1. Investment Plan for Europe Partnership of EC and EIB to establish the European Fund for Strategic Investments (EFSI) Luxembourg, 24 March 2015 24/03/20151 European Investment Bank Group

2. Investment Plan Europe - Rationale 28/02/20132 European Investment Bank Group EU investment & competitiveness gap High liquidity in the market Public budget constraints Financial and non-financial barriers to investment EU Investment Plan EU/MS policy action + EU budget + EIB capacity to mobilise private sector funds towards strategic investments.

3. Investment Plan Europe – 3 Pillars 28/02/20133 European Investment Bank Group  Boost to strategic investment and access to finance for SMEs and mid-cap companies via the European Fund for Strategic Investment (EFSI) – EIB/EIF  Cooperation with National Promotional Banks and the EIB 1. MOBILISING FINANCE FOR INVESTMENT  Investment Project Portal  European Investment Advisory Hub: technical assistance 2. MAKING FINANCE REACH THE REAL ECONOMY  Predictability and quality of regulation  Removing non-financial, regulatory barriers in key sectors within EU Single Market  Structural reforms at national level 3. IMPROVED INVESTMENT ENVIRONMENT Aim: to mobilise at least €315 billion in investment across the EU

4. Every piece of the puzzle counts 24/03/20154 European Investment Bank Group

5. Pipeline of viable projects  Task Force EC-EIB-Member States: Member States were asked to identify potentially viable projects of European relevance to be realised in the short and medium term  Identified around 2,000 projects across Europe worth some EUR 1.3 trillion of potential investments Outcome: a forward-looking and transparent pipeline of investable projects. Purpose: to create confidence and encourage investors to invest and build expertise in Europe 24/03/2015 5 No automatic financing by EC or the EIB for these projects European Investment Bank Group

6. 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 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 (Member States, National Promotional Banks, investment platforms, private sector entities) 24/03/2015 European Investment Bank Group 6

7. European Fund for Strategic Investments (EFSI) 7 European Investment Bank Group 24/03/2015

8. Delivered on the 2013 capital increase to EIB 24/03/20158 European Investment Bank Group 180 billion mobilised by March 2015, ahead of December 2015 target

9. Mobilising new investment 24/03/2015 9 European Investment Bank Group EFSI EIB Group

10. General Objectives: Wide eligibility Additionality: address market failures or sub-optimal investment situations could not / to same extent have been carried out in the period without EFSI higher risk profile: typically EFSI operations, as well as EFSI portfolio Additionality considered if risk corresponding to EIB Special Activities General Objectives: EIB initial verification that eligibility criteria are applied research, development and innovation development of the energy sector development of transport infrastructures, equipment and innovative technologies for transport financial support through the EIF and EIB to entities having up to 3000 employees, with a particular focus on SMEs and small mid-cap companies development and deployment of information and communication technologies environment and resource efficiency human capital, culture and health 28/02/201310 European Investment Bank Group

11. Instruments and Counterparts Initial Investment Period: contract to be signed by June 2020 Eligible Instruments Infrastructure and Innovation Window: loans, guarantees, counter-guarantees, capital market instruments any other form of funding or credit enhancement instrument, Participation in funds and quasi-equity Including bilateral cooperation with National Promotional Institutions (NPI) and Multilateral Platforms Eligible Counterparts: EIB normal “know your customer” & compliance requirem. entities of all sizes, including utilities, SPVs or project companies, SMEs or mid- cap companies, NPIs or financial institutions for intermediation, investment platforms, equity/debt funds and any other form of collective investment vehicles, public sector entities (territorial or not, but excluding direct Member State risk) and public sector type entities. 28/02/201311 European Investment Bank Group

12. How will the EFSI operate? Role of EIB / EIF  All operations are EIB or EIF operations  EIB and EIF normal appraisal and processes apply, including economic and technical viability  EIB governing bodies approve every operation  EFSI specific information: Additionality, mobilitation of investment and private capital  EFSI increases EIB risk bearing capacity, but does not involve subsidy (normal pricing) Role of the Investment Committee = Decision on EU Guarantee, likely to involve: Contribution to EFSI and EU policy objectives Quality and Soundness of the project (including growth and imployment) Technical and financial contribution to the project European Investment Bank Group 12

13. 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 24/03/2015 European Investment Bank Group 13 - 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

14. 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 24/03/2015 European Investment Bank Group 14 -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

15. SME Window of EFSI deployed by EIF 24/03/2015 European Investment Bank Group 15 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

16. European Investment Bank Group 16 Project promotersPublic authoritiesMember StatesPrivate sector  Project support (JASPERS, project preparation and implementation support)  Financial instruments (fi- compass, bilateral services for MAs)  Access to finance (InnovFin Advisory, EPEC, NPST) EIB’s existing advisory programmes and activities European Investment Advisory Hub (EIAH)  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 Additional advisory and technical assistance EIAH’s partner institutions’ expertise Web content + Web portal + Help Desk team Managed by EIB in partnership with EC European Investment Advisory Hub (EIAH) 24/03/2015

17. Next steps European Investment Bank Group 17 EU law- making process Operational preparation and follow-up Agreement on draft Regulation Fast-track approval by EU legislators Entry into force Progress review and further options considered European Investment Bank starts activities using own resources Project identification continues, also based on Task-Force report Work starts on building Investment Advisory Hub The EFSI is operational A transparent EU project pipeline is in place The Investment Advisory Hub starts functioning March 2015Jan. 2015 June 2015 Mid 2018

18. Q & A … Thank you! 24/03/2015 18 European Investment Bank Group