Transcript EIB Presentation to Committee of the Regions 2 March 2015

Investment Plan for Europe
Partnership of EC and EIB to
establish the European Fund for
Strategic Investments (EFSI)
Maria Shaw-Barragan
Head of Strategy Division
Commission for Territorial Cohesion Policy and EU Budget
Committee of the Regions
Brussels, 2nd March 2015
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Investment Plan for Europe: context
The Investment Plan for Europe consists of three strands:
1. Regulatory and structural reforms at EU and national levels to
create a friendlier investment environment
2. Enhanced EIB-EC-MS cooperation on project identification
(the task force) and stepped-up technical assistance
3. The EFSI, to allow the 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
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Every piece of the puzzle counts
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Pipeline of viable projects
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Task Force EC-EIB-Member States:
• Member States were asked to identify potentially viable
projects of European relevance to be realised in the
short and medium term
Identified around 2,000 projects across Europe worth some
EUR 1.3 trillion of potential investments
• Outcome: a forward-looking and transparent pipeline of
investable projects.
• Purpose: to restore confidence and encourage investors
to invest and build expertise in Europe
No automatic financing by EC or the EIB for these projects
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What is the EFSI (European Fund for Strategic Investments)?
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Legal format:
• contractual arrangement EC & EIB - no separate legal entity
• EU guarantee in favour of EIB
• All operations are EIB Group operations
EFSI governance:
• Steering Board
• Investment Committee
• Managing Director
EIB governing bodies will approve each transaction.
EIF governing bodies approve operations in the SME Window
Possibility for third parties to participate in the EFSI in different
ways (Member States, National Promotional Banks, private
sector entities)
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European Fund for Strategic Investments (EFSI)
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Delivering on the 2013 capital increase to EIB
180 billion mobilised by March 2015, ahead of December 2015 target
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Mobilising new investment
EFSI
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Group
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Eligible sectors
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Wide eligibility criteria - Operations consistent with Union
policies that support any of the following general objectives:
• development of infrastructure including in transport,
telecommunications, digital and energy infrastructure;
infrastructure projects in the environment, natural resources,
urban development and social fields
• research and development and innovation
• investment in education and training, health, information and
communications technology
• develop and modernise the energy sector, renewable energy,
security of energy supply and energy and resource efficiency;
• financial support for mid-cap companies and SMEs.
EIB in charge of verifying that eligibility criteria are properly applied
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Eligible counterparts
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Corporates of all sizes
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Utilities
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Public sector entities
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SMEs (below 250 employees) or MidCaps (below 3,000
employees)
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NPBs or commercial banks for intermediation
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Dedicated investment platforms possible
EIB normal “know your customer” and compliance requirements
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Eligible operations
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Commercially sound
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Economically and technically viable
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Added value (additionality)
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Investments boosting employment and growth
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Bank intermediation is possible
Provide risk-bearing capacity to foster the implementation of
additional projects and to support the development of SMEs and
MidCaps
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How will the EFSI operate?
 All operations are EIB or EIF operations
 EIB and EIF normal appraisal and processes apply
 EIB governing bodies approve every operation
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If you know the EIB, get in touch with your normal contact
If you do not, 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
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SME Window
EUR 2.5bn
provided by EIB
EUR 2.5bn
guarantee cover
provided by EU
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- Accelerated and
additional financing
support to SMEs and
mid-caps
- Removing market
gap
European Investment Bank Group
EUR 75bn of
investments in
SMEs and midcaps
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Next steps
Jan. 2015
EU lawmaking
process
Operational
preparation
and
follow-up
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Agreement
on draft
Regulation
March 2015
June 2015
Fast-track
approval
by EU legislators
Mid 2018
Entry
into
force
Progress review
and further options
considered
European Investment Bank starts
activities using own resources
The EFSI is operational
Project identification continues,
also based on Task-Force report
A transparent EU project
pipeline is in place
Work starts on building
Investment Advisory Hub
The Investment Advisory Hub
starts functioning
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Q&A…
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Thank you!
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