acp investment facility - european parliament · 2013. 3. 20. · european investment bank 14...
TRANSCRIPT
1 European Investment Bank
ACP Investment Facility Presentation by H. Rüttgers,
HoD Portfolio Management & Policy, ACPIF Department, EIB
to the
ACP-EU Joint Parliamentary Assembly
Committee on Economic Development, Finance and Trade
Brussels, 21.03.2013
2 European Investment Bank
EIB lending in ACPs & OCTs
Sources of funding:
- European Development Fund (EDF)
- EIB Own Resources
ACPs: the oldest mandate entrusted to the EIB (1963)
Since 2003: “Cotonou Partnership Agreement”
Builds on 50 years of experience
OCTs: since 1968
Since 2001: “Overseas Association Decision”
EIB’s role focuses on Financial Cooperation:
managing the Investment Facility & lending from its own resources
3 European Investment Bank
Sources of funding
European Union
►Loans* ►Interest rate
►Equity ►Technical assistance
►Guarantees
Intra-ACP and inter-
regional cooperation
Revolving fund
Total capital endowment under
9th and 10th EDFs
ACPs EUR 3 137m · ACPs EUR 400m
OCTs EUR 48.5m · OCTs EUR 1.5m
* Senior, junior, subordinated and intermediated loans, as w ell as quasi-equity operations.
European Investment Bank
European Development Fund
(EU Member States’ budgetary funds)
Own resources►Grants Investment Facility
National and regional
indicative programmes
►Senior loans
Subsidies
ACPs up to EUR 2 000m
Amounts available under the 10th EDF 2008-2013
OCTs up to EUR 30m
4 European Investment Bank
Economic growth
Poverty reduction
&
Millennium Development Goals
Private sector
development, through
Foreign Direct Investors,
Local private sector
Financial sector
Commercially viable public entities
The objectives The means
Use of a wide range of
risk-bearing instruments
Value added of the IF
The constraints
• Ensure the long-term
sustainability of the IF
through risk pricing
• Mitigate the risk of MS as
guarantors vs.
developmental objective
Lending under the IF and OR
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STRATEGIC FOCUS
Microfinance SMEs Transport Water Energy
- mainly through intermediaries - - public & private sector -
Infrastructure Financial sector
Telecoms
ACROSS SECTORS
CLIMATE ACTION IS A KEY PRIORITY
Other Sectors are also eligible but will remain
marginal in the EIB portfolio
6 European Investment Bank
EIB lending in the ACPs & OCTs
- instruments -
7 European Investment Bank
The Investment Facility
8 European Investment Bank
Own resources
European
Investment
Bank
9
EIB Own Resources
Senior debt denominated in EUR and widely traded currencies
• Funds borrowed on the capital markets
providing
• 1st class guarantee or prime-quality security
usually required (unless sovereign risk)
•Mainly Public sector investments: sovereign/sub-sovereign
borrowers
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Own Resources versus Investment Facility
EIB own resources:
Public sector investments: sovereign/sub-sovereign borrowers
Private sector projects covered by a third party guarantee
IF resources:
Private sector investments requiring risk-bearing instruments
e.g.: conditional loans/ subordinated loans/guarantees/equity
OR & IF resources complement each other
European
Investment
Bank
11
Range of Available Financial Instruments in the ACPs
Investment Facility EIB Own resources
Senior debt
Junior/subordinated debt
Intermediated loans
Quasi-equity
Equity
Guarantees
Currencies
- widely traded
- local
Only widely traded
currencies
Interest rate subsidies
Project related TA
European
Investment
Bank
12
Other
Instruments
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Interest Rate Subsidies
Available to increase concessionality for:
Infrastructure projects in Least Developed Countries, post-
conflict and post-natural disaster countries, HIPC countries
projects with substantial and clearly demonstrable
environmental or social benefits
restructuring operations in the framework of privatisations
General rule applied :
- Interest rate subsidy: maximum 3 %
- Final rate of loan: cannot be less than 50% of the reference rate
- In the case of HIPC countries, the interest rate may be reduced by such
amount as required to comply with the level arising from the HIPC initiative
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Technical assistance
Up to EUR 60 m (ACPs) and 0.15 m (OCTs)
over the 2008-2013 period
to provide
- enhancing project quality and success rate
- increasing the efficiency of EIB’s investment activities
- complementing other EIB products
Strategic initiatives Project-related
Capacity building, covering the whole project cycle:
microfinance undertakings
infrastructure projects
focus on project preparation & implementation
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Innovative forms of blending
Leverage additional public and private resources for EU development
policy objectives (financial leverage)
Increase aid effectiveness:
Grant element can improve the quality and sustainability of
projects and speeds up processes (non-financial leverage)
Careful use of loans can assist in increasing financial
discipline and ownership compared to exclusively grant receipts
Promote cooperation and coordination between aid actors (donors
and finance institutions)
EU
resources
Finance
Institutions
resources
other
resources
16 European Investment Bank
Overview of 2012 operations
European
Investment
Bank
17
•
EIB and the Cotonou Agreement • 9 years down the road (31/12/2012)
• Total net signatures of EUR 5.5 bn
EUR 3 052m under the IF (EUR 355m in 2012)
EUR 2 477m under EIB own resources
( EUR 289m in 2012)
• Two thirds of the portfolio relate to private sector
operations
• More than one third of total investments
went to African infrastructure
• Close to 80 % of the portfolio relate to Africa
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IF v. OR overall figures
in EUR m
Year
Investment
Facility (IF)
Own Resources
(OR)
N° projects Total
2009 414.1 413.2 29 827.3
2010 369.1 597.8 25 966.8
2011 203.9 386.6 26 590.5
2012 354.8 282.0 23 636.8*
* A further EUR 100 m was signed for two projects in the Republic of
South Africa, bringing total lending for the 2012 year to EUR 736.8m