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Delivering on the European Fund for Strategic...
Transcript of Delivering on the European Fund for Strategic...
Investment Plan for Europe
Delivering on the European Fund for Strategic Investments (EFSI)
Natixis Infrastructures day, Paris 18 November 2015
18/11/2015 1 European Investment Bank Group
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EFSI targeted products
Continuously under development and adapted to market needs
Making a difference
•Additionality – our value added
•Address market failures or sub-optimal investment situations
•Finance operations not possible to same extent without EFSI-
backing
•Absorb part of the risk to trigger additional
investments
•Impact
•Attracting other sources of finance •Maximising growth
•Supporting employment creation
and retention
Additionality
• Additionality of markets • New market areas traditionally not covered by EIB • New client types typically unacceptable to EIB • Innovative ways to engage with clients including delegation
models • Additionality of products
• Higher risky projects • Long maturity beyond private sector generating residual
subordination • Direct subordinated loans • Equity transactions
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Examples of projects approved or analysed under EFSI
• Construction of hospitals under the PPP model in a country where PPP never worked. EIB provides financing and advise to set up a model that can then be replicated outside of EFSI
• Construction of a greenfield motorway with no traffic data available absorbing traffic risk and investing in non investment grade bond
• Biogas plant first of the kind transforming manure and lignocellulose crops into fertilisers and natural gas involving farmers. Environmental protection and employment in farms
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What kind of operations?
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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 and cross-border operations
Key areas
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Targeting strategic investment
• Infrastructure, including transport, energy and digital • Education and training, health, research, development
and innovation • Expansion of renewable energy and energy and
resource efficiency • Projects in the environmental, urban development
and social fields • Support for SMEs and midcaps
EFSI scoreboard
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Ensure EU guarantee is for projects with high added value Part of EIB due diligence (Investment Committee) Scoring of each project according to four pillars:
• Contribution to EFSI policy objectives • Quality and soundness of the project • Technical and financial contribution • Complementary indicators (additionality, macro-
economic indicators, multiplier, private finance, cooperation with National Promotional Banks, co-financing with EU, energy efficiency, climate action)
Cooperation with NPBIs
• Cooperation with NPBs is long-standing and multidimensional (advisory, staff exchanges, co-financing, funding, etc.)
• On co-financing: • Large individual projects (infrastructures and
corporate) • investment funds • Loan portfolios of smaller schemes originated by
NPBs • Enhanced dialogue to further expand modalities
(including delegated risk sharing models)
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Financing step-by-step
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EFSI will have its own governance structure that does not infringe on the governance or authority of EIB’s decision making bodies.
Steering Board (SB)
Managing Director / Deputy
(MD / DMD)
Investment Committee
(IC)
3x EC and 1x EIB Strategic / Oversight Decisions by consensus
EIB employees (W. Molterer/I. Stanova) Coordination / Reporting/EFSI external “face”
8 members + MD Members are independent experts with no affiliation to EC or
EIB Sole decision making body to approve of EC Guarantee Decision by simple majority (quorum of 5) No conflict of interest – confidentiality requirements
EFSI Governance structure
EFSI – Investment Committee approval process
EFSI business origination and execution in accordance with EIB’s prevailing policies and procedures
All operations approved by EIB’s governing bodies in the normal manner
Approval of EU Guarantee under IIW is a parallel and independent process
EIB Board of Directors Meeting
EIB Management Committee
INDIVIDUAL ASSESSMENT
BOARD PORTAL
MAX 10 BUSINESS DAYS MIN 2DAYS
EIB operations under EFSI
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EIB Board of Directors approved 34 operations under EFSI warehousing
Total EFSI financing amount of EUR 5.2bn (including debt operations and equity type)
Total expected investment generated around EUR 23.7bn 13 operations (EFSI financing EUR 1.85bn) have already been approved by the European Commission under EFSI
Total signatures amount to EUR 450m, of which EUR 125m equity type (as at 22.10.2015)
Actual EFSI multiplier can only be calculated at the end of the investment period, anticipated multiplier effect of EFSI transitional operations approved by the EIB Board is close to the target of 15
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More than just finance - investment support
Project promoters Public authorities Member States Private sector
DEMAND
Project support throughout the
project cycle Support to Financial
instruments Enhance access to finance
Existing advisory programmes and activities
European Investment Advisory Hub
(EIAH)
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
Network of institutions incl.
EIB Group, European Commission , National Promotional Banks, etc.
Integrated collaboration model
Additional advisory and technical assistance
EIAH’s partner institutions’ expertise
SUPPLY
Web content + Web portal + Support team
Acce
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A 360 degrees advisory offer
JASPERS, ELENA, EPEC, Implementation support programmes
Enhance use of EU funds
Access to finance
Access to the expertise of the Hub’s local partners
Access to new advisory services
Advisory and technical support in identification, prioritisation, preparation, structuring and implementation of investment projects
Support for projects and investments
Advisory and capacity building support in the implementation of ESIF financial instruments
fi-compass, bilateral services to Managing Authorities
Enhancement of the overall conditions for financing for public and private beneficiaries
Innovation Finance Advisory
Advisory and technical support from the Hub’s local network
Continuous development of the Hub’s advisory offer to address unmet needs
TYPE OF SUPPORT DESCRIPTION PROGRAMMES
European Investment Advisory Hub 16
Who can contact the Advisory Hub for support?
Managing Authorities
Municipalities
Public authorities
Member States
Public companies
Private companies
National Promotional Banks
& Institutions
Advisory Hub
Financial Intermediaries
European Investment Advisory Hub 17
FAQs about the Advisory Hub
What is the geo scope of the Hub? The European Union
Is the Hub linked to EFSI projects only?
No, support will not be limited to projects to be financed by EFSI (and/or the EIB)
Does the Hub provide financing? No
Who concretely delivers the advisory support provided via the Hub?
Experts of the EIB, its partner institutions and/or appointed external consultants
Is the support provided via the Hub free of charge?
In most cases, yes. A contribution may be requested from certain private beneficiaries in order to align interests and ensure ownership of results
Does the Hub have local offices? Currently the Hub operates mainly via the EIB headquarter in Luxembourg and its local offices. A network of local partner Institutions is being established
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Would you like to know more?
Consult the Hub’s advisory offer
Request support from the Hub
Contact the Hub for more info
www.eib.org/eiah
www.eib.org/eiah/contact