzanine Under EIF Management at 30/06/2009 m EU Leveraged Portfolio Net Commitment 30/06/2009 (outstanding) Next 4 Years (new commitments) EIB/EIF VC& Mezzanine Leveraged Portfolio Net Commitment JEREMIE Leveraged Portfolio Net Commitment TOTAL Portfolio of Funds Net Commitment N/A N/A / 19

5 m EU Leveraged Portfolio Budgetary Resources Capacity - Guarantees/Microfinance Under EIF Management at 30/06/ /06/2009 (outstanding) Next 4 Years (new commitments) EIF Own Resources Estimated Leveraged Portfolio EIF Exposure JEREMIE Leveraged Portfolio Budgetary Resources N/A N/A / 19 TOT Leveraged Portfolio Budgetary Resources/Exposure

6 JEREMIE: the Concept Initiative of DG REGIO: Lisbon Strategy, support to SMEs, development of Entrepreneurship through financial engineering Shift from Grant approach to revolving instruments The Holding Fund concept: new, is central in JEREMIE; will invest into financial intermediaries in the field of VC, guarantees, micro-credit, etc... Tool-kit, 2008/ long term approach, flexibility, delegation to an expert 5 / 19

7 JEREMIE Concept 3rd party funding Structural Funds ERDF (& ESF) National Contribution JEREMIE is EU initiative enabling countries to create a Holding Fund using Structural Funds to finance a portfolio of Financial Engineering Instruments via selected intermediaries eg: Banks, VCs Investment Board Holding Fund («HF») Tailor made portfolio of instruments created to address Member States needs in SME Finance. Financial intermediaries SMEs 6 / 19

8 JEREMIE Phases EVALUATION 7 / 19 IMPLEMENTATION TRANSFORMING PARTS OF THE STRUCTURAL FUNDS RESSOURCES INTO FINANCIAL PRODUCTS FOR SME VIA HOLDING FUNDS DISBURSEMENT PROCESS GUARANTEE SCHEMES, LOAN SCHEMES, VENTURE CAPITAL FUNDS, MICROFINANCE PROVIDERS, TECH TRANSFER ACTIVITIES

9 Phase 1: Evaluation Evaluate market gaps in SME finance Development of a methodology By 2008, 55 evaluation studies done on request With implementation recommendations, notably in terms of amounts and priorities DG REGIO budget support Market gaps useful for State Aid clearance 8 / 19

10 9 / 19 Evaluations Map

11 Phase 2: Implementation Value in JEREMIE concept Who manages the Holding Fund once a Managing Authority decides to implement JEREMIE? EIF Or National institution (law) Or Tender (service contract) 10 / 19

12 EIF as Holding Fund Manager: Implementation Process Signature of Funding Agreement, including Investment Strategy decided by Member State Appointment by Government of a Steering Committee / Investment Board Establishment of EIF local office Calls for Expression of Interest by instrument, to select Financial Intermediaries (banks, VC firms etc.) Due diligence Conclusion of contracts with Financial Intermediaries Disbursement process (centralised) Reporting and monitoring 11 / 19

13 EIF Implementation Map 1. Greece EUR 100m 2. Romania EUR 100m 3. Latvia EUR 91.5m 4. Lithuania EUR 290m 5. Languedoc Roussillon EUR 30m 6. Campania EUR 90m 7. Slovakia EUR 121.2m 8. Cyprus EUR 20m 9. Bulgaria EUR 200m 12 / 19

14 7 Calls have been published covering the 3 product families (Risk Capital, Guarantees and Funded Risk Sharing) in Latvia, Lithuania and Languedoc-Roussillon (FR), Romania Further calls being finalised for Romania, Greece, Cyprus, Campania 13 / 19 Calls for Expression of Interest JEREMIE Implementation Status 4 Transactions approved by EIF Board: Baltcap (2x VC), Strata-Mes (Early Stage) & Imprimatur 4 FRS transactions approved by EIF Board: SEB, DnBNord, Siauliu Bankas and Swed Bank Due dil igence EIF Board Ap proval ongoing in Latvia, Lithuania, France, Romania 1 st signature in Oct.2009 (SEB Lithuania, FRS, EUR 75m) Signatures Ongoing discussions with DG REGIO on product design, regulatory framework eligibility of cost, audit principals, Cooperation with EIB Treasury Bank Risk Assessment Sharing know-how with JESSICA Products Estimated committed amounts by Dec. 2009: approx. EUR 295m Forecast 2010 : approx EUR 600m

15 JEREMIE Romania Status Funding Agreement signed in February 2008 (came into force in July 2008) Allocation of EUR 100m from the Sectoral Operational Programme Increase of Economic Competitiveness Holding Fund established as a separate block of finance within EIF Investment Strategy provides for: Support of SME lending through guarantees (65%) Support of venture capital sector (35%) Call for expression of interest for a portfolio guarantee instrument just closed, applicants undergoing eligibility screening Equity instrument under preparation, to be launched in Q / 19

16 JEREMIE Bulgaria Status Funding Agreement signed in May 2009 (came into force in June 2009) Allocation of EUR 200m from the Operational Programme Development of Competitiveness of Bulgarian Economy Holding Fund to be established as a special purpose vehicle (SPV), with the participation of the Bulgarian Development Bank Outline of the Investment Strategy annexed to the Funding Agreement, including: Support of SME lending through guarantees Enhance micro-lending schemes Establish early stage/expansion equity schemes 15 / 19

17 JEREMIE Slovakia Status Framework Agreement signed in Dec 2008 To be followed by signature of Funding Agreements with the four Managing Authorities of the relevant Operational Programmes providing the funds (almost completed) These Structural Funds allocations will be co-financed by national contributions, totalling EUR 100m. 16 / 19

18 JEREMIE Campania (IT) Status Funding Agreement signed between the Region of Campania and EIF in December 2008 for 90m EUR. Investment Strategy includes: Funded Risk Sharing Product (budget: EUR 10m) aimed at bridging the market gap in the micro-credit market with target the non-bankable SMEs with emphasis on social inclusion; Guarantee Product (budget: EUR 60-70m). Call for Expressions of Interest to be published before end of / 19

19 JEREMIE Products Start-up Early stage Expansion Equity Risk Capital Debt Micro Finance / Funded Risk-Sharing Products Guarantee / Structured Portfolio Operations Quasi-equity Other instruments Participating Loans Technology Transfer Funding Mezzanine Funds Business Angels 18 / 19

20 Contact European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Hubert Cottogni Tel.: (+352) Fax: (+352) / 19