European Investment Bank Group Investment Plan for Europe Partnership of EC and EIB to establish the European Fund for Strategic Investments (EFSI) Sofia, 18th June 2015 European Investment Bank Group

Investment Plan for Europe: context The Investment Plan for Europe consists of three strands: Improved investment environment: regulatory and structural reforms at EU and national levels for predictability, removing obstacles, aiming at a friendlier investment environment Making finance reach the real economy: enhanced EIB-EC-MS cooperation on project identification (the “Project Directory”) and stepped-up technical assistance / advisory Mobilising finance for investment: The EFSI, via 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 European Investment Bank Group

Every piece of the puzzle counts European Investment Bank Group

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/Guarantee 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 (National Promotional Institutions, investment platforms, private sector entities) European Investment Bank Group

European Fund for Strategic Investments (EFSI) European Investment Bank Group

Mobilising new investment EFSI EIB Group European Investment Bank Group

European Investment Bank 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. EIB in charge of verifying that eligibility criteria are properly applied European Investment Bank Group

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 EIB normal “know your customer” and compliance requirements European Investment Bank Group

European Investment Bank Group Eligible operations Commercially sound Economically and technically viable Added value (additionality) Investments boosting employment and growth Bank intermediation is possible Pricing commensurate with the risk – no subsidy element - Typically higher risk profile than normal EIB’s normal operations - Risk-absorbing products to foster the implementation of additional projects and to support the development of SMEs and MidCaps European Investment Bank Group

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 If you know the EIB, get in touch with your normal contact person 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 EIB InfoDesk European Investment Bank Group

SME Window of EFSI deployed by EIF 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 European Investment Bank Group

European Investment Advisory Hub (EIAH) European Investment Bank Group Project promoters Public authorities Member States Private sector Web content + Web portal + Help Desk team European Investment Advisory Hub (EIAH) Managed by EIB in partnership with EC EIB’s existing advisory programmes and activities Additional advisory and technical assistance EIAH’s partner institutions’ expertise Project support (JASPERS, project preparation and implementation support) Financial instruments (fi-compass, bilateral services for MAs) Access to finance (InnovFin Advisory, EPEC, NPST) New investment support also in areas relevant to the scope of EFSI (could be delivered by EIB advisory or operational teams) Identification of needs as they arise Network of institutions incl. EIB Group, EC, National Promotional Banks, etc. Integrated collaboration model European Investment Bank Group 12

Operational preparation European Investment Bank Group Next steps Jan. 2015 March 2015 June 2015 Mid 2018 EU law-making process Agreement on draft Regulation Fast-track approval by EU legislators Entry into force Progress review and further options considered Operational preparation and follow-up European Investment Bank starts activities using own resources The EFSI is operational A transparent EU project pipeline is in place The Investment Advisory Hub starts functioning Project identification continues, also based on Task-Force report Work starts on building Investment Advisory Hub European Investment Bank Group

Questions for discussion The key to EFSI success is an improved investment environment to mobilize private sector financing. Where do we stand with PPP laws in SEE countries? Are they enough to promote public/private partnerships? Are there well prepared projects which could attract private sector financing? The instruments have already been deployed in the past (TA, advise, etc.) and EFSI will re-enforce them. What is missing? A sense of project’s ownership? Is there a private sector appetite (namely banks) for higher risk-profile projects, of course supported by EFSI? 02/02/2019 European Investment Bank Group

European Investment Bank Group