Innovation in public-private financing instruments the role of the EIB and of EFSI in boosting clean energy investment in 2030 Boosting the clean energy infrastructure pipeline 2020-2030: the role of National Capital Raising Plans 31 August 2016 1
WE ARE THE WORLD S LARGEST MULTILATERAL FINANCIER EIB The EU Bank WE DELIVER IMPACT WHERE IT IS NEEDED WE FOCUS ON OUR KEY PRIORITIES 2
3 ways to tackle the investment gap Investment Plan for Europe Mobilise finance for investment European Fund for Strategic Investments Cooperation with National Promotional Banks Give investment advice European Investment Advisory Hub European Investment Project Portal Create an investment friendly environment Improving the regulatory environment Structural reforms Aim: to mobilise at least 315 billion in investment across the EU 3
Mobilising new investment 4
Making a difference Our value added Addressing market failures or sub-optimal investment situations Financing operations not possible to same extent otherwise Absorbing part of the risk to trigger additional investments Impact orientation Maximising growth Supporting employment Attracting other sources of finance 5
With targeted products Continuously adapting to market needs 6
What are the loan amounts under EFSI? According to EFSI regulation no specific minimum but lending practice at EIB Group requires best use of resources Indicative values for different financing operations Long term unsecured loans: from EUR 25m Junior subordinated loans: from EUR 12m Mezzanine and equity products: from EUR 7.5m Intermediated EIB operations: various EIF lending via financial intermediaries: up to EUR 7.5m* *COSME programme: up to EUR 150,000 InnovFin initiative: up to EUR 7.5m 7
Key areas Targeting strategic public and private investment Infrastructure: including transport, energy and digital Innovation: Education and training, health, research, development and innovation Renewable energy: Expansion of renewable energy generation and support of energy and resource efficiency Environment: Projects in the environmental, urban development and social fields SMEs and midcaps: Financing support through local partner banks and institutions 8
EFSI s key novelty: more risk EIB 1.0 EIB 2.0 (EFSI) 9
Who can benefit? 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 Contact EIB Group directly via InfoDesk or relevant Operations Department www.eib.org www.eif.org 10
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 or cross-border operations 11
Combining EFSI and other funding EU Structural and Investment Fund programmes can contribute to the Investment Plan objectives and complement EFSI support These may join EFSI-supported projects where this would ensure a higher value added More information on the complementarity of structural funds and EFSI: http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/efsi_esif_c ompl_en.pdf 12
Financing step-by-step 13
SME financing under EFSI 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 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 15
Would you like to know more? Consult the Hub s advisory offer www.eib.org/eiah Request support from the Hub www.eib.org/eiah/contact Contact the Hub for more info eiah@eib.org 16
Results dashboard 17
EIB operations: the way forward Building the EFSI pipeline ongoing and of high priority Focus on business development by exploring new market segments and targeting new clients based on added value notably in terms of catalytic effect to ensure that the EFSI volume targets for the period 2015-2018 Further efforts to accelerate new products, collaboration with National Promotional Banks as well as the setting-up of Investment Platforms 18
Nord Pas de Calais Troisième Revolution Industrielle EFSI Financing amount: 20m EFSI related investment: not disclosed Equity type Dedicated Investment Fund (joint initiative Regional Council and CCI Nord), newly created Financial involvement: ERDF, CdD, EIB, Crédit Agricole Part of the 2014-2020 Operational Programme energy transition, low carbon economy 19
Ile de France: Energie Posit-if EFSI Financing amount: 100m Part of programme for EE rehabilitation of private houses in France Specialised public mixed entity (Société de Tiers Financement), newly established Providing packaged solution (technical and financial assistance) to homeowners for retrofitting 40,000 apartments Energy efficiency savings 20
Ginkgo II Land decontamination Fund, France and Belgium EFSI Financing amount: 30m EFSI related investment: not disclosed Equity type EFSI allows faster and larger set-up of the fund Decontaminated sites can not be used as security Financing backs: - State-of-the-art environmental techniques to clean toxic soil of old industrial sites in urban regions - Construction of new apartments and affordable housing 21
Beatrice Offshore: next-generation turbines for offshore wind farm, UK EFSI Financing amount: 292m EFSI related investment: 2,5bn Loan tenor: 19 years Offshore technology and market still at early stage Size of the wind farm leads to technical and financial complexity EFSI allowed EIB single largest investment in offshore wind farm EU guarantee essential to further develop and deploy offshore technology 475,000 households benefit 22
Thank you! 23