The EIB and the Investment Plan for Europe Overview. EARTO ANNUAL CONFERENCE Luxembourg, 29 April 2015

Transcription

1 The EIB and the Investment Plan for Europe Overview EARTO ANNUAL CONFERENCE Luxembourg, 29 April 2015 Klaus Trömel Director General, Head of Lending

2 at a glance Created with the Treaty of Rome in 1958 and owned by 28 EU Member States EU s policy-driven, long-term lending institution Self-sustaining, non-profit maximizing institution Sizeable subscribed capital of 242 billion (end 2014 own funds 61 billion) Largest Multilateral lender and borrower in the world Highest credit rating, 0% risk-weighted and the only supranational bank with direct access to a central bank liquidity (ECB) Projects in over 160 countries Parent company of the European Investment Fund (EIF) EIB Ratings Long-term Outlook Moody s Aaa Stable S&P AAA Stable Fitch AAA Stable 2

3 EIB so far: EIB Group activity until 2014 Climate action, 19.1 Innovation and skills, 14.7 Smaller enterprises, 25.5 Strategi c infrastructur e, 20.6 Capital increase supported activity 3

4 EIB financing of large research infrastructures Profile and Size: companies and research organisations implementing large research infrastructures, including projects identified in the ESFRI (European Strategy Forum on Research Infrastructures) Roadmap No size restriction Ownership: public and private law bodies, or mixed entities with (partial) public participation established in European Union Member States or Associated Countries (i.e. Iceland, Liechtenstein, Norway, Switzerland, Israel, Turkey, Croatia, Serbia and Moldova) Legal form: any legal form established under relevant national law, including associations or foundations, provided the promoter has the legal capacity to assume financial obligations Financial profile: the promoter needs to demonstrate that, on the basis of public budgetary contributions to its operating and investment expenses, or through cash flow generated from its regular commercial activities, it has the sustainable capacity to service its financial obligations Financing products available: The ESFRI RSFF Capital Facility (InnovFin Large Projects) 4

5 Key Challenges in Financing Research Infrastructures Capital and Operating Costs / Fit-for purpose Project definition/change order process; cost escalation/ control; time and budget; risk management Operating budget Timing gaps and certainty/sufficiency of Public sector budget commitments GAPs in Full Cost financing strategy at outset, thereby causing delays to implementation as well as cost increases and uncertainty 5

6 Recent EIB financings of Research Infrastructure Projects Project Name Country Signed Exposure (EUR M) ALPHASAT UK SINCROTRONE TRIESTE EXTENSION Italy 20.0 ION BEAM APPLICATIONS Belgium 48.7 EUROPEAN SOUTHERN OBSERVATORY E-ELT Germany OXFORD INSTRUMENTS R&D Finland, Germany, UK 30.8 COOPERATION IN SCIENCE AND TECHNOLOGY (COST) Belgium EXTREME LIGHT INFRASTRUCTURE (ELI) Hungary

7 Investment Plan for Europe: Context Three strands: 1. Improved investment environment: regulatory and structural reforms at EU and national levels for predictability, removing obstacles, aiming at a friendlier investment environment 2. Making finance reach the real economy: enhanced EIB group-ec- MS cooperation and stepped-up technical assistance / advisory 3. Mobilising finance for investment: The EFSI, via EIB group, to better address the current shortage of (higher) risk-financing in EU Aim: mobilise at least 315 billion in investment across the EU 7

8 European Fund for Strategic Investments (EFSI) 8

9 Every piece of the puzzle counts 9

10 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 10

11 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 group normal know your customer and compliance requirements 11

12 Eligible operations Commercially sound Economically and technically viable Added value (additionality) Investments boosting innovation, competitiveness, 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 12

13 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 - If in doubt, check out the EIB web page or contact the EIB InfoDesk 13

14 European Investment Advisory Hub (EIAH) 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 Project support (JASPERS, project preparation and implementation support) Financial instruments (ficompass, bilateral services for MAs) Access to finance (InnovFin Advisory, EPEC, NPST) Additional advisory and technical assistance 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 EIAH s partner institutions expertise Network of institutions incl. EIB Group, EC, National Promotional Banks, etc. Integrated collaboration model 14

15 Innovation Finance Advisory supports innovative projects to gain access to EFSI and other funding sources Project Advisory Improve bankability/investment readiness Enable earlier/ faster access to finance Horizontal Activity Improve framework conditions for financing Develop business case for new financing mechanisms in RDI sectors Hydrogen Mobility Germany Arctic Arc Testing Facility Myrrha European Lead Factory (ELF) European Spallation Source (ESS) Global TB Vaccine Partnership Infectious Diseases Financing Facility (IDFF) Circular Economy (CE) Key Enabling Technologies (KETs) Bio -Economy Strategic Energy Technology Plan (SET Plan) Financing options for Pan- European RI Web tool to guide innovative companies Enable maximum access to finance for innovative projects 15

16 More information at: Tel.:

17 Annex background information 17

18 Enablers of competitiveness: infrastructure Annual shortfalls in infrastructure investments Additional 100bn to upgrade energy networks to integrate renewables, improve efficiency and ensure security of supply Additional 50bn to upgrade transport networks to reduce congestion costs and trade bottlenecks, Additional 55bn to reach the EU s Digital Agenda standards in broadband and data centre capacity, Additional 90bn to rehabilitate environmental services and ensure water security in the face of climate change. Examples Reinforced and smarter grids Improved interconnections Energy efficiency of existing buildings High-efficiency combined heat and power Offshore wind capacity Motorway reconstruction & widening Urban bypasses Rail corridors New container and LNG terminals Airport capacity and air traffic management Fibre-based and mobile (4G) broadband Open networks in thinly populated areas Large and secure data centres for intra-eu IP traffic Secure ICT applications for SMEs and public administration Flood risk protection Water network, waste water treatment and water efficiency Material recovery 18 18

19 EIB provided Financing to the CERN Project First Research Infrastructure project financed by EIB Signed in 2002 EIB Bridge Loan to cover a funding gap of EUR300m due to cost overrun. EIB funding maintained project momentum and smoothed cash calls on CERN members EIB loan of up to EUR300m Term: up to 15 years (7 year grace) Security/guarantee: Public Sector obligation of the CERN MS Statutory Framework comprising Establishing Convention, a Financial Protocol and a Protocol on Privileges and Immunities 19

20 EIB financed the ESO- ELT Project Financed under the RSFF- Research Infrastructure Compartment Signed in 2012 EIB loan to serve as bridge /contingency loan to mainly smooth the first 6 years of construction period EIB funding sourced prior to construction start EIB loan of up to EUR300m Term: up to 30 years Security/guarantee: Public Sector obligations of the ESO MS Statutory Framework comprising Establishing Convention, a Financial Protocol and a Protocol on Privileges and Immunities 20

21 EIB provided financing to the Sincrotrone Trieste Project Financed under the RSFF- Research Infrastructure Compartment Signed in 2010 EIB loan to finance upgrade and extension of the research facility EIB loan of up to EUR20m (i.e. 50% of the total project costs) Term: up to 20 years Security/guarantee: Sufficient member state comfort provided through contractual arrangements in the finance contract EIB loan to an Italian non-for-profit consortium Since transformation of ST into ERIC is planned in the medium term, a non-binding provision in the Finance Contract included to review the potential implications of an ERIC status for ST 21

22 EIB currently in discussions with Spain to finance their contributions to National Research Infrastructure Projects Objective: Financing a selection of operational expenditures and capital investments by the central government of 17 identified research Infrastructures, facilities and public research institutes Contract negotiations underway Borrower: Spain / Ministry of Economy and Competitiveness Amount: Up to EUR 500m Final Beneficiaries: Spanish partners of ESFRI projects (ELIXIR, BBMRI, ERINHA, PRACE) Spanish nucleus for a future ERIC (PLOCAN, to become EMSO ERIC) 22

23 What is the EFSI (European Fund for Strategic Investments)? Legal format: contractual arrangement EC & EIB - no separate legal entity Partial EU guarantee in favour of EIB All operations are EIB Group operations on EIB group balance 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) 23

24 InnovFin Product Overview SMEs and small Mid-Caps < 500 Employees Mid-Caps < 3,000 Employees Large Caps Typically > 3,000 Employees Public & Private sector promoters Intermediated SME/Mid-Cap Financing Intermediated and/or direct Corporate lending Direct Corporate Lending Financial Advisory 24

25 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 No automatic financing by EC or the EIB for these projects 25