key performance indicators - key monitoring indicators ... · pdf filekey performance...

EUROPEAN INVESTMENT BANK

SB/07/15 15 December 2015 Document 12-2015 Final

FOR DECISION

E U R O P E A N F U N D F O R S T R A T E G I C I N V E S T M E N T S

S T E E R I N G B O A R D

KEY PERFORMANCE INDICATORS KEY MONITORING INDICATORS METHODOLOGY

Joint proposal by EC and EIB

Questions concerning this note should be referred to EFSI Secretariat: tel: +352 4379 82130; e-mail: [email protected]

mailto:[email protected]

Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015

1

Key Performance Indicators / Key Monitoring Indicators Methodology

_________________________________________________________________________________

1. INTRODUCTION

This document sets out:

i. the methodology used to report separately on the IIW and the SMEW under EFSI, including

separate breakdowns for debt and equity-type operations for each window in accordance

with the EFSI Agreement, which has been jointly developed by the EIB and the EIF; and

ii. the methodology to determine an aggregated indicator for each Key Performance Indicator

(KPI) and Key Monitoring Indicator (KMI) by mapping corresponding indicators across both

windows, likewise developed as a result of collaboration between the EIB and the EIF.

Capitalized terms used in this document and not expressly defined herein shall have the meaning

ascribed to them under the EFSI Regulation, the EFSI Agreement or the relevant EIB/EIF Multiplier

Calculation Methodology Papers, as applicable.

The EFSI Regulation sets out four (4) KPIs, which capture various dimensions of EFSI (i) the value

added of operations (contribution to EFSI objectives, quality and soundness of projects and

technical and financial contribution); (ii) additionality (strongly linked to the risk profile of the

operations under EFSI); and the macroeconomic impact of EFSI (expressed through (iii) total

investment and (iv) mobilization of private finance).

In addition to the KPIs, the EFSI Agreement sets out six (6) KMIs which complement the KPIs in

providing an aggregated picture of EIB Group’s performance in connection with EFSI.

The KPIs and KMIs can be classified into two (2) categories; namely (i) those indicators which are

meant to report on the progress in relation to the use of the EU Guarantee and the fulfilment of

the objectives and criteria set out in Articles 6, 9 and Annex II of the EFSI Regulation (as

applicable); and (ii) those indicators which report on EFSI operations macroeconomic impact and

mobilisation of private capital.

Table 1 Overview KPIs and KMIs according to the EFSI Agreement

Indicator

typology

Use of the EU Guarantee and fulfilment

of objectives and criteria

Contribution to direct

macroeconomic impact and

mobilisation of finance

Key

Performance

Indicators (KPI)

- KPI 1: the value added scores of

operations, broken down by rating

distribution for: (i) contribution to EFSI

policy objectives; (ii) quality and

soundness of the project; and (iii)

technical and financial contribution

- KPI 2*: the share of operations signed

as special activities (by number of

operations and amount) out of the IIW

and the SMEW portfolios

- KPI 3: the total investment

- KPI 4: amount of private finance

mobilized


2

Indicator

typology

Use of the EU Guarantee and fulfilment

of objectives and criteria

Contribution to direct

macroeconomic impact and

mobilisation of finance

Key

Monitoring

Indicators

(KMI)

- KMI 1*: the geographical

concentration, broken down by volume of

operations supported by the EU

Guarantee by country and number of

countries reached;

- KMI 2*: the sector concentration,

broken down by volume of signed

operations supported by the EU

Guarantee.

- KMI 3: notional internal guarantee

multiplier and the external

investment multiplier

- KMI 4: forecast number of direct

jobs to be created / sustained;

- KMI 5: the share of operations co-

financed with NPBs (by number of

operations and amount)

- KMI 6: the share of operations co-

financed with European Structural

and Investment Funds and other EU

instruments other than EFSI (by

number of operations and amount)

* In accordance with the EFSI Agreement Article 23 and Schedule II.A.3, “volume” refers to signed

amounts; the remaining KPIs/KMIs data is based on ex-ante estimates until project completion.

The KPIs and KMIs play a prominent role in measuring the achievement of the EFSI objectives.

They are key elements for the purposes of regular reporting to the EC, the European Parliament

and the Council, and of the evaluations, audit and reviews of EFSI. Furthermore, the KPIs/KMIs

are respectively reflected in EIB’s and EIF’s internal monitoring and planning framework. They are

relevant for both (i) ex-ante assessment of individual operations; and (ii) ex-post reporting.

KPI/KMI reporting covers only EFSI Guaranteed Operations (i.e. signed).

In accordance with the EFSI Regulation, the EFSI Agreement foresees aggregated reporting of the

KPIs and KMIs under the IIW and SMEW, as well as a break down for debt type operations and

equity type operations for each window. This creates the particular need to complement the KPIs /

KMIs Methodology for each window with a mapping methodology to aggregate data, despite

differences of both windows with regards to products, project types and use of the EU Guarantee.

In accordance with the EFSI Agreement, EIB will be responsible for aggregating the information

provided by EIF under each KPI / KMI in the terms set out below in order to provide the EC with

the mandatory operational reports.

As far as the IIW is concerned, the methodology for certain KPIs and KMIs is already in place, or

defined in other papers which have been submitted to the EIB Group and EFSI governance

structures separately for formal approval. For the avoidance of doubt, KPI / KMI calculations for

equity-type operations under the IIW shall refer to the EIB as well as the EU contributions invested

pari-passu.

As far as the SMEW is concerned, the proposed methodology applies to the existing EIF products

which form part of EFSI, independently from whether they benefit from the EU Guarantee in

accordance with the EFSI Agreement. In this sense, the KPI and KMI Methodology is presented for

the COSME Loan Guarantee Facility and InnovFin SME Guarantee, as well as for the EIB/EIF

equity products under the Risk Capital Resources Mandate (“RCR”) which is currently not covered

by the EU Guarantee. The proposed methodology will be amended as required upon approval of

new SMEW Products from time to time.


3

2. KEY PERFORMANCE INDICATORS

KPI 1: Added Value of Operations

Definition as

per EFSI

Agreement

The value added of operations, broken down by rating distribution for

in case of IIW: (i) contribution to EFSI policy objectives; (ii) quality and soundness of the project; and (iii) technical and financial

contribution

in case of SMEW: (i) impact assessment, (ii) quality assessment, and (iii) contribution to the operation;

No target for this KPI on a portfolio level is determined in the EFSI Regulation.

Windows IIW SMEW

References

Annex to the Regulation 2015/1017 by the

establishment of a scoreboard of indicators for the

application of the EU Guarantee (document C(2015)

5176 ANNEX 1)

EFSI SMEW KPI1 Methodology (available upon request)

Methodology

Pillar 1: contribution to EFSI policy objectives (rating:

low (4), moderate (3), significant (2), high (1));

Pillar 2: quality and soundness of the project (rating:

marginal’ (4), ‘acceptable’ (3), ‘good’ (2), ‘excellent’

(1));

Pillar 3: technical and financial contribution (rating:

‘low’ (4), ‘moderate’ (3), ‘significant’ (2), to ‘high’ (1));

Differentiation: sub-indicators of pillar 3 are adjusted

for Multi Beneficiary Intermediated Loans (MBILs) to

assess capacity and effectiveness of intermediaries to

Debt operations in the form of

guarantee Equity products line

Pillar 1 – impact assessment

(portfolio contribution): graded

4 (low) to 1 (high

Pillar 2 – quality assessment:

graded 4 (low) to 1 (high)

Pillar 3 – financial contribution

assessment: graded to 4 (low)

Pillar 1 – specific market

needs: graded 4 (lowest)

to 1 (highest)

Pillar 2 – transactional

structure: graded 4

(lowest) to 1 (highest)

Pillar 3 – catalytic effect:


4

Windows IIW SMEW

deliver value added. to 1 (high)1

graded 4 (lowest) to 1

(highest)

Formula For each pillar separately: rating distribution by number

of operations and share of total operations

For each pillar separately: rating distribution by number of

operations and share of total operations

Aggregation

Mapping of sub-indicators

The following equivalence matrix will be applicable for the purposes of aggregation between the different pillars across the IIW and

SMEW:

EIF financial contribution assessment is internally defined as the contribution of EIF intervention to the underlying policy objective due

to its direct investment or due to EIF’s signalling effect, expertise, risk taking capacity. This criterion therefore better corresponds to the

contribution of EIF to EFSI policy objective. A detailed presentation of the pillars criteria is to be found in EFSI SMEW KPI1

Methodology. .

IIW SMEW

Debt operations in the form of guarantee Equity products line

Pillar 1: contribution to EFSI policy

objectives

Pillar 1: financial contribution assessment Pillar 1: specific market needs

Pillar 2: quality and soundness of the

project

Pillar 2: quality assessment Pillar 2: transactional structure

Pillar 3: Technical and financial

contribution

Pillar 3: impact assessment (portfolio

contribution)

Pillar 3: catalytic effect

1 Due to the fact that EIF has been entrusted by EIB to implement the SMEW, the debt operations’ financial contribution will be always deemed to be high for the purposes of KPI 1 in

accordance with the definition of the ‘financial contribution assessment’ under the EIF VAM.


5

Windows IIW SMEW

Mapping of rating scores across windows

Ag. Rating Score 3PA – Pillar 1 3PA – Pillar 2 3PA – Pillar 3 SMEW-Debt SMEW-Equity

4 Low Marginal Low D / 4 / low D

3 Moderate Acceptable Moderate C / 3 / medium C

2 Significant Good Significant B / 2 / significant B

1 High Excellent High A / 1 / high A

Aggregated portfolio indicator

Reporting will be in the form of a table with aggregates broken down by the three pillars and the window (IIW, SMEW), for

which the percentage of number of operations falling into the respective rating class are calculated. Break-downs by sub-window

(equity, debt) are to be provided in further tables with the same structure.

As additional information, an aggregated portfolio indicator for each of the three sub-indicators (by window and by sub-window)

will be calculated, by assigning each rating a score of 1 to 4 (from highest to lowest rating), and calculating the average over all

operations falling into the respective portfolio. This factor, together with the above mentioned rating which is closest will then be

used as rating for the portfolio (e.g. “2.3 (=significant)” ) as follows:

Aggregated portfolio score for pillar < 1.5 high (pillar 1) / excellent (pillar 2) / high (pillar 3)

1.5 ≤ Aggregated portfolio score for pillar < 2.5 significant / good / significant

2.5 ≤ Aggregated portfolio score for pillar < 3.5 medium / acceptable / moderate

Aggregated portfolio score for pillar ≥ 3.5 low / marginal /low


6

Windows IIW SMEW

Examples

Debt-Type Low (4) Moderate (3) Significant (2) High (1) Score

# Ops % Ops # Ops % Ops # Ops % Ops # Ops % Ops

Pillar 1

IIW 1 1.5% 5 7.6% 50 75.8% 10 15.2%

2.0 significant

SMEW 0 0.0% 2 3.8% 30 57.7% 20 38.5%

1.7 significant

Total 1 0.8% 7 5.9% 80 67.8% 30 25.4%

1.8 significant

Pillar 2

IIW 0 0.0% 5 7.6% 22 33.3% 39 59.1% 1.5 high

SMEW 0 0.0% 16 30.8% 14 26.9% 22 42.3% 1.9 significant

Total 0 0.0% 21 17.8% 36 30.5% 61 51.7% 1.7 significant

Pillar 3

IIW 0 0.0% 50 75.8% 10 15.2% 6 9.1% 2.7 moderate

SMEW 1 1.9% 12 23.1% 15 28.8% 24 46.2% 1.8 significant

Total 1 0.8% 62 52.5% 25 21.2% 30 25.4% 2.3 significant

Pillar 1 (IIW) total score for equity product lines: (4 x 1.5%) + (3 x 7.6%) + (2 x 75.8%) + (1 x 15.2%) = 2.0 (significant)


7

KPI 2: Share of operations signed as special activities

Definition as per

EFSI Agreement

The share of operations signed as special activities (by number of operations and amount). Reporting will be based on signed

amounts.

No qualitative target for this KPI on a portfolio level is determined in the EFSI Regulation

Windows IIW SMEW

References Section 10.1 of the EIB EU Credit Risk Policy Guidelines (“EU

CRPG”)

In the absence of such specific concept for EIF, Section

10.1 of the EU CRPG applies

Methodology

Section 10.1 of the EU CRPG defines Special Activities as the

collective denomination of those activities that entail a risk

that is greater than the risk generally accepted by the Bank,

in line with article 16.3 of the Bank’s Statute. Special

Activities are defined as:

Lending or guarantees having a risk profile which in EIB

terms correspond to a Loan Grading of D- or below. This

definition includes products deployed in the framework of

cooperation with the EC where part of the underlying risk is

absorbed by a third party,

Infrastructure funds and other fund participations, venture

capital activities, equity operations and other operations with

an equivalent risk profile.

The underlying SME risk in the framework of the SMEW

is consistent with the definition of ‘special activities’

provided under Section 10.1 of EU CRPG (see

methodology for IIW). All products under the SMEW are

deployed in the framework of cooperation with a third

party where part of the underlying risk is absorbed by

such third party (EC or EIB in the case of RCR). All these

operations are considered as being sub investment

grade and therefore in EIB Loan Grading approach

would have an EL greater than 2%. Therefore all

operations under the SMEW are deemed to be ‘special

activities’.

Formula

Special Activities: As per Loan Grading of the operation. For

the avoidance of doubt, the equity type operations are

considered 100% Special Activities; including with the

amount of EIB own resources.

100% of COSME LGF, InnovFin SMEG, RCR to qualify

as Special Activities


8

Windows IIW SMEW

“By number” relates to the number of signed EFSI Operations

which fall under SA, compared to signed EFSI Operations not

falling under SA.

“By amount” relates to the signed total EFSI Financing

Volume falling under Special Activities, compared to the

signed total EFSI Financing Volume not falling under SA.

Aggregation Based on methodologies above, an aggregated KPI, separately by total number of operations and by total signature-amount,

will be calculated covering SMEW and IIW.

Examples

Aggreg

ate

EFSI Special Activities

EFSI Non Special

Activities

Share SA

number amount number amount

number amount

IIW 80 1,200.0 4 120.0

95.2% 90.9%

SMEW 20 600.0

100.0% 100.0%

Total 100 1,800.0 4 120.0

96.2% 93.8%


9

KPI 3: Total Investment

Definition as

per EFSI

Agreement

The total investment is defined as follows:

In case of the IIW: the volume of additional EFSI-eligible investment (public or private, including financing mobilised through the EIF

under EFSI) in real economy.

In case of the SMEW: the maximum amount of financing available to Final Recipients multiplied by 1.4

Target to generate a total of EUR 315 billion investment by 4 July 2018 (three years of the date of entry into force of the Regulation).

However, performance on KPI3 will continue to be reported.

Windows IIW SMEW

References

IIW Multiplier Calculation Methodology (as approved by EFSI

Steering Board on 26/10/2015)

EIB Guidelines for Infrastructure Fund Activities (GIFA)

Multiplier calculation methodology set out in the EIF

Multiplier Calculation Methodology Paper (ref.

DCE/FIN/SPA-nk/2015-xxx) (the “EIF Multiplier

Calculation Methodology”)

Methodology

For investment loans,

direct equity type

For Intermediated operations, Funds Debt operations in the form of


The total investment is

equal to the total EFSI-

eligible Project

Investment Cost (PIC), as

defined in the Multiplier

Calculation

Methodology.

The total investment is equal to the total

EFSI-eligible Project Investment Cost (PIC),

as defined in the Multiplier Calculation

Methodology. It corresponds to the product

of the EFSI Financing amount times the

catalytic effect at intermediary / fund level

(together forming the Maximum Portfolio

Volume) times the multiplier at project level

The total investment is defined

as the “Maximum Portfolio

Volume” so determined

multiplied by a multiplier of

1.4x.

The maximum amount of

financing available to final

The total investment is equal

to the maximum amount of


recipients multiplied by a

multiplier of 2.5x.

The maximum amount of



10

Windows IIW SMEW

(e.g. 1.4 for bank intermediated operations

throughout project lifecycle).

The Total Investment will be determined ex-

ante2

and reported to the EC at the time of

signature and updated and reported at

completion, as agreed in the multiplier

methodology paper.

recipients equals the

“Maximum Portfolio Volume” 3

.

In particular, the “Maximum

Portfolio Volume” means:

the total SME loan

portfolio guaranteed in

the context of direct

guarantee products; and

guaranteed SME loan

portfolio divided by the

counter-guarantee rate

provided by the financial

intermediary to its

beneficiaries.

recipients equals, ex ante, the

target fund size adjusted for,

inter alia, the possible

investments outside EU 28,

management fees and

reflows.

Such adjustment has been set

at 75% for the equity products

line.

The total investment is to be

updated ex post once the

amount of financing available

to final recipients can be

determined, as applicable

It being understood that past

closings where EIF has not

participated are not

considered under this

calculation

2

For funds/platforms, updated at signature, where needed

3 To be respectively calculated in accordance with the definition of the term “Maximum Portfolio Volume” under the Delegation Agreement in respect of the Financial Instruments under Horizon 2020 (the “H2020

DA”) and the Delegation Agreement in respect of the Financial Instruments of the Programme for the Competitiveness of Enterprises in small and medium-sized enterprises (COSME) (the “COSME DA”). Please refer

to footnote [3] below for further details regarding the calculation of the “Maximum Portfolio Volume” in connection with the debt-type SMEW Products.


11

Windows IIW SMEW

Formula

For investment loans,

direct equity type

For Intermediated operations, Funds Debt operations in the form of


Total investment =

Total Project Cost

- adjustment if only

partial coverage of

project scope

- deduction of EU

co-financing

- deduction PIC of

subsequent EFSI

financing amount

which does not

support new EFSI

eligible investments

- deduction for non-

EFSI-eligible

components

For Debt:

Total investment =

Maximum Portfolio Volume (=EFSI

Financing amount multiplied by different

catalytic factor for SME/Midcap, risk-

sharing)

x 1.4 (external multiplier)

For Investment Funds / Platforms:

external multiplier and catalytic effect based

on information on investment policy

provided by the fund manager at time of

appraisal.

Total investment =

Maximum Portfolio Volume


Total investment =

target fund size (or final fund

size, as applicable)

x 0.754

(adjustments)


Aggregation

Based on the total investment amount calculated for IIW and SMEW in individual cases, the amounts for both windows can be added for

the purposes of aggregated reporting.

For the aggregation, the following procedure will avoid double-counting:

SMEW and IIW in same operation: When EIB and EIF co-finance the same project under EFSI, in theory, there could be double

4

In the case of RCR under EFSI a 0.88x adjustment is applied for management fees and reflows together with a 0.85x adjustment for the geographical repartition, as set out in the annex 2 “EIF EFSI Multiplier

Calculation Methodology”. The combination of those adjustments results in a 0.75x adjustment to the target fund size (or final fund size as applicable).


12

Windows IIW SMEW

counting for an amount equivalent up to the size of the smallest portfolio of loans. As a conservative approach, by default and for

all co-financed operations across the board, the rate of overlapping will be estimated at 50% (assumption to be revisited based on

ex-post figures) of the size of the smallest portfolio of loans. This amount will then be distributed 25% on EIB and 25% on EIF

portfolio, thereby allowing keeping a proportionated relative size of the two portfolios (see example below).

EIB direct financing and EIB fund investment: Double-counting can occur when the Bank is directly providing EFSI support to an

operation, which has funds amongst its shareholders that EIB also supports under EFSI. In such case, in accordance with GIFA

chapter 3.10.3 (EIB multiple exposure to projects) the project cost will not be adjusted when calculating the ex-ante multiplier of the

operations and investment impact (at appraisal, submitted to the Investment Committee) but EIB will keep track of the double

counting and deduct the total double counting from the total investment cost ex-post (at reporting). A similar approach will be

envisaged for EIB investment via Platforms.

Examples

IIW, investment loan: total project cost 200; EU-co-financing 100; not-EFSI

eligible 10 KPI3 = 200 - 100 – 10 = 90

IIW midcap-loan: EFSI financing 30 KPI3 = 30 x 1.4 x 2 = 84

SMEW debt: maximum portfolio volume 100 KPI3 = 100 x 1.4 = 140

SMEW equity: Target fund size available for investments 100 KPI3 = 100 x

0.75 x 2.5 = 187.5

Double Counting SMEW – IIW: SMEW (fund) 100; IIW (loan) 150 maximum

overlap = 100, estimated overlap (50%) = 50, leading to reduction of 25 per window SMEW: 100 – 25 = 75; IIW: 150 – 25 =

125

Double Counting IIW direct – IIW fund: Direct loan project A 100; Fund 100, with an ex-post participation of 10 in project A ex

ante KPI3 = 200; ex post KPI3 = 200 – 10 = 190

KPI 3

Total Investment

Debt Equity Total

IIW 1,500.0 1,000.0 2,500.0

SMEW 400.0 400.0 800.0

Aggregated 1,900.0 1,400.0 3,300.0


13

KPI 4: Amount of private finance mobilized

Definition as

per EFSI

Agreement

For the IIW: total amount of private finance mobilized by the EFSI Guaranteed Operations. In determining the amount of

private finance mobilised, only the amount of financing or risk-bearing capacity provided by non-public entities shall be

considered.

For the SMEW: The role of the private sector is defined as the SMEW target amount of private finance mobilized; in turn

defined as the maximum portfolio volume.

No qualitative target for this KPI on a portfolio level is determined in the EFSI Regulation. Instead, the EFSI Regulation calls to

“maximise where possible the mobilisation of private sector capital” (Article 6). This is based on the rationale that EFSI should

act as a catalyst for private finance by addressing market failures so as to ensure the most effective and strategic use of public

money (see Preamble 23).

Windows IIW SMEW

References

IIW Multiplier Calculation Methodology (as approved by

EFSI Steering Board on 26/10/2015)

EIB Credit-risk policy guidelines (CRPG)

Respectively, the H2020 DA and COSME DA for the

guarantee SMEW Products under the debt sub-window

EIF Multiplier Calculation Methodology

Methodology

The private finance mobilized is calculated by starting

from the total investment (KPI 3), and deducting any

amount of financing or risk-bearing capacity provided by

public entities. The latter will comprise EIB/EIF financing

(EFSI and non-EFSI under both windows), as well as co-

financing with NPBs and/or with other public entities, and

National grants (ESIF and EU funds already excluded

from PIC).

In case of the IIW, in the absence of separate co-

financing breakdowns for the EFSI-eligible PIC, the

distribution for the total PIC will be used as a proxy (i.e. it

is assumed that if part of the project cost is not EFSI-

Final recipients are assumed to be fully private. Therefore the

amount of private finance mobilized is calculated by deducting

any amounts corresponding to EIF and/or public of financing or

risk-bearing capacity from the total investment amount (KPI 3).


14

Windows IIW SMEW

eligible, the non-eligible part is distributed on public and

private co-financiers according to their overall financing

share)

In case of lending via intermediaries and funds, all final

recipients are assumed to be private unless the specific

operation targets public entities (in line with EIF

methodology).

Classification of counterparts and co-financiers into

public and private will be based on promoters’

information at the time of approval / signature and the

EIB counterpart database used to classify counterparts.

The classification of counterparts will be further refined by

EIB in consultation with EC.

Formula

Amount of private finance mobilized =

Total investment (as calculated for KPI3) minus

- EIB/EFSI financing amount **

- co-financing by member states *

- co-financing by NPBs *

- co-financing by other public entities 5

*

- equity investment public borrowers

* eventually adjusted to reflect PIC adjustments

** including guarantees and investment amounts

Amount of private finance mobilized =

Total investment (KPI 3) minus

- EIF/EFSI financing amount

- co-financing by member states

- co-financing by NPBs

- co-financing by other public entities

- equity investment by public entities

Aggregation The total amount of private finance mobilized will be aggregated for IIW and SMEW, with break-downs by windows (IIW,

5

The adjusted Project Investment Cos (PIC) already includes the deduction for the EU co-financing.


15

Windows IIW SMEW

SMEW) and sub-window (equity, debt) in accordance with the EFSI Agreement.

Based on the methodology above, an aggregated KPI will be calculated covering signature-amounts of SMEW and IIW.

Examples

total investment 100; co-financing 20 NPB, 80 other; Private Finance Mobilized = 100 – 20 = 80

same example, but public borrower (equity 10) Private Finance Mobilized = 100 – 20 – 10 = 70

KPI 4

Private Finance Mobilized

Debt Equity Total

IIW 1,000.0 900.0 1,900.0

SMEW 200.0 300.0 500.0

Aggregated 1,200.0 1,200.0 2,400.0


16

KEY MONITORING INDICATORS

The Key Monitoring Indicators (KMIs) complement the KPIs in providing an aggregated picture of EIB Group’s performance in connection with EFSI.

Different from KPIs, KMIs do not represent a specific target and their outcome is in certain instances beyond the control of the EIB Group. The KMIs are

measured cumulatively up to (and including) the period under review.

KMI 1: Geographical concentration

Definition as per

EFSI Agreement

For the IIW: the geographical concentration is broken down by volume of operations supported by the EU Guarantee by country

and number of countries reached

For the SMEW: geographical concentration at financial intermediary level will be broken down by volume of operations supported

by the EU Guarantee by country, and number of countries reached.

Windows IIW SMEW

References Investment Guidelines of the EFSI Regulation

(Draft) Paper on Strategic Orientations of EFSI

Debt operations in the form

of guarantee Equity products line

Methodology

For IIW direct operations:

Volume by country: signed EFSI financing amount

distributed using country-percentages at operation

By # countries reached: the number of EU-28

countries in which projects are located

For IIW intermediated operations / funds:

Volume by country: the signed amount defined as

the EFSI financing amount signed at financial

intermediary level, broken down by EU-28 countries

The following criteria will apply

for the purposes of determining

the geographical

concentration:

Volume by country:

the signed amount at financial

intermediary level defined as

the EFSI contribution (i.e. up to

EUR 500m in the case of

The following criteria will apply for the

purposes of determining the geographical

concentration:

Volume by country:

target fund size (or final fund size, as

applicable)

x 0.75, as defined in KPI3,

broken down by EU-28 countries in which

eligible beneficiaries have received, or are


17

Windows IIW SMEW

in which final beneficiaries / underlying projects

have received (at the time of completion), or are

estimated to receive (at the time of signature, based

on the information provided by the fund

manager/promoter, if this is not available using

“regional EU”), financing pursuant to EFSI.

For de-linked structures, ex-ante reporting will be

based on country-breakdown for new portfolio at

appraisal / signature stage (based on the

information provided by the fund

manager/promoter), and ex-post the real

distribution.

By # countries reached: the number of EU-28

countries in which final beneficiaries / underlying

projects have received, or are estimated to receive,

financing pursuant to EFSI.

Special case: For cross-border operations, the amounts

falling in non-EU countries will be excluded from the

calculation and listed separately as an info-item.

COSME and up to EUR 750m

in the case of InnovFin),

broken down by EU-28

countries in which eligible

beneficiaries have received, or

are estimated to receive,

financing pursuant to EFSI.

By number of countries

reached:

the number of EU-28 countries

in which eligible beneficiaries

have received, or are

estimated to receive, financing

pursuant to EFSI.

estimated to receive, financing pursuant to

EFSI.

For these purposes, funds and funds of funds

active in multiple countries will be reported

ex ante under the ‘multi-country’ category, as

applicable, to be updated ex post in

accordance with the final composition of the

relevant portfolio

By number of countries reached:

the number of EU-28 countries in which

eligible beneficiaries have received, or are

estimated to receive, financing pursuant to

EFSI.

Aggregation

The geographical concentration limits at the end of the initial investment period, requested by the Investment Guidelines and defined

in the Draft Paper on Strategic Orientations for EFSI, apply only to the IIW.

The KMI also foresees an aggregated geographical concentration covering both windows to be calculated. .Based on methodology

above, an aggregated KMI will be calculated covering EFSI financing-amounts across windows. This complements the above

mentioned geographical concentration guidelines requested in the investment guidelines, which cover the IIW only.


18

Windows IIW SMEW

Examples

KMI 1 Aggregated IIW SMEW

Country 1 1,100.0 25.9% 1,000.0 100.0

Country 2 0.0 0.0% 0.0 0.0

…

Country 28 150.0 12.0% 150.0 0.0

Number of Countries 2.0 2.0 1.0

Operation with 30% FRA / 70% GER, 200 EFSI financing 60 FRA; 140 GER; 2 countries

Fund: ex-ante as “multi-country” with full volume and no impact on number of countries reached, ex-post depending on final

composition of portfolio


19

KMI 2: Sector concentration

Definition as

per EFSI

Agreement

The sector concentration is broken down by volume of operations supported by the EU Guarantee by sectors defined by the Steering

Board in accordance with the Investment Guidelines.

For the SMEW: sector concentration at final recipient level based on actual data, broken down by volume of operations supported by the

EU Guarantee by sector as derived from the NACE level 1 code.

Windows IIW SMEW

References

Investment Guidelines of the EFSI Regulation

(Draft) Paper on Strategic Orientations of EFSI

Provisions on sector concentration, if any, will be mentioned in the

relevant product annexes to Schedule VII of the EFSI Agreement

EVCA – NACE level 1 mapping table:

http://www.investeurope.eu/media/12926/sectoral_classification.pdf

Methodology

The sector concentration is measured by signed EFSI

Financing amount, broken down by the sectors per

NACE level 1 code.

In case of the IIW, the data will also be reported broken

down by the general objectives as per the Article 9(2) of

the Regulation for the purpose of: (i) the semi-annual

reporting foreseen in Schedule II of the EFSI Agreement

and (ii) the indicative sectoral concentration limits in

accordance with the Investment Guidelines.

The sector concentration will be determined by the signed amount at

financial intermediary level defined as the EFSI contribution (as

defined under KMI 1 above) received by eligible final recipients

classified per NACE level 1 code.

For equity product lines, the sector concentration will be determined by

the target fund size (or final fund size, as applicable) x0.75 (as defined

under KMI 1 above), as per the Invest Europe (formerly EVCA) sector

table of correspondence mapping EVCA sector classification and

NACE level 1 code

Formula

Sector concentration =

EFSI financing amount falling into sector

/ Total EFSI financing amount

n/a

Aggregation The KMI also foresees an aggregated sector concentration covering both windows to be calculated. Based on methodology above, an


20

Windows IIW SMEW

aggregated KMI will be calculated covering EFSI financing-amounts across windows.

Examples

KMI 2 Aggregated IIW SMEW

Amount Percent Amount Percent Amount Percent

Sector 1 1,100.9 88.0% 1,000.0 87.0% 100.0 100.0%

Sector 2 0.0 0.0% 0.0 0.0% 0.0 0.0%

Sector 3 150.1 12.0% 150.0 13.0% 0.0 0.0%

… … … … … … …

Total 1,251.0 100.0% 1,150.0 100.0% 100.0 100.0%


21

KMI 3: Notional Internal Guarantee Multiplier and External Investment Multiplier

Definition as per

EFSI Agreement

The notional internal guarantee multiplier and the external investment multiplier

In the case of the IIW, the EFSI Steering Board approved the methodology to calculate the multiplier on 26/10/2015.

In case of the SMEW: the SMEW notional internal guarantee multiplier is to be computed as the EFSI financing divided by,

respectively, (i) the portion of the EU Guarantee allocated to the support of the relevant operations; and (ii) the investments

from the RCR Mandate in the relevant operations. The SMEW external investment multiplier is to be computed as the total

SMEW investment (i.e., KPI 3) divided by the EFSI financing.

Windows IIW SMEW

Reference IIW Multiplier Calculation Methodology (approved by

the EFSI Steering Board on 26/10/2015)

EIF/EFSI Multiplier Calculation Methodology

Methodology

The notional internal guarantee multiplier and the external

investment multiplier are to be determined in line with the

IIW Multiplier Calculation Methodology.

The notional internal guarantee multiplier and the external investment

multiplier will be determined pursuant to the methodology set out in

the attached EIF Multiplier Calculation Methodology.

Formula

Notional [ex-ante] Internal Multiplier at project level

=

For equity and equity-type operations: 1

For debt-type operations: 4

External Multiplier = Total EFSI-eligible Investment

/ EFSI Financing amount

The Notional Internal Guarantee Multiplier will be calculated

pursuant to the formula set out in the attached EIF Multiplier

Calculation Methodology.

External Investment Multiplier = KPI 3 / EFSI financing

Aggregation

EIF will report separately on the figures for (i) the EFSI financing under COSME LGF, InnovFin SMEG and RCR (respectively,

as defined above); (ii) the COSME LGF and InnovFin SMEG contribution used up to the relevant date under EFSI; and (iii) the

investments from the RCR Mandate in the relevant operations.

For the calculation of a multiplier for a portfolio of operations, the multipliers will be calculated for the aggregated figures for

the i) portion of the EU Guarantee allocated (as applicable), ii) the EFSI Financing amount, iii) the Total Investment.


22

Examples

KMI 3

Utilization EU Guarantee EFSI Financing Total Financing

Debt Equity Total Debt Equity Total Debt Equity Total

IIW 1,250.0 1,000.0 2,250.0 5,000.0 1,000.0 6,000.0 20,000.0 18,000.0 38,000.0

SMEW 117.6 400.0 517.6 400.0 400.0 800.0 2,000.0 6,000.0 8,000.0

Aggregated 1,367.6 1,400.0 2,767.6 5,400.0 1,400.0 6,800.0 22,000.0 24,000.0 46,000.0

Notional Internal Multiplier 6,800.0 / 2,767.6 = 2.456961

Notional External Multiplier 46,000.0 / 6,800.0 = 6.764706

Notional Total Multiplier 2.456961 * 6.764706 = 16.62062


23

KMI 4: Employment impact

Definition as

per EFSI

Agreement

Forecast number of direct jobs to be created or, as regards multi-beneficiary intermediated loans, sustained (which shall be reported

separately);

For the SMEW, the forecast number of direct jobs will be created based on available information (i.e. surveys)

Windows IIW SMEW

References Standard methodology for its 3 Pillar Assessment

(3PA) as updated in CA/485/15 and CA/487/15s

n/a

Methodology

In case of investment projects, this refers to the

forecast number of direct jobs as estimated for

each project separately, both for project

implementation and for operation.

As regards multi-beneficiary intermediated loans, it

refers to jobs sustained, in line with standard 3PA

methodology.

Given the two separate concepts, an aggregation

of both figures would be misleading and it is

therefore proposed to report the two separately.

Debt operations in the form of

guarantee Equity product lines

The employment impact will be

calculated by the number of jobs

supported6

at the time of first

inclusion of the final recipient in the

relevant guarantee portfolio.

Direct jobs created will be

forecasted to the extent surveys are

available

The employment impact

will be calculated by the

number of jobs supported

at the time of the first

investment in the relevant

fund.

Direct jobs created will be

forecasted to the extent

surveys are available

Aggregation Figures for direct jobs and jobs supported will be reported separately but aggregated across both windows.

6

jobs supported is equivalent to jobs sustained


24

Windows IIW SMEW

Examples

KMI 4

Direct Jobs Created Jobs Sustained

Debt Equity Total Debt Equity Total

IIW 1,000 300 1,300 400,000 200,000 600,000

SMEW 0 300,000 200,000 500,000

Aggregated 1,000 300 1,300 700,000 400,000 1,100,000


25

KMI 5: Share of operations co-financed with NPBs

Definition as

per EFSI

Agreement

The share of operations co-financed with NPBs (by number of operations and amount)

For SMEW, the NPB co-financing is defined as the SMEW share of operations co-financed and/or risk-sharing with NPBs (both by

number of operations and amount).

Windows IIW SMEW

References The EIB/EIF will maintain a list of all banks and institutions falling into the NPB category.

Methodology

The following criteria will apply to determine NPB co-financing:

By number of operations: the total number of EFSI operations with NPB co-financing; and

By amount: the total signed amount of EFSI financing in operations involving NPB co-financing

Aggregation Based on the methodology above, an aggregated KMI will be calculated across windows.

Examples

KMI 5: NPB

By Number

Operations By Volume Operations

Share by Number Share by Volume



IIW-NPB 90 20 110 1,000 100 1,100

IIW 30% 40% 31% 25% 10% 22%

IIW-Total 300 50 350 4,000 1,000 5,000

SMEW-NPB 30 10 40 200 20 220

SMEW 30% 67% 35% 20% 33% 21%

SMEW-Total 100 15 115 1,000 60 1,060

Aggregated-NPB 120 30 150 1,200 120 1,320

Aggre-

gated 30% 46% 32% 24% 11% 22%

Aggregated-

Total 400 65 465 5,000 1,060 6,060


26

KMI 6: Share of operations co-financed with ESIF and other EU instruments

Definition as per EFSI

Agreement

The share of operations co-financed with European Structural and Investment Funds and other EU instruments other than

EFSI (by number of operations and amount);

Windows IIW SMEW

References n/a n/a

Methodology

The operations which involve EU co-financing will be

flagged in the system

By number: number of operation with EU co-financing

(incl. ESIF and EU-managed programmes)

By amount: sum of signed EFSI financing over all

operations with EU co-financing (incl. ESIF and EU-

managed programmes)

The following criteria will apply to determine the EU co-

financing for equity product lines (for debt operations not

applicable):

By number of operations: the total number of

transactions with EU co-financing in the equity sub-

window (incl. ESIF and EU-managed programmes);

and

By amount: the total volume of EFSI financing in

operations involving EU co-financing (incl. ESIF and

EU-managed programmes).

Aggregation Based on the methodology above, an aggregated KMI will be calculated across windows (similar to KMI5 table).

key performance indicators - key monitoring indicators ... · pdf filekey performance...

Documents