and Circular Economy Driving Towards Circularity, Bratislava, - - PowerPoint PPT Presentation

European Investment Bank Group 1

The 5W1H of financing Innovation and Circular Economy

Driving Towards Circularity, Bratislava, 07.11.2017

Darragh Mac Neill Senior Industry Advisor, EIB Projects Directorate

Who are we?

European Investment Bank Group 2

World’s Largest multilateral lender and borrower

• Natural financing partner for the EU institutions since 1958
• Around 90% of lending is within the EU
• Shareholders: 28 EU Member States

Financing sound investments from basic research to commercial scale plants.

Lending priorities

SMEs* Infrastructure Environment Innovation

EUR

16.9bn

EUR

19.7bn

EUR

13.5bn

EUR

33.6bn

* Small and Medium Enterprises

How does the EIB support clients?

• Typically larger SMEs, Mid-Caps and Corporates
• Direct Senior and Subordinated Loans
• Tailored products for innovative projects involving

higher risk.

Direct Financing

• Via banks, investment platforms and funds
• Loans and guarantees

Intermediated Financing*

3

* Out of scope for today’s discussion

• Early project assessment and identification
• Supervise preparation of project deliverables
• Policy and implementation support

Advisory Services*

• ‘Innovative’ SMEs and Mid-Caps up to 3,000

FTEs

• Includes changes in business model to

Circular Economy

• Amounts typically between EUR 7.5m-25m

InnovFin / EFSI* for Mid-Caps

• ‘Eligible Project’ review
• Amounts typically over EUR 25m but can be

several hundreds

EFSI / Regular EIB loan

What types of direct financing are available?

EIB finances max. 50% of “sound” projects, also having elevated risk for InnovFin / EFSI.

European Investment Bank Group 4

* European Fund for Strategic Investments

When are project investment considered sound?

European Investment Bank Group 5

Eligible projects are appraised for societal, ecological and economical impact.

• 1. Who and what: Management team and core activities
• 2. Profitability levels: Stable cash flows, reliable customer portfolio
• 3. Growth potential: Market dynamics, concept scalability/ replicability
• 4. Differentiation: Why your product/ service and not competing solutions
• 5. Pricing models: Your concept’s value proposition and price points
• 6. Supply chain: Who are your partners and collaboration structures
• 7. Working capital needs and operating costs
• 8. Technical risks and management of Intellectual Property
• 9. Environmental impact and regulatory framework

10.Sources of funds and debt exposure

Scope of due diligence process

Why clients work with EIB on CE projects?

European Investment Bank Group 6

Longer tenure, diversification of funds and positive reputational aspects.

Project Candidates System ‘Upcycling’ Tyre ‘Upcycling’ Context Large scale industrial vehicle ‘upcycling’ installation. ‘Upcycling’ of carbon black, oil and gas from waste tyres. Key ecological benefits

• 43% parts recuperated
• 48% recycled
• 80% reduction in energy,

water and chemical resources vs. original manufactured parts

• Net energy positive producing
• ca. 2MW and 1 ton of oil per ton

carbon black

• ‘Negative’ CO2 footprint
• 80% reduction in air pollution
• vs. legacy furnace process

Scale Upcycled per year

• 30k engines
• 20k gearboxes
• 16k fuel injectors

Upcycled per year (per plant)

• 45k ton ELT*
• ca. 12 kton oil, 9 kton gas, 9

kton steel recovered

• 15k ton carbon black

* End of Life Tyres

European Investment Bank Group

Where to get EIB support for CE projects?

08/11/2017

7

www.eib.org

Darragh Mac Neill

Innovative Industries Division Projects Directorate Tel.: (+352) 4379 82773 email: d.macneill@eib.org

Nathalie Binet

Loan Officer Operations Directorate Tel.: (+352) 4379 86238 email: n.binet@eib.org

http://www.eib.org/products/helpingyouinnovate/tool/index.html

EIB contacts

Radoslaw Ossowski-Barbetti

Head of EIB Group office Slovakia Tel.: (+352) 4379 89112 email: r.ossowski@eib.org