The EIB and the financing of innovation - Cotec · 2016-11-02 · Archos (2016) EUR 12m . Quasi-Equity . System Group (2016) EUR 15m Senior term loan . 27 . 27 28 . 22 21 . 19 . Creta

The EIB and the financing of innovation Madrid, 28th October 2016

European Investment Bank Group 2

The EIB

2

Larger multilateral lender in the world

Financing approx. 450 projects a year in over 160 countries

Headquartered in Luxembourg with 33 local offices

Close to 3000 staff (financial specialists, engineers, economists, social and environmental standards specialists

Largest supranational borrower in the world

Raised € 62.4 billion from capital markets in 2015

AAA rating

Subscribed capital of € 243 billion

EU’s policy-driven, long-term lending institution since 1958

Our shareholders are the 28 EU Member States

EIB lending in 2015: EUR 77.5bn (EIB signatures)


We deliver impact where it’s needed


HEALTH 9.8m people with

access to improved health services

JOBS 4.1m jobs in small

businesses

EDUCATION 1.5m students

benefiting from EIB projects

WATER 21m people

benefiting from safe drinking water

TRANSPORT 380m additional

passengers

ENERGY 2.3m households

powered by EIB projects

URBAN 3.2m people

benefiting from urban upgrades

DIGITAL 15.3m people with new or upgraded

connections

Capacity for change: innovation Europe’s R&D intensity is persistently lagging behind that of other leading economies, hampering the EU’s ability to innovate

Source: OECD

Gross domestic expenditure on R&D (in percent of GDP)

EU

US

Japan

South Korea

0

1000

2000

3000

4000

2000 2002 2004 2006 2008 2010 2012

Patent Applications (Number per 1 million inhabitants)

Source: World Intellectual Property Organization; Comparability across countries is limited due to differing patenting systems.

An additional € 130bn a year needs to be invested in R&D to meet the EU target of 3% GDP.

More than 30% less patents are filed per EU citizen than per US citizen.

EU

USA

JPN

KOR

CHN

0

1

2

3

4

2000 2002 2004 2006 2008 2010 2012


6

Historical Lending in innovation 2000-2015

2.2 bn

5.1 bn

3.6 bn

6.2 bn

7.1 bn

10.7 bn 10.9 bn

10.2 bn

12.5 bn

18.3 bn

16.5 bn

10.4 bn 9.3 bn

15.6 bn

13.4 bn

16.1 bn

18

37

27

48 45

56 57 55

73

95

95

66 76

104 108

123

0

20

40

60

80

100

120

140

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tota

l num

ber o

f ope

ratio

ns

Tota

l Len

ding

vol

ume

(EU

R m

)

Total Lending 2000-2015: EUR 168 bn

European Investment Bank Group

7

Innovation Lending 2000 - 2015

Total: EUR 168

bn

Education 33 bn 20%

Automotive & Aircraft 32 bn 19%

Telecommunications & Media 32 bn 19%

Public Sector Research 16 bn 9%

Framework & Global Loans 16 bn

9%

Manufacturing & Process Industries

15 bn 9%

Med. Tech. & Pharma 8 bn 5%

IT & Electronics 6 bn 4%

Hospitals & Health care 5 bn 3%

Energy 4 bn 2%

Science Parks & Research Infrastructure

2 bn 1% Misc.

330 m 0%

Sector breakdown


Investment Plan for Europe: context

The Investment Plan for Europe consists of three strands: 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: enhanced EIB-EC-MS cooperation on project identification (the “Project Directory”) and stepped-up technical assistance / advisory

3. Mobilising finance for investment: The EFSI, via EIB, to better address the current shortage of (higher) risk-financing in EU

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


Mobilising new investment

EFSI EIB Group


10 European Investment Bank Group

Types of deals: overview

Debt portfolio

Corporate Senior

Corporate Junior

Project Finance Senior

Project Finance Junior

Senior Debt Risk Sharing Large Innovation Projects Turnaround Financing

Credit enhancement Mezzanine / Sub-debt lending Hybrid debt Risk Sharing Contingent equity

LT senior debt

Credit enhancement Other guarantees

Product examples Equity portfolio

Indirect equity (ETP)

Direct equity-type (ETI)

Infra funds EU Co investment in projects Corner stone investor new funds

Project participation Mid cap ETI

Product examples



What kind of operations?

11

Commercially Sound

Economically Viable

Technically Viable

+ Additional EFSI Eligible Pricing

Support Growth / Jobs

Cover EU 28

Cross Border



Key areas

12

Strategic Infrastructure (Transport/Energy/Digital)

Innovation (Education/Training/Health/RDI)

Environment + Renewable Energy

SMEs / Mid-Caps



InnovFin Product Overview



InnovFin SME Guarantee


This guarantee

instrument covers

the risk related to

losses of a portfolio


InnovFin Venture Capital


TT, VC and BA Funds and co-investment Funds

focusing on companies in Early Stage

Focus on Horizon 2020 objectives

(e.g. ICT, life sciences, clean energy, technology)

Enterprises in pre-seed,

seed, start up phases (seed & A rounds included)

First 4 transactions signed as of February 2016.

Open Call for Expression of Interest until 30/09/2020

Investment size up to EUR 30m

up to 50%** of total commitments (CATALYTIC)

Pari-passu, at least 30%* investment from private

investors

* 10% in the case of BA Co-investment Funds ** Up to 70% in the case of BA Co-investment Funds, subject to conditions.


InnovFin: Mid-Cap Guarantee


EIF Financial Intermediary

Innovative Mid-Caps

3,000 employees

New Loans

50% Guarantee EUR 25m

50% loss coverage for new mid-cap loans of up to EUR 50m not covered under InnovFin SME Guarantee

Can be complemented with EIB funding (global loan)

Pari-passu sharing of risk and pricing

Full delegation to financial intermediaries

Favourable capital treatment


InnovFin Mid-Cap Growth Finance


Direct long term debt and mezzanine finance: EUR 7.5m – EUR 25m

Loans can be structured as economic equity (silent participation)

For innovative Mid-Caps and SMEs (eligible counterparty concept)

EIB can finance up to 50% of all investments over 3 years

Streamlined EIB approval process

EIF Innovative Mid-Caps

3,000 Employees

Growth Finance / Mezzanine EUR 25m


MGF transactions signed to date


16

1

2

3

4

5

6

7 8

9

10

11 13

12

16

14

17

18

20

23

Signature pipeline for Q1 2016

24

Quasi-equity

26

1

EVS (2013) EUR 12m Senior term loan

25

2

Marposs (2013) EUR 25m Senior term loan

3

Rovio (2014) EUR 25m Senior term loan

4

Manz (2014) EUR 20m Mezzanine loan

5

Pharmathen (2014) EUR 25m Senior term loan

6

Welltec (2014) EUR 25m Senior term loan

7

Pramac (2014) EUR 8m Senior term loan

8

Maier (2014) EUR 7.5m Senior term loan

9

E-Net (2014) EUR 12m Subordinated loan

Novabase (2014) EUR 14m Senior term loan

Marangoni (2014) EUR 10m Senior term loan

Innocoll (2015) EUR 25m Quasi-Equity

Saes (2015) EUR 10m Senior term loan

Planon (2015) EUR 12m Senior term loan

Kiosked (2015) EUR 15m Quasi-Equity

Danobat (2015) EUR 10m Senior term loan

Biosurfit (2015) EUR 12m Quasi-Equity

Jennewein (2015) EUR 10m Quasi-Equity

Doppelmayr (2015) EUR 25m Senior term loan

Gigaclear (2015) EUR 25m Quasi-Equity

Punch (2015) EUR 25m Senior term loan

Figeac (2015) EUR 25m Senior term loan

Qwant (2015) EUR 25m Quasi-Equity

eVision (2016) EUR 13.5m Quasi-Equity

MAM (2016) EUR 25m Senior term loan

NEWICON (2016) EUR 8m Quasi-Equity

10

11

12

15

17

18

20

23

24

26

13

14

16

19

21

22

25

15

Archos (2016) EUR 12m Quasi-Equity

System Group (2016) EUR 15m Senior term loan

27

27

28

28

22

21

19

Creta Farms (2016) EUR 15m Quasi-Equity

EFSI

29

29

Priorities


EIB in Spain

EUR 11.9bn signatures in 2015

For 12 consecutive years, Spain has been the country that receives the largest volume of EIB financing

Of which EUR 8bn to SMEs

75,000 beneficiary SMEs in Spain only in 2015

EFSI signatures in 2015 of EUR 415m

Support to R&D, gas networks, and port infrastructures

Early stage of EFSI implementation

Thank you!


Documents

The EIB and the financing of innovation - Cotec · 2016-11-02 · Archos (2016) EUR 12m . Quasi-Equity . System Group (2016) EUR 15m Senior term loan . 27 . 27 28 . 22 21 . 19 . Creta