European Investment Bank 19/09/2018 European Investment Bank

Investment Plan for Europe : Mobilising finance for investment: The EFSI, via EIB, to better address financing gaps in the EU, higher risk-financing and attracting private capital (Commercial Banks or Institutional Investors). Improved investment environment: regulatory and structural reforms for predictability, removing obstacles, aiming at a friendlier investment environment. Making finance reach the real economy: increased technical assistance & advisory by establishing European Investment Advisory Hub (EIAH) in EIB and by EC facilitating a project directory. 19/09/2018 European Investment Bank

European Investment Bank Eligible Sectors Operations consistent with European Union policies that support any of the following general objectives: Research, development and innovation Development of the energy sector in accordance with the Energy Union priorities Development of transport infrastructures, and equipment and innovative technologies for transport Financial support to entities having up to 3 000 employees, with a particular focus on SMEs and small mid-cap companies Development and deployment of information and communication technologies (IT) Environment and resource efficiency Human capital, culture and health 19/09/2018 European Investment Bank

EFSI Eligible Operations Typically higher risk profile than EIB’s normal operations Risk-absorbing products to foster the implementation of additional projects and support the development of SMEs and MidCaps Commercially sound Economically and technically viable Added value (additionality): transactions that would not otherwise be considered via traditional EIB lending. Investments boosting employment and growth Bank intermediation is possible Pricing commensurate with the risk – no subsidy element 19/09/2018 European Investment Bank

EIB Transport Lending Policy The EIB, as a European institution, continually seeks to focus on activities that are likely to have the greatest impact on furthering EU policy goals and has integrated these policy indications in its Transport Lending Policy. In financing the transport sector, the EIB prioritises its support to technologies and infrastructures with the objective of developing a more efficient and sustainable European transport system with a further use of renewable sources, contributing to reducing oil dependency and enhancing the competitiveness of the European industry. 19/09/2018 European Investment Bank

European Investment Bank EIB Transport Lending Providing long-term lending: EUR 653 bn from 2004-2014. Transport lending 20–25 % of total; TEN-T is 60% of transport lending. 19/09/2018 European Investment Bank

EIB financing of Railways - Examples Project Promoter Type of operation Project cost / Authorised loan amount (EUR m) Infrabel Rail Tunnel PPP (2006-0218) Infrabel Investment loan 750 / 350 TAV V - Linea Milano-Napoli (TEN) (2007-0178) RFI 19,560 / 1,300 ÖBB Infrastructure Renewal (2014-0253) ÖBB Infrastruktur 1900 / 600 Warsaw Railway Node Phase 1 (2014-0434) PKP PLK 230 / 115 Thameslink Rolling Stock (PPP) (2008-0610) Cross London Trains LTD 2,000 / 560 Mitsui Locomotive Leasing II (2010-0710) Mitsui Rail Capital Europe 280 / 100 French Regional Trains Programme (2013-0208) French Regions/ SNCF Programme (8 invest. loans) 2000 / 750 NS Rail Rolling Stock (2014-0696) NS 600 / 300 Programm Nahverkehr Baden-Württemberg (2014-0765) Land Baden-Württemberg 1,670 / 680 Trenitalia Regional Rolling Stock (2015-0364) Trenitalia 710 / 300 19/09/2018 European Investment Bank

EIB financing of ERTMS - Examples Project Promoter Type of operation Project cost / Authorised loan amount (EUR m) Rolling Stock and ERMTS equipment (2006-0472) Renfe Operadora “Standard” investment loan 1 064 / 530 GSM-R France (20080615) SYNERAIL (SPV) Availability-based PPP 745 / 355 Signalling HSL Albacete- Alicante (20100511) ADIF/Albali Señalización (SPV) 220 / 110 ERTMS & Safety infrastructure (20140262) ADIF AV 370 / 180 Some smaller ERTMS projects have been financed as part of EIB Framework Loans. 19/09/2018 European Investment Bank

EIB financing of ERTMS - Examples GSM-Railway France (availability based PPP) Construction of GSM-R network on 14 000 km of French rail network. Project cost estimated at EUR 745 m. EIB loan of up to EUR 355 m. The project is refinanced by EIB once the construction is completed LGV Sud Europe Atlantique Tours-Bordeaux EIB lending close to EUR 1.2 bn. Split across three products: Guaranteed tranche At-risk tranche Partial Traffic guarantee GSM-R EIB lending close to EUR 280 m. Direct (at-risk) lending only ERTMS for HSL Albacete-Alicante EIB lending close to EUR 80 m. Guaranteed tranche only 19/09/2018 European Investment Bank

EIB financing of ERTMS - Examples Signalling for HSL Albacete-Alicante (availability based PPP) Signalling and telecommunications equipment (incl. ERTMS) for high speed rail line between Albacete and Alicante (165 km) Project cost estimated at EUR 220 m EIB loan of up to EUR 110 m LGV Sud Europe Atlantique Tours-Bordeaux EIB lending close to EUR 1.2 bn. Split across three products: Guaranteed tranche At-risk tranche Partial Traffic guarantee GSM-R EIB lending close to EUR 280 m. Direct (at-risk) lending only ERTMS for HSL Albacete-Alicante EIB lending close to EUR 80 m. Guaranteed tranche only 19/09/2018 European Investment Bank

EIB financing of ERTMS - Examples ERTMS & Safety Infrastructure Signalling and telecoms, incl. ERTMS for Valladolid – Burgos (170 km) Vigo - Santiago (94 km) Santiago – A Coruña (61 km) Seville - Cádiz (152 km) Madrid Commuter Lines (267 km) Barcelona Commuter Lines (73 km) Project cost estimated at EUR 370 m EIB loan of up to EUR 180 m LGV Sud Europe Atlantique Tours-Bordeaux EIB lending close to EUR 1.2 bn. Split across three products: Guaranteed tranche At-risk tranche Partial Traffic guarantee GSM-R EIB lending close to EUR 280 m. Direct (at-risk) lending only ERTMS for HSL Albacete-Alicante EIB lending close to EUR 80 m. Guaranteed tranche only 19/09/2018 European Investment Bank

European Investment Bank Summary Potential financing opportunities for the deployment of ERTMS programmes through CEF & EFSI mandates EFSI support from the EC allows the EIB to take higher risk than traditional lending business Lending criteria: project must be financially and technically viable EIB’s lending guidelines and pricing remains in place Potential combination of grants and financial instruments to enhance credit profile of other senior lenders or bondholders. Tailoring structures according to borrower or sector needs. 19/09/2018 European Investment Bank

European Investment Bank Discussion – Q&A Thank You European Investment Bank 13