establish the European Fund for Strategic Investments (EFSI) Maria - - PowerPoint PPT Presentation

Investment Plan for Europe Partnership of EC and EIB to establish the European Fund for Strategic Investments (EFSI)

Maria Shaw-Barragan Head of Strategy Division

Commission for Territorial Cohesion Policy and EU Budget Committee of the Regions Brussels, 2nd March 2015

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Investment Plan for Europe: context

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The Investment Plan for Europe consists of three strands:

• 1. Regulatory and structural reforms at EU and national levels to

create a friendlier investment environment

• 2. Enhanced EIB-EC-MS cooperation on project identification

(the task force) and stepped-up technical assistance

• 3. The EFSI, to allow the 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

Every piece of the puzzle counts

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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 restore confidence and encourage investors

to invest and build expertise in Europe

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No automatic financing by EC or the EIB for these projects

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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, private sector entities)

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European Fund for Strategic Investments (EFSI)

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Delivering on the 2013 capital increase to EIB

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180 billion mobilised by March 2015, ahead of December 2015 target

Mobilising new investment

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EFSI EIB 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.

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EIB in charge of verifying that eligibility criteria are properly applied

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

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EIB normal “know your customer” and compliance requirements

Eligible operations

 Commercially sound  Economically and technically viable  Added value (additionality)  Investments boosting employment and growth  Bank intermediation is possible

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Provide risk-bearing capacity to foster the implementation of additional projects and to support the development of SMEs and MidCaps

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

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• If you know the EIB, get in touch with your normal contact
• 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 InfoDesk

SME Window

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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

Next steps

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EU law- making process

Operational preparation and follow-up Agreement

• n 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 2015

• Jan. 2015

June 2015 Mid 2018

Q & A … Thank you!

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