European Investment Bank Group Investment Plan for Europe The European Fund for Strategic Investments (EFSI) : financing for SMEs, start-ups and many more sectors Maria Shaw-Barragan Head of Strategy Division Presentation in the Cyprus Funds Summit Nicosia, 9 October 2015 European Investment Bank Group

European Investment Bank Group Introduction to the EIB: the EU bank Shareholders are the 28 Member States Largest multilateral lender and borrower in the world Raising funds on the international capital markets Pass on favourable borrowing conditions to clients Some 440 projects each year in over 160 countries Headquartered in Luxembourg and 30 local offices Around 2 400 staff: Finance professionals, engineers, sector economists and socio-environmental experts More than 50 years of experience in financing projects European Investment Bank Group

European Investment Bank Group EIB Lending Priorities (2014 activity volumes) * includes EIB Group support to SMEs in the EU only European Investment Bank Group

European Investment Bank Group Investment Plan for Europe: 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: stepped-up technical assistance / advisory by establishing European Investment Advisory Hub (EIAH) in EIB and by EC facilitating a project directory 3. Mobilising finance for investment: The European Fund for Strategic Investments (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

European Fund for Strategic Investments (EFSI) EFSI: setup European Fund for Strategic Investments (EFSI) EFSI is NOT a fund or a separate legal entity It is a contractual arrangement between EC & EIB Group EFSI consists of: EUR 16bn EC guarantee in favour of EIB EUR 5bn capital contribution by EIB Target of generating EUR 315bn investment in 3 yrs All operations are EIB Group operations

EFSI: What kind of operations? Impact-oriented operations: objective to maximise economic impact in EU through increased investments Flexible, diverse products: adapted to client’s needs Risk-absorbing products to trigger investments with higher risk profile (additionality) Commercially sound operations, economically and technically viable (bankability) Maximising private finance / capital All 28 EU Member States coverage (and cross border) Focus on employment creation and retention Pricing commensurate with the risk (no subsidy) Application for EIB loan directly to EIB or EIF or EIB Group partner institution, no separate project list / route via authority or government

EFSI: what kind of products products ? SOURCES OF FUNDING TYPICAL PRODUCTS OFFERED FINAL RECIPIENTS AND TYPICAL PROJECTS Long-term senior debt for higher risk projects Equity and quasi-equity Subordinated loans Other investors join in on a project basis Transport infra Energy infra Broadband infra, ICT Energy Resource efficiency Renewable energy Research Health and Education Innovation SMEs Long-term investment funds The Fund serves as credit protection for new EIB activities European Fund for Strategic Investments Urban and Social MidCaps European Investment Bank Group

EIB Group: helping business at every stage of their development Public stock or capital markets Portfolio Guarantees & Credit Enhancement VC Funds, Lower Mid-Market & Mezzanine Funds Social Impact Funds VC Seed & Early Stage Microcredit Business Angels, Technology Transfer PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH DEVELOPMENT SME Development Stages European Investment Bank Group

European Investment Bank Group EFSI: how can you access it ? 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 Nicos Yiambides (n.yiambides@eib.org) 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 European Investment Bank Group

European Investment Bank Group