1 European Investment Bank EUROPEAN INVESTMENT BANK Promoting European objectives EIB Financing in...

1European Investment Bank

EUROPEAN INVESTMENT BANK Promoting European objectives

EIB Financing in the Baltic Sea Region


The European Investment Bank (EIB)Long-term finance promoting European objectives

European Union’s long-term lending bank set up in 1958 by the Treaty of Rome.

Shareholders: 27 EU Member States

2009 key figures:European Union: EUR 70.5 bn

Partner countries: EUR 8.6 bn

Total lending: EUR 79.4 bn

Borrowings: EUR 79.4 bn

Subscribed capital EUR 232.4bn(at 31/12/2009)


The European Investment Bank (EIB)European Priority Objectives

Within the Union:Cohesion and convergence (“regional development”)

Small and medium-sized enterprises (SMEs)

Environmental sustainability

Promoting a competitive knowledge economy; education, RDI

Trans-European Networks (TENs)

Sustainable, competitive and secure energy

EIB in support to EU2020 objectives


EIB Lending in the Baltic Sea Region in 2007-2009(EUR m)

Signatures 2007 2008 2009

Member States

Denmark 209 379 422

Estonia - 87 842

Finland 613 710 1,145

Germany (1) 110 480 52

Latvia 35 860 285

Lithuania 20 10 1,169

Poland 2,281 2,837 4,784

Sweden 713 1,311 1,135

EFTA

Iceland 146 - 170

Norway - - -

EASTERN

Russia - - 133

Total 4,127 6,675 10,136 1)Schleswig-Holstein, Hamburg, Mecklenburg-Vorpommern


EIB Lending in Baltic Sea Region Member States

EIB lending covers all six priority objectives

Signatures EUR 6,675 m in 2008 and EUR 10,136 m in 2009

EIB borrowers are:(i) Public sector entities: Sovereign Member States, municipalities and other sub-sovereign public entities(ii) Private sector entities: leading corporates in all countries requiring financing for their capex and R&D investments(iii) Financial institutions as Intermediaries for EIB’s Loan for SMEs and Mid-Cap Loans

In Finland, Sweden, Denmark and Germany, a large proportion of EIB lending is in favour of private sector (knowledge economy and RDI)

In Estonia, Latvia, Lithuania and Poland, main emphasis is on (i) the public sector through loans to meet the national co-financing requirements for the implementation of the EU Funds supported project and (ii) major capital expenditure projects to enhance Cohesion and convergence


The European Investment Bank (EIB) Long-term Finance Promoting European Objectives

EU Funds Co-Financing Latvia (EUR 750 m, 2008/9) EU Funds Co-Financing Lithuania (EUR 1132 m, 2009) EU Funds Co-Financing Estonia (EUR 550 m, 2009)

Co-financing of national contributions to the implementation of three Operational Programmes 2007-2013 with EU funds.

Aims at sustainable development of economic competitiveness and the promotion of social and regional cohesion.

The priority projects are particularly in the sectors of transport infrastructure, RDI, environment and urban development.

EIB makes a significant contribution to finance the implementation of the Operational Programmes in

the three Baltic states


EIB Lending in the EU’s Eastern Neighbours

The EIB finances projects in Ukraine, Moldova, Armenia, Azerbaijan, Georgia and Russia on the basis of an EU mandate of EUR 3.7 billion for the period 2007-2013*EIB has signed and approved financing operations totalling over EUR 1.3 billion for major investment projects in the region in the past three years. Sectors supported: transport, telecoms, energy and environmentEastern Partners Facility -the EIB has set up a new facility for Ukraine, Moldova, Belarus, Georgia, Armenia, Azerbaijan and Russia of up to an amount of EUR 1.5 billion, with a ceiling of EUR 500 million for projects financed in Russia. The facility enables the EIB to provide loans and/or guarantees that, sector-wise, go beyond the scope of the Mandate. This should help support EU investment in the region, notably by European corporates, as well as facilitate equity investments in infrastructure funds of EU interestProjects financed in Russia under the Mandate: St. Petersburg Vodokanal III: Neva Direct Discharges Closure Programme in St. Petersburg, EUR 18 m Modernisation of Nevinnomyssk GRES power plant in Southern Russia, EUR 250 m Rollout of third-generation UMTS-based mobile broadband services, EUR 115 m

* Operations in Belarus are subject to joint EU Parliament/Council decision. Azerbaijan will also be eligible for EIB financing following the signature of the framework agreement with the Bank


The European Investment Bank (EIB) Long-term Finance Promoting European Objectives

Available EIB products/instruments

Investment Loans, suitable for large individual projects

Framework Loans, suitable for multi-scheme projects, of which Structural Programme Loans in co-funding with EU Structural Funds

Global Loans/Credit Lines, lending to financial intermediaries who on-lend to smaller projects, suitable for instance for SMEs

Technical Assistance and Financial Engineering;JASPERS, support for new Member States to help them prepare large projects applications to the Structural Funds;JEREMIE, promoting SME access to finance projects via holding funds;JESSICA, promoting urban development projects;JASMINE, support to Micro-Finance Institutions in Europe


Value-added of EIB financing

EIB financing:

Long-term senior investment loans

Financing for up to 50% of project cost (minimum project cost for a direct EIB loan approximately EUR 25 million, i.e. minimum loan EUR 12.5 million)

Long maturity matching economic life of project assets

EIB financing offers financial value-added

Sector expertise

Catalytic effect on participation of other financing partners


EIB Project Cycle


EIB Participation to EU Strategy for the Baltic Sea Region

Close co-operation with European Commission at the design and preparation phase

EIB presence in the implementation of the Strategy in close co-operation with other IFIs (notably NIB & EBRD) and organisations in the macro region

EIB operates in the macro region – extensive network

Two regional offices

Warsaw

Helsinki

JASPERS, JEREMIE and JESSICA presence in the region


The BSS Trust Fund Idea

EIB is willing to explore the potential for a BSS Trust Fund

The Trust Fund could develop TA activities in the Baltic Sea Region countries with special focus on the Flagship Projects of the EUSBSR

The Trust Fund would reinforce and complement JASPERS which mainly serves the preparation phase of projects related to Structural Funds project applications

The Trust Fund would focus on

1) Preparation of investment projects which are of importance for the EUSBSR without falling under the remit of JASPERS (e.g., because not drawing on grants from EU Structural Funds)

2) Technical support to the implementation of investment projects, whether prepared by JASPERS or not


The Establishment of the BSS Trust Fund

The Trust Fund could be established in association with the EIBIt could draw on contributions from (i) multilateral contributors, e.g., the Commission, (ii) bilateral contributors, such as EU Member States and their development agencies, (iii) other countries and their institutions and (iv) IFIs active in the BSR

The details of the Trust Fund would have to be worked out with the participating Member States and the Commission; they should be based upon cost-recovery principles compatible with EIB’s policy in relation to Trust FundsThe Trust Fund would be available for TA only, and not for investment co-financing, loan guarantee cost financing, interest rate subsidy or risk capital operationsAs the Fund Manager EIB could provide its own EIB technical and financial expertise, but could also provide assistance through hiring external consultants


For more information…

http://www.eib.org/

Jaani Pietikäinen

EIB Helsinki Office

Tel: (+358) 10 618 0830

[email protected]

http://www.eib.org/

mailto:[email protected]

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