The European Fund for Strategic Investments (EFSI)

(1)

The European Fund for Strategic

Investments (EFSI)

Europaforum Norra Sverige

Monica Peña Sastre, Policy Adviser

09.10.2015

1

(2)

EIB: The EU Bank

•

•European Investment Bank •2

Investing in Europe’s growth

 Natural financing partner

for the Members States

and EU institutions since

1958

 Around 90% of lending is

within the EU

 Shareholders: 28 EU

Member States

(3)

Lending priorities 2014 09/10/2015 European Investment Bank Group 3

(4)

EIB Group lending in 2014

09/10/2015 European

Investment

(5)

28/02/2013 _{European Investment Bank Group} 5

(6)

Examples of EIB lending in Sweden

BOLIDEN ELECTRONIC SCRAP RECYCLING

• EIB loan = EUR 85 m • Borrower: Boliden AB

• Project description: construction and commissioning of a new 75 000 t/yr electronic scrap processing plant, which will increase the supply of

recovered metals to the existing non-ferrous metals smelter. By tripling the amount of recycled e-scrap, the project will have an overall significant positive impact on the environment.

(7)

REGIONAL ROLLING STOCK MALAB

• EIB loan = SEK 1950 million (EUR 209 million)

• Total project cost = SEK 3952 million (EUR 424 million) • Borrower: AB TRANSITIO

• Project description: The project consists of the purchase of new train-sets to provide passenger services in the Stockholm-Mälaren Region. The aim of the project is to increase transport capacity and to

re-establish and re-brand a new regional train service including introduction of new timetables and new tariff systems.

(8)

FABEGE NEAR-ZERO-ENERGY BUILDINGS

• EIB loan = EUR 100 m • Borrower: Fabege AB

• Project description: Development of two large near-zero-energy-buildings (NZEB) office buildings. Fabege will use modern energy efficiency and renewable energy technologies. The buildings will be environmentally certified and their final energy consumption will be below 50 kilowatt-hours per square metre.

(9)

Investment Plan for Europe: context

9

European Investment Bank Group

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

(10)

Mobilising new investment

10

EFSI EIB Group

(11)

European Fund for Strategic Investments (EFSI)

11

(12)

Eligible sectors



_{Wide eligibility criteria - Operations consistent with Union}

policies that support any of the following general objectives:

• research and development and innovation

• develop and modernise the energy sector, renewable energy,

security of energy supply and energy and resource efficiency;

• development of transport infrastructure

• development and deployment of information and communication

technologies

• environment and resource efficiency

• human capital, culture and health

• financial support for mid-cap companies and SMEs.

European Investment Bank Group 12

(13)

Eligible operations



_{Commercially sound}



_{Economically and technically viable}



_{Added value (additionality)}



_{Investments boosting employment and growth}



Bank intermediation is possible



_{Pricing commensurate with the risk – no subsidy element}

- Typically higher risk profile than normal EIB’s normal operations

- Risk-absorbing products to foster the implementation of additional projects and to support the development of SMEs and MidCaps

(14)

Eligible counterparts



_{Corporates of all sizes}



_Utilities



_{Public sector entities (but excluding direct Member State risk)}



_{SMEs (below 250 employees) or MidCaps (below 3,000}

employees)



_{National promotional banks or other financial institutions for}

intermediation



_{Dedicated investment platforms possible}

(15)

EFSI Products

26/08/2015 European Investment Bank Group ₁₅

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 infra •Broadband infra •Energy Resource efficiency •Renewable energy •Research •Education •Innovation •SMEs •Long-term •investment funds The Fund serves as credit protection for new EIB

activities

European Fund for Strategic Investments

(16)

How will the EFSI operate?

(17)

Project promoters Public authorities Member States Private sector

 Project support (JASPERS, project preparation and implementation support)  Financial instruments

(fi-compass, bilateral services for MAs)

 Access to finance (InnovFin Advisory, EPEC, NPST)

EIB’s 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, EC, National Promotional Banks, etc.  Integrated collaboration model Additional advisory and technical assistance EIAH’s partner institutions’ expertise

•Web content + Web portal + Help Desk team

European Investment Advisory Hub (EIAH)

(18)

18

The European Fund for Strategic Investments (EFSI)