1. 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

2. 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

3. Every piece of the puzzle counts
European Investment Bank Group

4. 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

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

6. Mobilising new investment
EFSI
EIB
Group
European Investment Bank Group

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. European Investment Bank Group