1. European Investment Bank
EUROPEAN INVESTMENT BANK Promoting European objectives EIB Financing in the Baltic Sea Region
European Investment Bank

2. European Investment Bank
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
2009 key figures:
European Union: EUR 70.5 bn
Partner countries: EUR bn
Total lending: EUR 79.4 bn
Borrowings: EUR 79.4 bn
Subscribed capital EUR 232.4bn (at 31/12/2009)
Previously known as regional Development when the Bank was first established. Until 2007 this was known as Social and Economic Cohesion.
Many projects fall under this objective as well as another e.g. an RDI project in a convergence area falls under both Cohesion and Convergence and i2i
European Investment Bank

3. The European Investment Bank (EIB) European Priority Objectives
Within the Union:
Cohesion and convergence (“regional development”)
Small and medium-sized enterprises (SMEs)
Environmental sustainability
Promoting a competitive knowledge economy; education, RDI
Trans-European Networks (TENs)
Sustainable, competitive and secure energy
Previously known as regional Development when the Bank was first established. Until 2007 this was known as Social and Economic Cohesion.
Many projects fall under this objective as well as another e.g. an RDI project in a convergence area falls under both Cohesion and Convergence and i2i
EIB in support to EU2020 objectives
European Investment Bank

4. EIB Lending in the Baltic Sea Region in 2007-2009
(EUR m)
Signatures
2007
2008
2009
Member States
Denmark
209
379
422
Estonia - 87
842
Finland
613
710
1,145
Germany (1)
110
480 52
Latvia 35
860
285
Lithuania 20 10
1,169
Poland
2,281
2,837
4,784
Sweden
713
1,311
1,135
EFTA
Iceland
146
170
Norway
EASTERN
Russia
133
Total
4,127
6,675
10,136
Previously known as regional Development when the Bank was first established. Until 2007 this was known as Social and Economic Cohesion.
Many projects fall under this objective as well as another e.g. an RDI project in a convergence area falls under both Cohesion and Convergence and i2i
Schleswig-Holstein, Hamburg, Mecklenburg-Vorpommern
European Investment Bank

5. EIB Lending in Baltic Sea Region Member States
EIB lending covers all six priority objectives
Signatures EUR 6,675 m in 2008 and EUR 10,136 m in 2009
EIB borrowers are:
(i) Public sector entities: Sovereign Member States, municipalities and other sub-sovereign public entities
(ii) Private sector entities: leading corporates in all countries requiring financing for their capex and R&D investments
(iii) Financial institutions as Intermediaries for EIB’s Loan for SMEs and Mid-Cap Loans
In Finland, Sweden, Denmark and Germany, a large proportion of EIB lending is in favour of private sector (knowledge economy and RDI)
In Estonia, Latvia, Lithuania and Poland, main emphasis is on (i) the public sector through loans to meet the national co-financing requirements for the implementation of the EU Funds supported project and (ii) major capital expenditure projects to enhance Cohesion and convergence
EIF also provides support to SMEs in the form of venture capital
This was a new priority for the Bank business plan in 2006 but has long been a lending hotspot.
European Investment Bank

6. European Investment Bank
The European Investment Bank (EIB) Long-term Finance Promoting European Objectives
EU Funds Co-Financing Latvia (EUR 750 m, 2008/9)
EU Funds Co-Financing Lithuania (EUR 1132 m, 2009)
EU Funds Co-Financing Estonia (EUR 550 m, 2009)
Co-financing of national contributions to the implementation of three Operational Programmes with EU funds.
Aims at sustainable development of economic competitiveness and the promotion of social and regional cohesion.
The priority projects are particularly in the sectors of transport infrastructure, RDI, environment and urban development.
EIB makes a significant contribution to finance the implementation of the Operational Programmes in the three Baltic states
These are the 6 priority objectives of the Corporate Objective Plan (COP) which is the Bank’s rolling business plan
European Investment Bank

7. EIB Lending in the EU’s Eastern Neighbours
The EIB finances projects in Ukraine, Moldova, Armenia, Azerbaijan, Georgia and Russia on the basis of an EU mandate of EUR 3.7 billion for the period *
EIB has signed and approved financing operations totalling over EUR 1.3 billion for major investment projects in the region in the past three years.
Sectors supported: transport, telecoms, energy and environment
Eastern Partners Facility -the EIB has set up a new facility for Ukraine, Moldova, Belarus, Georgia, Armenia, Azerbaijan and Russia of up to an amount of EUR 1.5 billion, with a ceiling of EUR 500 million for projects financed in Russia. The facility enables the EIB to provide loans and/or guarantees that, sector-wise, go beyond the scope of the Mandate. This should help support EU investment in the region, notably by European corporates, as well as facilitate equity investments in infrastructure funds of EU interest
Projects financed in Russia under the Mandate:
St. Petersburg Vodokanal III: Neva Direct Discharges Closure Programme in St. Petersburg, EUR 18 m
Modernisation of Nevinnomyssk GRES power plant in Southern Russia, EUR 250 m
Rollout of third-generation UMTS-based mobile broadband services, EUR 115 m
EIF also provides support to SMEs in the form of venture capital
This was a new priority for the Bank business plan in 2006 but has long been a lending hotspot.
* Operations in Belarus are subject to joint EU Parliament/Council decision. Azerbaijan will also be eligible for EIB financing following the signature of the framework agreement with the Bank
European Investment Bank

8. European Investment Bank
The European Investment Bank (EIB) Long-term Finance Promoting European Objectives
Available EIB products/instruments
Investment Loans, suitable for large individual projects
Framework Loans, suitable for multi-scheme projects, of which Structural Programme Loans in co-funding with EU Structural Funds
Global Loans/Credit Lines, lending to financial intermediaries who on-lend to smaller projects, suitable for instance for SMEs
Technical Assistance and Financial Engineering;
JASPERS, support for new Member States to help them prepare large projects applications to the Structural Funds;
JEREMIE, promoting SME access to finance projects via holding funds;
JESSICA, promoting urban development projects;
JASMINE, support to Micro-Finance Institutions in Europe
These are the 6 priority objectives of the Corporate Objective Plan (COP) which is the Bank’s rolling business plan
European Investment Bank

9. European Investment Bank
Value-added of EIB financing
EIB financing:
Long-term senior investment loans
Financing for up to 50% of project cost (minimum project cost for a direct EIB loan approximately EUR 25 million, i.e. minimum loan EUR 12.5 million)
Long maturity matching economic life of project assets
EIB financing offers financial value-added
Sector expertise
Catalytic effect on participation of other financing partners
Lisbon Agenda – i2i was the Bank’s response to this initiative.
Figures falling short mid-way into the process i.e but a push is on now to increase lending in i2i.
i2i is being supported by a range of finance facilities and support mechanisms – action for Growth. This included the Risk-sharing finance facility, encouraging the EIB to take on projects with greater risk, where the ramp-up risk at the start of the project is guaranteed by the European Commission.
European Investment Bank

10. European Investment Bank
EIB Project Cycle
Lisbon Agenda – i2i was the Bank’s response to this initiative.
Figures falling short mid-way into the process i.e but a push is on now to increase lending in i2i.
i2i is being supported by a range of finance facilities and support mechanisms – action for Growth. This included the Risk-sharing finance facility, encouraging the EIB to take on projects with greater risk, where the ramp-up risk at the start of the project is guaranteed by the European Commission.
European Investment Bank

11. EIB Participation to EU Strategy for the Baltic Sea Region
Close co-operation with European Commission at the design and preparation phase
EIB presence in the implementation of the Strategy in close co-operation with other IFIs (notably NIB & EBRD) and organisations in the macro region
EIB operates in the macro region – extensive network
Two regional offices
Warsaw
Helsinki
JASPERS, JEREMIE and JESSICA presence in the region
Lisbon Agenda – i2i was the Bank’s response to this initiative.
Figures falling short mid-way into the process i.e but a push is on now to increase lending in i2i.
i2i is being supported by a range of finance facilities and support mechanisms – action for Growth. This included the Risk-sharing finance facility, encouraging the EIB to take on projects with greater risk, where the ramp-up risk at the start of the project is guaranteed by the European Commission.
European Investment Bank

12. European Investment Bank
The BSS Trust Fund Idea
EIB is willing to explore the potential for a BSS Trust Fund
The Trust Fund could develop TA activities in the Baltic Sea Region countries with special focus on the Flagship Projects of the EUSBSR
The Trust Fund would reinforce and complement JASPERS which mainly serves the preparation phase of projects related to Structural Funds project applications
The Trust Fund would focus on
1) Preparation of investment projects which are of importance for the EUSBSR without falling under the remit of JASPERS (e.g., because not drawing on grants from EU Structural Funds)
2) Technical support to the implementation of investment projects, whether prepared by JASPERS or not
Lisbon Agenda – i2i was the Bank’s response to this initiative.
Figures falling short mid-way into the process i.e but a push is on now to increase lending in i2i.
i2i is being supported by a range of finance facilities and support mechanisms – action for Growth. This included the Risk-sharing finance facility, encouraging the EIB to take on projects with greater risk, where the ramp-up risk at the start of the project is guaranteed by the European Commission.
European Investment Bank

13. The Establishment of the BSS Trust Fund
The Trust Fund could be established in association with the EIB
It could draw on contributions from (i) multilateral contributors, e.g., the Commission, (ii) bilateral contributors, such as EU Member States and their development agencies, (iii) other countries and their institutions and (iv) IFIs active in the BSR
The details of the Trust Fund would have to be worked out with the participating Member States and the Commission; they should be based upon cost-recovery principles compatible with EIB’s policy in relation to Trust Funds
The Trust Fund would be available for TA only, and not for investment co-financing, loan guarantee cost financing, interest rate subsidy or risk capital operations
As the Fund Manager EIB could provide its own EIB technical and financial expertise, but could also provide assistance through hiring external consultants
Lisbon Agenda – i2i was the Bank’s response to this initiative.
Figures falling short mid-way into the process i.e but a push is on now to increase lending in i2i.
i2i is being supported by a range of finance facilities and support mechanisms – action for Growth. This included the Risk-sharing finance facility, encouraging the EIB to take on projects with greater risk, where the ramp-up risk at the start of the project is guaranteed by the European Commission.
European Investment Bank

14. European Investment Bank
For more information…
Jaani Pietikäinen
EIB Helsinki Office
Tel: (+358)
European Investment Bank