investment plan for europe partnership of ec and eib to establish the european fund for strategic...

Investment Plan for Europe

Partnership of EC and EIB to establish the European Fund for

Strategic Investments (EFSI)

Maria Shaw-BarraganHead of Strategy Division

Commission for Territorial Cohesion Policy and EU BudgetCommittee of the Regions Brussels, 2nd March 2015

02/03/2015 1European Investment Bank Group

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 environment2. Enhanced EIB-EC-MS cooperation on project identification

(the task force) and stepped-up technical assistance3. 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

Every piece of the puzzle counts


Pipeline of viable projects

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

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No automatic financing by EC or the EIB for these projects

European Investment Bank Group

European Investment Bank Group 5

What is the EFSI (European Fund for Strategic Investments)?

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)

02/03/2015

European Fund for Strategic Investments (EFSI)

6European Investment Bank Group02/03/2015

Delivering on the 2013 capital increase to EIB


180 billion mobilised by March 2015, ahead of December 2015 target

Mobilising new investment


EFSIEIB

Group


Eligible sectors

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.

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EIB in charge of verifying that eligibility criteria are properly applied


Eligible counterparts

Corporates of all sizes

Utilities

Public sector entities

SMEs (below 250 employees) or MidCaps (below 3,000

employees)

NPBs or commercial banks for intermediation

Dedicated investment platforms possible

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EIB normal “know your customer” and compliance requirements


Eligible operations

Commercially sound

Economically and technically viable

Added value (additionality)

Investments boosting employment and growth

Bank intermediation is possible

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Provide risk-bearing capacity to foster the implementation of additional projects and to support the development of SMEs and MidCaps


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


SME Window

02/03/2015

• EUR 2.5bn provided by EIB • EUR 2.5bn

guarantee cover provided

by EU

• - Accelerated and additional financing

support to SMEs and mid-caps

• - Removing market gap

• EUR 75bn of investments in SMEs and mid-

caps


Next steps

02/03/2015

EU law-making process

Operational preparation

and

follow-up

Agreement on draft

Regulation

• Fast-track approval

by EU legislators

• Entry into

force

• Progress review and further

options considered

• European Investment Bank starts

activities using own resources• Project identification continues,

also based on Task-Force report

• Work starts on building • Investment Advisory Hub

•The EFSI is operational

•A transparent EU project pipeline is in place

The Investment Advisory Hub starts functioning

March 2015Jan. 2015 June 2015 Mid 2018

Q & A … Thank you!


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