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Investment Plan for Europe
The European Fund for Strategic Investments (EFSI) : financing for SMEs,
start-ups and many more sectors
Maria Shaw-BarraganHead of Strategy Division
Presentation in the Cyprus Funds SummitNicosia, 9 October 2015
1European Investment Bank Group
European Investment Bank Group 2
• Shareholders are the 28 Member States
• Largest multilateral lender and borrower in the world
• Raising funds on the international capital markets
• Pass on favourable borrowing conditions to clients
• Some 440 projects each year in over 160 countries
• Headquartered in Luxembourg and 30 local offices
• Around 2 400 staff: − Finance professionals, engineers, sector economists and socio-environmental experts
− More than 50 years of experience in financing projects
Introduction to the EIB: the EU bank
European Investment Bank Group 3
EIB Lending Priorities (2014 activity volumes)
* includes EIB Group support to SMEs in the EU only
European Investment Bank Group
1. Improved investment environment: regulatory and structural reforms at EU and national levels for predictability, removing obstacles, aiming at a friendlier investment environment
2. Making finance reach the real economy: stepped-up technical assistance / advisory by establishing European Investment AdvisoryHub (EIAH) in EIB and by EC facilitating a project directory
3. Mobilising finance for investment: The European Fund for Strategic Investments (EFSI), via EIB, to better address the current shortage of (higher) risk-financing in EU
Investment Plan for Europe: three strands
Aim: to mobilise at least €315 billion in investment across the EU
EFSI: setup
European Fund for Strategic Investments (EFSI)
All operations are EIB Group operations
EFSI is NOT a fund or a separate legal entity
It is a contractual arrangement between EC & EIB Group
EFSI consists of: − EUR 16bn EC guarantee in
favour of EIB− EUR 5bn capital
contribution by EIB− Target of generating EUR
315bn investment in 3 yrs
Impact-oriented operations: objective to maximise economic impact in EU through increased investments
Flexible, diverse products: adapted to client’s needs Risk-absorbing products to trigger investments with higher risk profile
(additionality) Commercially sound operations, economically and technically viable
(bankability) Maximising private finance / capital All 28 EU Member States coverage (and cross border) Focus on employment creation and retention Pricing commensurate with the risk (no subsidy) Application for EIB loan directly to EIB or EIF or EIB Group partner
institution, no separate project list / route via authority or government
EFSI: What kind of operations?
European Investment Bank Group
SOURCES OF FUNDING
TYPICAL PRODUCTS OFFERED
FINAL RECIPIENTS
AND TYPICAL PROJECTS
Long-term senior debt for higher
risk projects
Equity and quasi-equity
Subordinated loans
Other investors join in on a project
basis
Transport infra
Energy infraBroadbandinfra, ICT
Energy Resource efficiency
Renewable energy
Research
Health and Education
Innovation
SMEs
Long-term investment
funds
The Fund serves as
credit protection
for new EIB activities
European Fund for Strategic Investments
EFSI: what kind of products products ?
Urban and Social
MidCaps
European Investment Bank Group
EIB Group: helping business at every stage of their development
SME Development StagesDEVELOPMENT
Business Angels,Technology Transfer
Microcredit
VC Seed & Early Stage
Portfolio Guarantees & Credit Enhancement
VC Funds, Lower Mid-Market & Mezzanine Funds
PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH
Social Impact Funds
Public stock or capital markets
European Investment Bank Group
EFSI: how can you access it ?
All operations are EIB or EIF operations
EIB and EIF normal appraisal and processes apply
EIB governing bodies approve every operation
- If you know the EIB, get in touch with your normal contact- Nicos Yiambides ([email protected])- Go on EIB’s website and find the individual in the Operations
Department responsible for the Member State where the project is located or where your company is located
- If in doubt, check out the EIB web page or contact the InfoDesk
10European Investment Bank Group
