Investment Plan for Europe

Delivering on the European Fund for

Strategic Investments (EFSI)

1 European Investment Bank Group

Jukka Luukkanen

Head of Helsinki Office 18/01/2016

EIB at a Glance

We are the world’s largest

International Financial Institution

Source of funds We raise long-term funds

on the international

capital markets and as

a non-profit organisation

we pass favourable

borrowing conditions

to our clients.

1958 Established to support

long-term investments

primarily in the

European Union. We

have over 50 years’

experience in

financing sustainable

projects.

AAA-rated We’re triple-A rated by

all major rating

agencies and have a

sizeable capital of

€242.4 bn.

Shareholders Owned by the 28

Member States of

the European Union.

2

The EIB Group

Providing finance and expertise for sound and

sustainable investment projects

Leading developer of risk financing

for innovative SMEs

3

The EIB: capital breakdown

4

EIB Impact - 2014

5

EIB in Finland

1000

1403

544

919 1039

0

200

400

600

800

1,000

1,200

1,400

1,600

2010 2011 2012 2013 2014

Signatures (EUR m)

EIB Group lending

in 2014

80.3 bn

6

Why an Investment Plan Europe?

7

Investment & competitiveness gap

High liquidity in the market

Public budget constraints

Financial and non-financial barriers

to investment

EU Investment Plan

• EU and Member

State policy action

• EU budget guarantee

• EIB capacity to

mobilise additional

investment

3 ways to tackle the investment gap

8

Aim: to mobilise at least €315 billion in investment across the EU

Support investment in

real economy

• European

Investment Advisory

Hub

• European

Investment Project

Portal

Mobilise finance for

investment

• European Fund for

Strategic Investments

• Cooperation with

National Promotional

Banks

Investment Plan for Europe

Create an investment

friendly environment

• Improving the

regulatory

environment

• Structural reforms

EFSI setup and governance

9

All EFSI operations are within the EIB Group (EIB&EIF)

• On the EIB’s balance sheet (no separate entity)

• Subject to standard due diligence

• EIB & EIF governing bodies approve each operation

Additional EFSI governance:

• Steering Board

• Investment Committee, headed-up by a

• Managing Director

Operations already started in spring 2015

EFSI EIB

Group

Mobilising new investment

10

Making a difference

11

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

Our value added

Maximising

growth

Supporting

employment

Attracting other

sources of

finance

Impact orientation

12

With targeted products

Continuously adapting to market needs

Key areas

13

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

Who can benefit?

14

Corporates of all

sizes

Utilities and

public sector

entities

(non-sovereign)

SMEs

(up to 250

employees) or

midcaps

(up to 3 000)

Eligible counterparts

EIB Group directly

via InfoDesk or

relevant

Operations

Department

www.eib.org

www.eif.org

Contact

National

Promotional

Banks or other

banks for

intermediation

Dedicated

Investment

Platforms

What kind of operations?

15

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

Opportunities for promoters/investors

16

EU Member States, National Promotional Banks, Investment

Platforms and private sector can participate in different ways :

Projects

• Co-financing/ Risk-sharing with EIB/ EIF

Investment Platforms

• Pooling of projects with thematic or geographic focus

• Agreement or Fund

• Can benefit from EU guarantee via EIB

• Cooperation with EU National Promotional Banks

Financing step-by-step

17

SME financing under EFSI

18

19

What is the Advisory Hub?

A tool to strengthen Europe's investment and business environment

A single access point to a 360 degree offer of advisory and technical assistance services

A joint initiative by the European Commission and the European Investment Bank

A cooperation platform to leverage, exchange and disseminate expertise

An instrument to assess and address unmet needs for advisory support

20

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

eiah@eib.org

www.eib.org/eiah/contact

First operations financed

21

Equity-type financing

for an innovative fund

EUR 75m for

investment in offshore

wind, biomass and

transmission projects

in Denmark

Funding cutting-edge

steel production

facilities in Italy

EUR 100m for

innovative and

competitive steel

products

Financing for a French

pioneering programme

EUR 400m to

trigger energy

efficiency investments

in private homes

SME guarantee

agreement

Unlocking EUR

100m of loans for

1 000 SMEs in

Bulgaria

Driving clean

energy

investment

Backing

midcap

modernisation

For energy

efficient

buildings

Supporting

smaller

businesses

EIF investment in Open Ocean Fund IV

22

• In 2011, EIF played a crucial cornerstone role in helping a team of former MySQL founders to raise their

debut venture capital fund, Open Ocean Fund III with EUR 44.6m in total commitments.

• Fund III has performed well with promising value drivers in the unrealized portfolio (e.g. Truecaller,

Nosto Solutions, EyeEm) with blue-chip syndication partners like Atomico, Balderton Capital,

Holtzbrinck Ventures, KPCB and Sequoia.

• EIF is the largest investor in Open Ocean Fund III.

• Since EIF’s initial support in 2011, the team of Open Ocean has positioned itself as the investor of choice

for entrepreneurs in the software space whose business model relies on open source or community

components, and it is a sought-after co-investor for European and American generalist VC funds investing

in that sector.

• The specialized skillsets that the Open Ocean team brings to the entrepreneurial ecosystem are highly

appreciated by the market.

• By investing in Open Ocean IV, EIF saw an opportunity to further contribute to the consolidation of a

reputed European VC firm with a specialized focus and a key role in the development of European

software start-ups.

• Consequently, EIF made a commitment of EUR 30m at the first closing, hence allowing Open Ocean

Fund IV to reach a viable minimum closing size.

• EIF’s commitment in Open Ocean Fund IV will constitute a transaction to be reported under European

Fund for Strategic Investment (EFSI), in line with the call from the European Council of December 2014.

Results dashboard

23

EIB operations under EFSI

24

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

2015 2016

2017 2018

2019 2020

30 June

2nd

deadline

for

signature

of EFSI

Operations

4 July

Deadline

for

approval of

EFSI

Operations

4 July 4 July

Entry into

force of

EFSI

Regulation

Timeline and investment period

1st

deadline

for

signature

of EFSI

operations

Investment period to achieve EUR 315bn of total investments “Extended” investment period

EFSI operations to target EUR 315bn of total investment by 2018

Actual investment period runs until 30 June 2020

Third anniversary

of signing the

EFSI Regulation

25

Thank you!

26