Transcript EIB Corporate presentation 2015

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The EIB Group
Providing finance and expertise for sound and
sustainable investment projects
Leading developer of risk financing
for innovative SMEs
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The EU bank
• Natural financing
partner for the EU
institutions since 1958
• Around 90% of lending
is within the EU
• Shareholders: 28 EU
Member States
Investing in Europe’s growth
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EIB Offices
• European Union
• Headquarters in Luxembourg
• 14 external offices in the EU
• Outside the European Union
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Enlargement countries: Belgrade, Istanbul, Ankara
EU Eastern neighbours: Kiev, Moscow
Mediterranean partner countries: Cairo, Tunis, Rabat
ACP and OCT: Santo Domingo, Nairobi, Sydney,
Tshwane (Pretoria), Dakar
• Asia: Beijing (2013)
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The EIB: capital breakdown
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The EIB at a glance
• Largest multilateral lender and borrower in the
world
• Raise our 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:
• Not only finance professionals, but also engineers,
sector economists and socio-environmental experts
• More than 50 years of experience in financing projects
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2013/2014 - Total lending and staffing
Peer group of MDBs
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EIB Group track record:
almost EUR 500bn lent since 2008
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EIB Group lending in 2014
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Lending outside EU in 2014: EUR 8bn
(EIB signatures)
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Our products
We help catalyse investment
LENDING
BLENDING
ADVISING
Loans
Combining EIB finance
with EU budget
(Project Bond Initiative)
Prepare & implement
projects (JASPERS)
But also:
Guarantees
(trade financing)
Higher risk projects for
innovation (InnovFin)
Support for
public/private
partnerships (EPEC)
Equity participation
Attracting FUNDING for long-term growth
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EIB project cycle
We support sound and sustainable projects
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Benefits of an EIB loan
• Benefits of low cost of funding passed on to clients:
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Large amounts
Broad range of currencies
Long maturities
Attractive interest rates
Catalyst for participation of other banking or financial
partners
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Project Requirements
Projects must:
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Meet at least one of the EIB’s objectives
Be technically sound
Be financially viable
Show an acceptable economic return
Comply with environmental protection and
procurement regulations
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European Fund for Strategic Investments (EFSI)
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Mobilising new investment
EFSI
EIB
Group
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2014 Borrowing activity
EUR 61.6bn: distribution of EIB bond issues by region
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EXTERNAL LENDING MANDATES
The role of the EIB outside the EU is to finance
investment projects in support of :
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EU policy objectives,
complementing the EU’s external assistance policies, programmes and instruments in
the different regions, and
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continuously adapting its activities to developments in EU policies
With a view to supporting EU external action, the European Parliament and of the European
Council has granted the EIB an external mandate including an EU guarantee against losses
for corresponding projects
outside the EU.
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EIB operations in
Asia
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European Investment Bank
EIB LENDING IN ASIA AND LATIN AMERICA (ALA)
A bit of History …
Operations in ALA started in 1993
Until 2006 the remit was to support EU presence through loans to:
- Subsidiaries of EU companies
- EU/ALA joint ventures
- Transfer of EU technology
EIB provided long-term financing and political risk guarantee (Risk-Sharing)
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European Investment Bank
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EIB LENDING IN ALA
Evolving objectives …
Since 2007:
• Support of EU presence
• Environmental sustainability
From 2011:
• Environmental sustainability
• Social and economic infrastructure
• Local private sector
EU Support no longer a sufficient criteria but a desirable side effect
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European Investment Bank
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EIB LENDING IN ALA
Breakdown by Activity
Global loans
16%
Agriculture, Forestry
and Fishing
8%
Industry
9%
Transports
19%
Services
2%
Energy
41%
Water, sewerage
5%
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European Investment Bank
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EIB LENDING IN ASIA
Asian Countries eligible for EIB financing under the ALA Mandate
• Asia: 22 eligible countries
Bangladesh, Bhutan, Brunei*, Cambodia, China, East Timor,
India, Indonesia, Iraq*, Laos, Malaysia*, Maldives, Mongolia,
Myanmar, Nepal, Pakistan, the Philippines, Singapore*, South
Korea*, Sri Lanka, Thailand, Vietnam, Yemen.
* No Framework Agreement signed
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European Investment Bank
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EIB LENDING IN ASIA
At end-2014, the Bank has lent:
 EUR 5.35 billion via 73 loans in 15 Asian countries
 58% to Private and 42% to Public Sector
PUBLIC
PRIVATE
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EIB LENDING IN ASIA
Country distribution
Thailand
2%
Maldives
Nepal
1%
1% Laos
1%
Mongolia
1%
Pakistan
4%
Bangladesh
4%
China
39%
Indonesia
4%
Sri Lanka
5%
Philippines
6%
Viet Nam
13%
India
19%
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European Investment Bank
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Lending in ASIA has proved lucrative:
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For EU Companies
• Long term funding at AAA conditions
• Free political risk guarantee
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For the ASIA countries
• Employment creation
• Transfer of technology
• Foreign exchange income
• Fiscal inflows
• Poverty alleviation
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European Investment Bank
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RELEVANCE OF ASIA FOR THE EIB CLIMATE CHANGE
ACTION
• By 2030 ASIA will emit more than half of the world’s GHG emissions
• ASIA includes the most vulnerable areas and the countries with
hugest renewable energy and carbon credit potential
• The unit cost of reducing GHG emissions in ASIA is much lower than
in Europe
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European Investment Bank
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EIB LENDING IN ASIA IN 2014
• In the Year 2014, the Bank has :
• Signed EUR 605m
- IREDA RENEWABLE ENERGY AND ENERGY EFFICIENCY FL
(EUR 200m)
- IIFCL ENERGY SUSTAINABILITY & CLIMATE ACTION FL (200m)
- SBI LOAN FOR SMES AND MID-CAPS (100m)
- DHAKA ENVIRONMENTALLY SUSTAINABLE WATER SUPPLY (100m)
- ULAANBAATAR WWS (50m)
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EIB LENDING IN ASIA
INDIA
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Projects signed in INDIA as of today (EUR 1,07bn)
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POWERGRID (30m)
EXIM BANK OF INDIA FRAMEWORK LOAN (150m)
VOLKSWAGEN INDIA (100m)
EXIM BANK OF INDIA CLIMATE CHANGE FL (150m)
SREI CLIMATE CHANGE FL (40m)
IREDA RENEWABLE ENERGY AND ENERGY EFFICIENCY FL
(EUR 200m)
IIFCL ENERGY SUSTAINABILITY & CLIMATE ACTION FL (200m)
SBI LOAN FOR SMES AND MID-CAPS (200m)
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The Impact of the Union Budget 2015-16 on EIB’s lending
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The Union Budget in tandem with Railway Budget seems to have laid out a well
thought out plan for the future.
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The Union Budget 2015-16 makes a clear case for pushing up public investment
whereas the Railway Budget 2015-2016 proposes a multi-pronged approach to
make Railway journey safe and secure and comfortable for passengers.
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Banking Sector:
i) Decision to incentivize credit card transactions coupled with a new law on black money will
clearly lower the social cost for unaccounted money
ii) The other positive steps include the proposal to frame a Bankruptcy Law and a Dispute
Settlement, which has been a long standing demand from Bankers.
iii) Alignment of NBFCs at par with financial institutions will allow banks to clean up their
balance sheets by selling stressed assets at an early stage.
iv)NBFCs registered with the RBI and having asset size of INR 5 bn (74.5 m EUR)and above
to be considered as financial institution‟ under SARFAESI Act, 2002, enabling them to fund
SME and mid-corporate businesses.
v) New scheme for depositors of gold to earn interest and jewellers to obtain loans on their
metal accounts.
vi) To improve governance of PSBs, FM has proposed setting up autonomous Bank Board
Bureau for helping lenders raise capital for meeting expansion needs.
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The Impact of the Union Budget 2015-16 on EIB’s lending
• Infrastructure and construction: The Union Budget 2015-16 is largely
positive for the infrastructure sector. The Budget gave infrastructure
development a boost by allocating funds to rural development activities.
Along with this, the road and railway sector was injected with an
investment to the tune of EUR 3,7bn, thereby improving the awarding
activity in the sector
• Railway Budget proposed a number of measures. It seeks resource
mobilization for higher investment, decongestion of heavy haul routes
and speeding of trains and project delivery, better passenger amenities
and safety, and to make railways a preferred mode of transport for
masses.
• Energy sector: EIB priority lending is in the clean energy sector, so the
Bank see a lot of potential. There has been a push for the renewable
power.
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Thank you!
Ms Sunita Lukkhoo
Regional Manager, South Asia
More information:
[email protected]
Tel. : +352 4379-86564
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