1. European Investment Bank
19/09/2018
European Investment Bank

2. 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

3. 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 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

4. 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

5. 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

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

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

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

9. EIB financing of ERTMS - Examples
GSM-Railway France (availability based PPP)
Construction of GSM-R network on 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

10. 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

11. 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

12. 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

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