4/30/10 1 european investment bank

11/04/23 1European Investment Bank

EUROPEAN INVESTMENT BANK

Financing Investments and Growth in Difficult Times


Breakdown of the EIB’s capital


The European Investment Bank (EIB)Long-term Finance Promoting European Objectives

European Union’s long-term lending bank set up in 1958 by the Treaty of Rome.

Shareholders: 27 EU Member States

GovernanceBoard of Governors – EU Finance Ministers

Board of Directors - Member States & European Commission

Management Committee –EIB’s executive body

Audit Committee – independent, non-resident

Subsidiary: EIF (European Investment Fund)


The European Investment Bank (EIB)European Priority Objectives

Within the Union:Cohesion and convergence

Small and medium enterprises (SMEs)

Environmental sustainability

Innovation 2010 Initiative (i2i)

Trans-European Networks (TENs)

Sustainable, competitive and secure energy


The European Investment Bank (EIB)European Priority Objectives

Outside the Union:Private sector development

Infrastructure development

Security of energy supply

Environmental sustainability

Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI)


EIB Capital Increases and Outstanding Loans


Value Added

Value-Added of the Bank’s lending activities:

Support for EU priority objectives

Project quality and soundness

Financial benefits of EIB funds

Technical assistance

Project assessment


The European Investment Fund (EIF)Venture capital & SME guarantees

Established in 1994

Owned by: EIB

European Commission

Other European financial institutions

Resources: Own funds – subscribed capital

EU programmes

Trust operations (EIB, German Government)

2007 figures (signatures):Venture capital funds: EUR 521m

Guarantee operations: EUR 1397m


EIB Group Response to Financial Crisis

Fast Track Measuressubject to approval of EIB shareholders

Non-financial Measures


EIB Group Response to Financial Crisis

Additional annual EIB lending: € 15 bn

Focus on the following priority sectors

SME and Mid-Caps

Energy, Climate Change and Infrastructure

Convergence Lending


SME and Mid-Caps

EIB:

Increase by 50%

Additional € 2,5 bn p.a. in 2008/2009

Total lending up to € 30 bn for 2008-2011

New Mid-Cap Facility of € 1 bn p.a.

EIF:

Additional € 1 bn mezzanine mandate


Energy, Climate Change and Infrastructure

Energy, Climate Change

(i) energy efficiency, renewables

(ii) environmental improvement, fossil fuels, CCS

(iii) Clean Transport Facility

Infrastructure

(iv) TENs and related infrastructure

€ 2,3 bn

€ 2,3 bn

€ 2 bn

€ 2,4 bn

_______

€ 9 bn p.a.


Convergence Lending

Increase of further € 2,5 bn p.a.

Focus on EU-12

Forecast 2008: € 17 bn


Disbursement data and forecastEU + Pre-Accession Countries

0

10

20

30

40

50

60

2007 2008 2009 2010 2011

targetachieved revised target


EIB activities in the Western Balkans

0

100

200

300

400

500

600

EUR M

2007 2008 2009 2010 2011

Signatures

Disbursements

(excluding Croatia)(excluding Croatia)


EIB Activities in Candidate CountriesCroatia / Turkey / FYROM

0

0.5

1

1.5

2

2.5

3

2007 2008 2009 2010 2011

SignaturesDisbursements

Forecast signatures 2008: € 3,5 bn


Non-financial measures

Make (infrastructure-) projects happen

Technical Assistance

JASPERSJEREMIEJESSICAJASMINE

1.

2.

3.


Make projects happen

if needed: restructuring with stronger public part in all cooperations between public & private sector

if needed: take a higher share in consortia

if needed: move out of pari-passu to exclusively long term financing

if needed: (as far as possible) take more risk


Technical Assistance

Increase of Technical Assistance

- project preparation

- project standardisation

- project launching (tendering, …)

- project implementation

- project monitoring and reporting

EPECEuropean PPP Expertise Centre

Western Balkans Investment Framework

Initiative of the European Commission, EIB together with EBRD and CEB


What is JASPERS?

‘Joint Assistance to Support Projects in European Regions’

Objective: increasing the capacity of the beneficiary countries to make the best use of EU Structural Grant funding

A technical assistance partnership to prepare major projects between DG REGIO-funded (32 professionals + 10 support staff), EIB (16 professionals), EBRD (5-8 professionals) and KfW (2 professionals)

Value added: draws on past experience and expertise of the EIB and the EBRD

JASPERS is managed within the EIB but separated from its lending activities


EU Structural/Regional Funds

Focus on 12 ‘new’ Member States

Main Priorities:- Large projects in transport and environment sectors eligible for Cohesion Fund and ERDF

- Transport and other sectors € 50 M > capital cost

- Environment € 25 M > capital cost

Programming period 2007-13

Cohesion instruments: €350bn EU grants


JEREMIE stands for “Joint European Resources for Small and Medium-sized Enterprises

Initiative which was developed by the European Commission and EIF

EU Member States implement the JEREMIE initiative by establishing a Holding Fund funded through their Structural Funds. The Holding Fund can be managed either by the EIF or by other financial institutions

What is JEREMIE?

2/15

National/ Regional Evaluation completed

National/ Regional Evaluation under way

No request


Need to move away from “grant dependency”

Enhance Financial Engineering and SME Access to Finance within Cohesion Policy: Lisbon Strategy

Simplified procedures, though the Holding Fund system

… and revolving nature

Delegation to a neutral expert of selection of intermediaries, monitoring, reporting to Commission

Flexibility in the selection of instruments through holding fund concept: long term approach (2008-2015)

Leverage possibilities with other financial institutions, notably EIB

JEREMIE is a service provided to Member States (if option)

EIF invests in the name and on behalf of Member States/Regions

Why JEREMIE?Joint European Resources for Micro to Medium Enterprises

2/15


WHAT IS JESSICA?

Joint European Support for Sustainable Investment in City Areas

Initiative of the European Commission (DG REGIO) launched at end of 2005, and supported by EIB, to strengthen the urban dimension in cohesion policy

Partnership with CEB (Council of Europe Development Bank

Applying “financial engineering” techniques to EU Structural Funds


WHY JESSICA?

To make Structural Fund support more efficient and effective by using “non-grant” financial instruments, thus creating stronger incentives for successful project implementation.

To mobilise additional financial resources and expertise for PPPs and other urban development projects with a focus on sustainability/recyclability.

To utilise financial and managerial expertise from international financial institutions such as EIB.


JASMINE

JASMINE stands for “Joint Action to support microfinance institutions in Europe”Pilot initiative which has been developed by the European Commission (EC), the European Investment Bank (EIB) and the European Investment Fund (EIF).To provide effective support for the promotion of microcredit in the European Union, theWith a total budget of EUR 50m, JASMINE is financed by the EIB and potential partner banks, with the additional financial support from the European Commission. JASMINE is managed by the EIF who will provide MFIs with sources of funding such as loans or equity,as well as technical assistance.


For more information…

http://www.eib.org/

http://www.eib.org/

http://www.eib.org/

http://www.eib.org/

4/30/10 1 european investment bank

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