The European Union s financing institution

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Holly Burns
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2 THE EIB Created by the Treaty of Rome in 1958 Shareholders: 15 Member States of the European Union Subscribed capital: EUR 100 billion The European Union s financing institution 2

3 AN INSTITUTION Breakdown of subscribed capital EUR 100 billion 20% 17,7 17,7 17,7 17, ,5 5 4,9 4,9 3,3 2,5 2,4 0 1,4 1,3 0,9 0,6 0,1 DE FR IT GB ES BE NL SE DK AT FI GR PT IE LU Promoting European integration 3

4 LOAN SIGNATURES EUR 147 billion ( ) DE GR ES BE ALA Candidate countries DK Balkans Mediterranean ACP-OCT Other IT FR IE GB Project focus: no country or sector quotas SE FI PT AT NL LU 9

5 LOAN SIGNATURES IN THE EUROPEAN UNION EUR 127 billion ( ) 33% 10% 11% 2% 8% 36% About 60% for infrastructure By sector Energy Water management and sundry Communications Industry and services Education, health Global loans 10

6 EIB PROJECT ELIGIBILITY Regional development European communications infrastructure Natural and urban environment Energy International competitiveness of European industry and support for SMEs Human capital: education, health Projects promoting Union objectives 11

Energy International competitiveness of European industry and

7 EUROPEAN COMMUNICATIONS EUR 42 billion ( ) 27% 5% 15% 53% Arteries of the single market Land-based transport Air transport Sundry Tele-com. 13

8 EXTERNAL EU LENDING MANDATES (since February 2000) Partner for economic development Mio EUR Central and Eastern European countries ( ) Pre-accession facility ( ) Mediterranean countries ( ) ACP countries ( ) South Africa 825 ( ) Asia, Latin America ( ) 24

facility 8 500 (2000-2003) Mediterranean countries 6 425 (2000-2006) ACP countries

9 FINANCING EU ENLARGEMENT In 2000, some EUR 2.9 billion for investment in the 10 applicant countries in Central and Eastern Europe New EUR 8.5 billion Pre-Accession Facility for Central European candidates and Cyprus in the period New EUR 8.68 billion EU lending mandate for 10 Central and Eastern European applicant countries and Albania, Bosnia-Herzegovina and FYR of Macedonia in the period FOCUS: Communications infrastructure (including TENs) Regional development Industrial competitiveness Environmental protection Strengthening support for enlargement 35

68 billion EU lending mandate for 10 Central and Eastern European applicant countries and Albania, Bosnia-Herzegovina and FYR of Macedonia in

10 DECISION-MAKING STRUCTURE Board of Governors 15 Members Board of Directors Audit Committee 25 Directors 13 Alternates Management Committee President 7 Vice-Presidents SG OP1 OP2 OP3 FI PJ JU EI AI EV CRD Internal audit Operations evaluation Credit risk General secretariat Western Europe Central Europe Outside the EU Finance Projects directorate Legal affairs Economics and information An autonomous decision maker 37

Internal audit Operations evaluation Credit risk General secretariat Western Europe Central Europe

11 EIB: PROJECT CYCLE EIB eligibility Promoter s request Banking criteria Staff teams Economic Financial Technical Environmental Management Committee Lawyers Contract negotiation Board of Directors Loan approval Contract signature Monitoring Project Borrower Guarantor A sound project portfolio 38

Committee Lawyers Contract negotiation Board of Directors Loan approval

12 EIB LENDING ADVANTAGES Long maturities Low cost Added value, cross-border multi-sectoral know-how Catalyst for other funding Makes things happen 39

13 WHO CAN BORROW? Government authorities/agencies Banks Municipalities Private companies Private and public equally served 40

14 PROJECT DETAILS THE EIB NEEDS: General and legal information about the enterprise, its principal partners or sponsors Technical and environmental data of the project Economic data (market, jobs created, economic rate of return) Financial data (operating costs, depreciation and overheads, projected trading accounts including working capital, credits to customers, suppliers credits, balance sheet and financial statements for the same period, financing plan for the project and schedule of projected expenditure) Compliance with environmental protection and procurement regulations Guarantee security A test for sound investment 43

including working capital, credits to customers, suppliers credits, balance sheet and financial statements for the same period, financing plan for the

15 14 PRIORITY TRANS-EUROPEAN TRANSPORT NETWORK PROJECTS (TENS) High-speed train Standard train (passenger, freight or combined) Motorway or road Airport Railroad fixed-link (tunnel + bridge) Binding Europe together 44

freight or combined) Motorway or road Airport

16 TRANS-EUROPEAN NETWORKS AND EUROPEAN TRANSPORT CORRIDORS EIB financed projects ( ) TENs network Section financed Other infrastructure Transport corridors, CEC Section financed Road/Rail Airport Air traffic management Port Intermodal freight centre Electricity Gas Oil/Gas platform 45

Transport corridors, CEC Section financed Road/Rail Airport Air traffic

Annual Press Conference

Annual Press Conference Exceptional response for exceptional times Werner Hoyer EIB Group President - 28 February 2013-28/02/2013 European Investment Bank Group 1 Capital increase Exceptional response