Presentation on theme: "1 DG Regio Open Days, Brussels, 6 October 2010 EIB instruments for local and regional authorities / EIB and the EU 2020 Strategy Risk Sharing Finance Facility."— Presentation transcript:
1 DG Regio Open Days, Brussels, 6 October 2010 EIB instruments for local and regional authorities / EIB and the EU 2020 Strategy Risk Sharing Finance Facility (RSFF) Marc Dhooge
2 DG Regio Open Days, Brussels, 6 October 2010 Banks A brief reminder … RSFF : a EUR 10 bn Risk Sharing Finance Facility EIB RSFF funds complement other sources of debt capital available for low/sub investment grade RDI intensive entities EIB RSFF funds are well suited to potential beneficiaries because: 1.Share risk on highly attractive terms & conditions (EIBs costs and not-for-profit risk pricing) 2.Long maturities of up to 10 years with longer for Research Infrastructure 3.Direct EIB participation of up to EUR 300m per transaction (depending on loan grading) 4.Strong technology/industry expertise 5.Signalling Effect: EIB as a quality stamp 6.Debt and Mezzanine Debt Product Investors Final Beneficiaries Low/Sub Investment Grade EIB (RSFF) EUR 1bn Approx. EUR 10bn Debt Financing Own Resources
3 DG Regio Open Days, Brussels, 6 October 2010 Risk Capital 1 CIP Resources (SME) 2 RSFF (SME / MidCap) Entrepreneur, friends, family Business Angels Seed/Early Stage VC Funds Formal VC Funds Bank Loans and Guarantees Seed / Start-Up PhaseEmerging Growth PhaseDevelopment Phase Facility: High Growth Innovative SME Scheme (GIF), Ecotech Purpose: IP financing, technology transfer, seed financing, investment readiness Target Group: VC Funds, Business Angels EIF Product: Fund-of- Funds CIP Guarantee schemes Growth financing for SMEs Formal VC Funds, CLOs SME guarantees (loans, microcredit, equity/mezzanine, securitisation FP7 RSFF RDI financing SMEs/MidCaps, Banks, PE Investors (sub- investment grade) Loans (incl. Mezzanine), Funded Risk Sharing Facilities with Banks (Investors) Investment Loans FP7 RSFF Investment Loans RDI financing MidCaps/Large Corporates/Public Sector Entities (investment grade) Loans, Guarantees Later Stage Counterparts 34 EIF EIB European Investment Bank EIB & EIF in support of the entire RDI value chain
4 DG Regio Open Days, Brussels, 6 October 2010 Risk Sharing Finance Facility Results 2007 – To Date RSFF Loan amount (in EURm) and number of RSFF Operations Approved/Signed/Disbursed 2010 RSFF Signature Target: EUR 2,145m (37% achieved to date) Target 2,145
5 DG Regio Open Days, Brussels, 6 October 2010 Signed RSFF Projects by Sector Main sectors financed so far :life science engineering industry and renewable energy technologies. By end September 2010 operations signed in 20 countries. Signed RSFF Projects by Country RSFF Signatures to end September 2010 Breakdown by Sector and Country
6 DG Regio Open Days, Brussels, 6 October 2010 Effectiveness Target group distribution
7 DG Regio Open Days, Brussels, 6 October 2010 Risk Sharing Finance Facility – Europe 2020 Mid Term Review Main Conclusions, Prospects and Next Steps The first phase of RSFF ( ) has now been successfully implemented and exceeds initial targets. Loans amounting to EUR 7.1bn (71% of total RSFF Facility) have been approved for projects in 21 countries and loans of EUR 4.6bn (46% of total RSFF Facility) have been signed for projects in 20 countries RSFF business pipeline of EUR bn in prospect for each of the years from 2010 to Subject to the decisions of Parliament and Council on the results of the current Mid- Term Review and the related decisions of EIB, the second phase will be characterised by: A selective deepening and widening of RSFF. Development of new RSFF products by EIB in collaboration with EC.
8 DG Regio Open Days, Brussels, 6 October 2010 Risk Sharing Finance Facility – The Regions Angle The need for new regional smart knowledge policies Need to address competitiveness gaps across EU MS and regions, particularly for those countries confronted with large public deficits (which usually puts pressure on RDI expenditure) Need to recognise the under-exploited opportunities for smart, local knowledge specialisation. No « one size fits all » scheme, but tailored RDI investment strategies Need for EU wide scheme that strengthens links between high regional performers in research, innovation and entrepreneurship, and promote the evolution of regional specialisation based on the growth of young innovative firms, based on diversity Make the provision of structural funds for RDI conditional upon delivery of a local, smart and open specialisation strategy.
9 DG Regio Open Days, Brussels, 6 October 2010 A Risk Sharing Finance Facility for Regions Some constructive thoughts Both DG REGIO and MS are committed to expansion of use of revolving and other structured instruments in the next programming period. Question mark: soft incentives or some form of compulsion ?? Make the RSFF EC Contribution a revolving mechanism, and increase it substantially for its post-2013 phase, for instance also with a contribution from Structural Funds for well-designed local, smart and open specialisation strategies In the light of the EU 2020 objectives for sustainable development, use RSFF as additional debt source for grant funding at Community level, to add a specific economic prioritisation – mid- to long-term income generation capacity – as a key to unlocking growth and competitiveness potential
10 DG Regio Open Days, Brussels, 6 October 2010 A Risk Sharing Finance Facility for Regions Some constructive thoughts Establishment of RSFF Facility dedicated to Cohesion and Convergence Regions. Scale up of programme requires a higher share of EC risk coverage than in current programme. Possible pilot programme in Based on experience with existing programmes (e.g. JEREMIE), development of new forms of public-private Risk Sharing Financial Facilities to meet RDI needs in regional development areas, also for Research Infrastructures projects, blending Structural Funds and risk based financing resources from EIB and other investors or intermediaries
11 DG Regio Open Days, Brussels, 6 October 2010 European Investment Bank Contact Details Marc Dhooge RSFF Programme Manager Phone: (+352) Fax: (+352) European Investment Bank 100, boulevard Konrad Adenauer L-2950 Luxembourg