Investment Plan for Europe
Delivering on the European Fund for
Strategic Investments (EFSI)
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Jukka Luukkanen
Head of Helsinki Office
Helsinki 12/04/2016
EIB at a Glance
We are the world’s largest
International Financial Institution
Source of funds We raise long-term funds
on the international
capital markets and as
a non-profit organisation
we pass favourable
borrowing conditions
to our clients.
1958 Established to support
long-term investments
primarily in the
European Union. We
have over 50 years’
experience in
financing sustainable
projects.
AAA-rated We’re triple-A rated by
all major rating
agencies and have a
sizeable capital of
€242.4 bn.
Shareholders Owned by the 28
Member States of
the European Union.
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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 EIB Group in 2015
EIB in 2015:
EUR 77.5bn
EIF in 2015:
EUR
7bn
Record for the
EIB Group:
EUR 84.5bn
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KEY PRIORITIES - 2015
ENVIRONMENT
EUR 19.6bn
INFRASTRUCTURE
EUR 18.9bn
INNOVATION
EUR 18.7bn
SME
EUR 29.2bn
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EIB LENDING IN FINLAND IN 2015
Signatures in Finland 2011- 2015 (in EUR m)
EIB lending in 2015 amounted to 0.8% of Finnish GDP (vs. 0.55% on
average in EU)
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Why an Investment Plan Europe?
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Investment & competitiveness gap
High liquidity in the market
Public budget constraints
Financial and non-financial barriers
to investment
EU Investment Plan
• EU and Member
State policy action
• EU budget guarantee
• EIB capacity to
mobilise additional
investment
3 ways to tackle the investment gap
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Aim: to mobilise at least €315 billion in investment across the EU
Support investment in
real economy
• European
Investment Advisory
Hub
• European
Investment Project
Portal
Mobilise finance for
investment
• European Fund for
Strategic Investments
• Cooperation with
National Promotional
Banks
Investment Plan for Europe
Create an investment
friendly environment
• Improving the
regulatory
environment
• Structural reforms
EFSI setup and governance
All EFSI operations are within the EIB Group (EIB&EIF)
• On the EIB’s balance sheet (no separate entity)
• Subject to standard due diligence
• EIB & EIF governing bodies approve each operation
Additional EFSI governance:
• Steering Board
• Investment Committee, headed-up by a
• Managing Director
Operations already started in spring 2015
EFSI EIB
Group
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Mobilising new investment
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Making a difference
Addressing
market failures or
sub-optimal
investment
situations
Financing
operations not
possible to same
extent otherwise
Absorbing part of
the risk to trigger
additional
investments
Our value added
Maximising
growth
Supporting
employment
Attracting other
sources of
finance
Impact orientation
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With targeted products
Continuously adapting to market needs
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Key areas
Targeting strategic public and private investment
• Infrastructure: including transport, energy and digital
• Innovation: Education and training, health, research,
development and innovation
• Renewable energy: Expansion of renewable energy generation
and support of energy and resource efficiency
• Environment: Projects in the environmental, urban development
and social fields
• SMEs and midcaps: Financing support through local partner
banks and institutions
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Who can benefit?
Corporates of all
sizes
Utilities and
public sector
entities
(non-sovereign)
SMEs
(up to 250
employees) or
midcaps
(up to 3 000)
Eligible counterparts
EIB Group directly
via InfoDesk or
relevant
Operations
Department
www.eib.org
www.eif.org
Contact
National
Promotional
Banks or other
banks for
intermediation
Dedicated
Investment
Platforms
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What kind of operations?
Operations need to be:
• Commercially sound, economically and technically viable
• Underpin EFSI objectives
• Support growth and jobs
• Mature enough to be bankable
• Priced in a manner commensurate with the risk taken
• Covering EU28 countries or cross-border operations
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SME financing under EFSI
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First operations financed
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Equity-type financing
for an innovative fund
EUR 75m for
investment in offshore
wind, biomass and
transmission projects
•Funding cutting-edge
steel production
facilities
•EUR 100m for
innovative and
competitive steel
products
Financing for a Finnish
bio-mill enhancement
EUR 75m introducing renewable
energy generation to
make the plant fossil
fuel free
SME guarantee
agreement
Unlocking EUR
100m of loans for
1 000 SMEs in
Bulgaria
Driving clean
energy
investment
Backing
midcap
modernisation
For more
sustainable
industries
Supporting
smaller
businesses
EIF investment in Open Ocean Fund IV
• In 2011, EIF played a crucial cornerstone role in helping a team of former MySQL founders to raise their
debut venture capital fund, Open Ocean Fund III with EUR 44.6m in total commitments.
• Fund III has performed well with promising value drivers in the unrealized portfolio (e.g. Truecaller,
Nosto Solutions, EyeEm) with blue-chip syndication partners like Atomico, Balderton Capital,
Holtzbrinck Ventures, KPCB and Sequoia.
• EIF is the largest investor in Open Ocean Fund III.
• Since EIF’s initial support in 2011, the team of Open Ocean has positioned itself as the investor of choice
for entrepreneurs in the software space whose business model relies on open source or community
components, and it is a sought-after co-investor for European and American generalist VC funds investing
in that sector.
• The specialized skillsets that the Open Ocean team brings to the entrepreneurial ecosystem are highly
appreciated by the market.
• By investing in Open Ocean IV, EIF saw an opportunity to further contribute to the consolidation of a
reputed European VC firm with a specialized focus and a key role in the development of European
software start-ups.
• Consequently, EIF made a commitment of EUR 30m at the first closing, hence allowing Open Ocean
Fund IV to reach a viable minimum closing size.
• EIF’s commitment in Open Ocean Fund IV will constitute a transaction to be reported under European
Fund for Strategic Investment (EFSI), in line with the call from the European Council of December 2014.
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EIF and Pohjola Bank sign EUR 150m InnovFin agreement for innovative
companies in Finland, Estonia, Latvia and Lithuania
• On 30 March 2016 the European Investment Fund (EIF) and
Pohjola Bank (as part of the OP Financial Group), signed a
guarantee agreement to increase lending to innovative small
and medium-sized enterprises (SMEs) and small mid-caps in
Finland, Estonia, Latvia and Lithuania
• This transaction benefits from the support of the European Fund
for Strategic Investments (EFSI)
• The new agreement will allow OP Financial Group to provide
EUR 150m of loans to innovative companies in Finland and the
Baltic states over the next 2 years.
• The loans will be supported by an EIF guarantee under the “EU
InnovFin finance for Innovators” initiative with financial backing
from the European Commission's Horizon 2020 programme.
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Results dashboard (EIB group)
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(as of 10 March)
2015 2016
2017 2018
2019 2020
30 June
2nd
deadline
for
signature
of EFSI
Operations
4 July
Deadline
for
approval of
EFSI
Operations
4 July 4 July
Entry into
force of
EFSI
Regulation
Timeline and investment period
1st
deadline
for
signature
of EFSI
operations
Investment period to achieve EUR 315bn of total investments “Extended” investment period
EFSI operations to target EUR 315bn of total investment by 2018
Actual investment period runs until 30 June 2020
Third anniversary
of signing the
EFSI Regulation
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Thank you!
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