European Innovation Partnership on Raw Materials 5 December 2013 EIB Funding Possibilities Dr Eberhard Gschwindt European Investment Bank Project Department Innovative Industries
The European Investment Bank at a glance Providing finance and expertise for sound and sustainable investment projects Natural financing partner for the EU institutions EU s long-term lending bank set up in 1958 by the Treaty of Rome Shareholders: 28 EU Member States Largest multilateral lender and borrower in the world Raise our funds on the international capital markets Pass on favourable borrowing conditions to clients
The European Investment Bank: Our products LENDING BLENDING ADVISING Loans But also: Guarantees (trade financing) Equity participation Combining EIB finance with EU budget (Project Bond Initiative) Higher risk projects for innovation (RSFF, GFI) Prepare & implement projects (JASPERS) Support to public / private partnerships (EPEC) Attracting FUNDING for long-term growth
The EIB: loans signed in 2012: EUR 52.2bn
The EIB: Supporting EU policy goals Total Lending in EU (2012) : EUR 44.8 bn Economic & Social Cohesion 2.3 bn 5% Environmental Sustainability 10.1 bn 23% Increase in Growth & Employment Potential 32.3 bn 72% Competitive & Secure Energy 4.5 bn 14% Urban renewal & regeneration inc. Health 2.3 bn 7% SMEs & Mid-Caps 10.5 bn 33% EIB clients: Public sector Companies Banks TEN-T (Transport) 6 bn 18% Knowledge Economy 8.9 bn 28%
Total Signatures under Knowledge Economy 2000-2012 Financing Innovation and Skills Overall EIB activities Operations supporting European RDI activities for the period 2000-2012 (to date): The EIB extended financing to more than 600 individual RDI projects Approvals and signatures amounted to EUR 131bn and 123bn, respectively Transaction sizes have ranged from EUR 8m to EUR 600m Approximately 50% of the transactions were pure private sector investments
Promoting innovation and competitiveness of the European manufacturing industry EIB Lending to KETs
EIB Lending to KETs Total EIB 2008-2012: EUR 16.2 bn (gross)
RDI What can be financed? R&D R&D programmes (typically over 3 to 4 years); Innovation Capital expenditure related to the first commercial launch Deployment of KETs Eligible costs R&D Opex, such as personnel costs, contract research, consumables, overheads; R&D Capex, such as facilities, equipment, acquisition of tangible & intangible assets, if a prerequisite. Examples Prototypes & pilot plants; First of a kind recycling installations, First of a kind advanced processing systems, First of a kind advanced and efficient processes.
Scope of EIB financing for RDI TRL- Scheme adapted to HLG's three-pillarbridge model 1 2 3 4 5 6 7 8 9 Basic principles Technology Experimental Technology Tech valid. in Demonstration Demonstration System complete Successful observed Concept formulated proof of concept validation in lab relevant environment in relev ant environm. in operational environm. and qualified mission operations Fundamental Research Pillar 1: technological research Pillar 2: Product demonstration Pillar 3: Comp. Manufact. FP7 Basic Research Prototyping, testing, demonstrating, experimental development, piloting, market replication EIB Research Development Innovation
The EIB: capital increase Exceptional response for sustainable growth & jobs
Evolution of EIB lending activity and outlook The EUR 10bn paid-in capital increase will enable a 40% lending growth over the base signature level foreseen in the Operational Plan 2012-2014
The EIB: new EU growth and jobs initiatives Promote RDI, training and education Innovation and Skills up to EUR 15bn SME Access to Finance up to EUR 15bn Improve employment opportunities Maintain strong emphasis on Climate action Resource Efficiency up to EUR 20bn Strategic Infrastructure up to EUR 15bn Strengthen the internal market / support cohesion
Low High Risk EIB Group products Venture Capital (EIF) RSFF loans: Direct: > EUR 7.5m Indirect: < EUR 7.5m Mezzanine (venture) debt? Direct investment loans (> EUR 12.5 m) Indirect lending through «housebanks» / Global Loans (< EUR 12.5 m, incl. Risk Sharing) Small 300 m Large direct investment loans Long tenors Large Project Size
RSFF Results to date 4,500 Annual RSFF Business 2007-2013 4,187 Cumulative RSFF Business 14.9bn 4,000 Approvals 3,500 3,000 Signatures Disbursements 2,984 3,341 2,795 11.3bn 2,500 2,000 1,500 1,000 500-2,117 1,839 1,502 1,497 1,527 1,024 887 713 459 323 169 2,246 2,135 1,646 1,266 1,200 973 2007 2008 2009 2010 2011 2012 2013 2007-2013 8.7bn
RSFF Results to date 1 RSI Contracts Engineering & Industry 40% Energy 15% Research Infra. 6% 1 1 1 2 1 1 Life Science & Speciality Chemicals 22% ICT 16% 1 1 3 1 To date operations have been signed in 21 countries.
Legend: EIF Fund of Funds Approach EIB RSFF (EC) EIB Own Capital Debt PF Guarantees Funding Phases High RISK Low RSFF Vision Funding possibilities in H2020 EIB Global Loans EIB Investment Loans/Guarantees RSI: Innovative SMEs EIF Equity Fund of Funds EIB/EIF MCI RSFF GFI Direct (Co-)Investments Pure RDI Invest. Focus Mid-Caps only Av. Ticket Size: EUR 15m EIB RSFF Individual RDI Loans SIZE OF SINGLE TRANSACTION EUR 25K EUR 7.5m EUR 25m EUR 300m 2 nd Valley of Death 1 st Valley of Death Pre-seed Seed Funding Start-up / Mezzanine/Growth Commercialization / Industrialization Growth / Stability
Thank you! Dr Eberhard Gschwindt Innovative Industries Project Department Phone: (+352) 4379 84677 email: e.gschwindt@eib.org European Investment Bank 98-100, boulevard Konrad Adenauer L-2950 Luxembourg