EU Access to Finance Day Paris, 23 May 2014 European Investment - - PowerPoint PPT Presentation

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EU Access to Finance Day Paris, 23 May 2014 European Investment - - PowerPoint PPT Presentation

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EU Access to Finance Day Paris, 23 May 2014 European Investment Bank Group 06/06/2014 European Investment Bank Group 1 EIB activities for SMEs: Past achievements and future products Structure of presentation 0. Overview of EIB Group

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EU Access to Finance Day Paris, 23 May 2014 European Investment Bank Group

06/06/2014 European Investment Bank Group 1

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EIB activities for SMEs: Past achievements and future products

Structure of presentation

  • 0. Overview of EIB Group activities
  • 1. EIB products for SMEs – Key priority for EIB
  • 2. EIB Group deliveries to SMEs in France
  • 3. New initiatives
  • 4. Looking forward and conclusions

06/06/2014 European Investment Bank Group

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06/06/2014 European Investment Bank Group 3

Providing finance and expertise for sound and sustainable investment projects Leading developer of risk financing for SMEs

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Growth and jobs: four key priorities

06/06/2014 European Investment Bank Group 4

We work to promote sustainable growth and job creation in Europe and beyond

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06/06/2014 European Investment Bank Group 5

We help catalyse investment

LENDING BLENDING ADVISING

Loans But also: Guarantees (trade financing) Equity participation Combining EIB finance with EU budget (Project Bond Initiative) Higher risk projects for innovation (RSFF) Prepare & implement projects (JASPERS) Support for public / private partnerships (EPEC) Attracting FUNDING for long‐term growth

Different tools for different targets

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EIF at a Glance

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  • EU

EU specialised specialised institution nstitution for for SMEs MEs risk risk financing financing

  • Debt -

Debt - Structuring and Guaranteeing portfolios of SME loans/leases and microcredit

  • Equity

Equity - Venture Capital and Mezzanine (fund of funds)

  • Founded in 1994 & started

providing VC to businesses in 1997

  • Mul

Multilat ilater eral al De Developme velopment Bank Bank (MDB) (MDB) status status

  • Basel

Basel II 0% risk isk weighting eighting

  • Aaa/AAA/AAA

Aaa/AAA/AAA ratings tings (Moody’s/S&P/Fitch)

  • Geographic Focus:

Geographic Focus: EU 28, EFTA, Candidate Countries

  • Di

Distrib ribution t tion through ugh Banks and Funds Banks and Funds (Full delegation)

  • Shareholding

holding Structur ucture:

  • EIB:

EIB: 62.2%, 62.2%, EIB shareholders: 28 EU Member States

  • EC:

EC: 30% 30%

  • Eur

European

  • pean Financial

inancial Institutions: Institutions: 7.8 .8 %

06/06/2014 European Investment Bank Group

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EIF at a Glance

7 06/06/2014 European Investment Bank Group

European Investment Bank

  • Risk Capital Resources

(RCR) EUR 7bn

  • EREM Mandate: up to

EUR 4bn over the next 7 years

European Commission

  • 2007-2013

Competitiveness and Innovation Framework

  • Progr. (CIP) EUR 1bn

allocated to equity and guarantees

  • Risk-Sharing Instrument

(RSI) EUR 270m

  • Progress Microfinance

EUR 205m

National & Regional Funds

  • 13 European and regional

Funds-of-Funds including the Baltics, Germany, Portugal, Spain,Turkey, UK

  • 14 Holding Funds

supported by structural funds EUR 1.2bn

“ We manage resources from different stakeholders”

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EIB Group activities for SMEs: Past achievements and future products

  • 0. Overview of EIB Group activities
  • 1. EIB products for SMEs – Key priority for EIB
  • 2. EIB Group Deliveries to SMEs in France
  • 3. New initiatives
  • 4. Looking forward and conclusions

06/06/2014 European Investment Bank Group

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indirect indirect

Microenterprises SMEs Mid-caps Senior Loans / Guarantees Equity Hybrid / Mezzanine

EIF Guarantees and Securitisation

EIB Intermediated Loans

EIB Mid-cap Initiative loans &

gtees, RSFF

EIF RCR Mezzanine for Growth EIF Venture and Growth Capital Funds of Funds, Tech Transfer, Business Angels

EIB Growth Finance Initiative

EIF Microfinance

indirect/direct

Overview EIB Group SMEs/Mid-caps Products

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EIF Products

EIB Products

05/02/2014

06/06/2014 European Investment Bank Group

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EUR 7.5m EUR 25m EUR 300m EUR 25K Transaction Size Funding

Pre-seed Seed Funding Start-up / Mezzanine/Growth Commercialization / Industrialization Growth / Stability

Phases 1st Valley of Death 2nd Valley of Death

Intermediated SME/Mid-Cap Financing Intermediated SME/Mid-Cap Financing Direct Corporate Lending Direct Corporate Lending

EIB Group Products Range

SMEs and small Mid-Caps < 500 Employees SMEs and small Mid-Caps < 500 Employees Large Caps Typically > 3,000 Employees Large Caps Typically > 3,000 Employees Intermediated and/or direct Corporate lending Intermediated and/or direct Corporate lending Mid-Caps < 3,000 Employees Mid-Caps < 3,000 Employees 06/06/2014 European Investment Bank Group 10

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  • Main funding product of the EIB aiming at improving conditions and enhancing access to

finance for SMEs

  • Standardized product reaching a very large and diversified number of SMEs via Financial

Intermediaries

  • 3 Pillars:

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EIB Group Intermediated Lending: Loan for SMEs and Mid-Caps

Transparency

  • Final beneficiaries

are informed of EIB involvement Transfer of Financial Advantage (ToFA)

  • Financial

intermediaries benefit from financial value added and transfer an agreed share to the final beneficiaries Complementarity

  • EIB leverage effect
  • min. 2 times

05/02/2014

06/06/2014 European Investment Bank Group

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  • Growth Finance Initiative (GFI) = Direct financing (loans, quasi‐equity and mezzanine) for amounts

between 7.5m – 25m to innovative MidCaps

  • Mid‐cap Initiative (MCI) = Senior risk sharing with financial intermediaries for innovative MidCaps
  • Risk Sharing Finance Facility (RSFF)
  • Other financing facilities of EIB and EIF where appropriate with the European Commission:

Guarantees and counter‐guarantees (via financial intermediaries), Risk‐Sharing Finance Facility for SMEs and small MidCaps (RSI)

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EIB Direct Lending and Risk Sharing Instruments to the benefit of innovative MidCaps

05/02/2014

06/06/2014 European Investment Bank Group

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EIB activities for SMEs: Past achievements and future products

Structure of presentation

  • 0. Overview of EIB Group activities
  • 1. EIB products for SMEs – Key priority for EIB
  • 2. EIB Group Deliveries to SMEs in France
  • 3. New initiatives
  • 4. Looking forward and conclusions

06/06/2014 European Investment Bank Group

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EIB Group in France

05/02/2014

06/06/2014 European Investment Bank Group

18,5 3,4 5 10 15 20 25 Signed amounts EUR bn

EIB Group Access to Finance/SMEs

EIF EIB

  • Total EIB Group for Access to finance/SMEs amounted to EUR 21.9bn in 2013
  • In France, total activity of the EIB Group amounted to EUR 8.36bn (+93%)
  • f which EUR 1.34bn intermediated lending for SMEs (+73%)

4 600 770 8 360 1 334 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 Total SMEs/Midcaps EUR Millions

EIB Group Activities in France

2012 2013

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Financer les PME et les ETI avec Bpifrance

06/06/2014 European Investment Bank Group 15

Partenariat signé en juin 2013

Premières concrétisations: septembre 2013

  • Accord de refinancement: 750 millions €
  • Garantie FEI/RSI: 200 millions €

Objet: financement conjoint des TPE/PME, ETI français et entreprises innovantes; renforcer l’additionnalité des produits des deux institutions; point de contact unique pour le bénéficiaire auprès de Bpifrance

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EIB activities for SMEs: Past achievements and future products

  • 0. Overview of EIB Group activities
  • 1. EIB products for SMEs – Key priority for EIB
  • 2. EIB Group Deliveries to SMEs in France
  • 3. New initiatives
  • 4. Looking forward and conclusions

06/06/2014 European Investment Bank Group

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Investing for Youth – new initiatives in 2013

06/06/2014 European Investment Bank Group 17

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Possible EU-EIB Group Financial Instruments

Horizon 2020

Equity Facility for R&I SME and Small Mid Caps Guarantee Facility for RI (RSI successor) [EUR 1.06bn] for guarantees to SMEs/small mid caps. [EUR 0,45bn] for equity

Instruments under Structural and Cohesion Funds EU level instrument

(contribution of Member State (MS) funds from Operational Programmes to centrally managed EU programs)

Off-the shelf instruments Tailor-made instruments

Significantly higher amounts than currently, but to be decided by each MS

Competitiveness & SME (COSME)

[EUR 1.4bn] (current prices): Equity Facility for Growth (GIF successor) [EUR 690m] Loan Guarantee Facility [EUR 746m] (CIPsuccessor)

Social Change & Innovation

Progress Microfinance II Social enterprise investing [EUR 192m]

Erasmus for all

Student Loan Guarantee Facility [EUR 606m]

Structural/Cohesion Funds Central EU instruments

Source: EC, adapted

Jobs, Growth and Social Cohesion Creative Europe

Cultural and Creative Sector Guarantee Facility [EUR 120m]

Research, Development, Innovation Joint instrument New SME Initiative

Pooling of resources from European Structural and Investment Funds (ESIF), COSME and Horizon 2020, EIB/EIF and national promotional banks Guarantees of new loans to SMEs, securitization of existing SME loans [EUR 8.5bn] from ESIF [EUR 0,18bn] from H2020 [EUR 0,18bn] from COSME

06/06/2014 European Investment Bank Group 18

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EIB activities for SMEs: Past achievements and future products

  • 0. Overview of EIB Group activities
  • 1. EIB products for SMEs – Key priority for EIB
  • 2. EIB Group Deliveries to SMEs in France
  • 3. New initiatives
  • 4. Looking forward and conclusions

06/06/2014 European Investment Bank Group

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06/06/2014 European Investment Bank Group 20

  • Ensure continued availability of financing for SMEs through banking partners
  • Maintain and improve impact of EIB finance on SME final beneficiaries ‐ transfer of financial

advantage, tenor of sub‐lending

  • Continued development of risk‐sharing activities for innovative SMEs and wider ABS

initiative for growth funding

  • Respond to evolving EU policy priorities: youth employment, trade finance, etc.
  • 2014 EIB lending to SMEs in the range of EUR 17.5 – 18.5 bn. Maintaining similar level of

lending in 2015 and slightly lower in 2016

  • Continue strengthening cooperation with the European Commission, Member States,

national and multilateral development financing institutions, and also SME and banking associations

Looking forward… Enhancing EIB Group support for SMEs

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European Investment Bank Group 21

EIB Group Contact Details

Elodie de Récy Deputy Head of Corporate and Banking Western Europe Phone: (+33) 1 55 04 74 58 email: derecy@eib.org Vincent van Steensel Head of Risk Sharing Instruments (RSI) Phone: (+352) 43 79 81351 email: v.vansteensel@eif.org 06/06/2014