European Investment Bank Promoting European objectives 21/08/2012 - PowerPoint PPT Presentation

European Investment Bank Promoting European objectives 21/08/2012 1

The EIB Group The European Investment Bank (EIB) The European Investment Fund (EIF) 21/08/2012 2

The European Investment Bank (EIB) Long-term finance promoting European objectives European Union’s long -term lending bank set up in 1958 by the Treaty of Rome. Shareholders: 27 EU Member States Governance Board of Governors – EU Finance Ministers Board of Directors - Member States & European Commission Management Committee –EIB’s executive body Audit Committee – independent, non-resident 21/08/2012 3

The European Investment Bank (EIB) European priority objectives Within the Union: Convergence Small and medium-sized enterprises (SMEs) and mid-cap enterprises (midcaps) Environmental sustainability Knowledge Economy Trans-European Networks (TENs) Sustainable, competitive and secure energy 21/08/2012 4

The European Investment Bank (EIB) European priority objectives Outside the Union: Private sector development Infrastructure development Security of energy supply Environmental sustainability Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI) 21/08/2012 5

The European Investment Bank (EIB) Under EU Mandates: Pre-Accession Candidate Countries: Croatia, Iceland, Former Yugoslav Republic of Macedonia, Montenegro and Turkey Potential Candidate Countries – Western Balkans European Neighbourhood Mediterranean Partner Countries (FEMIP) Russia and Eastern Neighbours Development Africa, Caribbean and Pacific (ACP, PTOM) South Africa Asia and Latin America (ALA) 21/08/2012 6

2011 Key figures European Union: EUR 53.8bn Partner countries: EUR 7.1bn Total lending: EUR 60.9bn Borrowings: EUR 76.0bn Subscribed capital: EUR 232.4bn (at 01/04/2009) 21/08/2012 7

EIB Signatures 2011 (in EUR) 21/08/2012 8

Signatures and Disbursements from 2007 to 2011 Signatures Disbursements EUR bn 21/08/2012 9

EIB Signatures 1958-2011 21/08/2012 10

Value Added Value added of the Bank’s lending activities: Support for EU priority objectives Project quality and soundness Financial benefits of EIB funds Technical assistance Project assessment 21/08/2012 11

Breakdown of the EIB’s capital As at 1 April 2009 21/08/2012 12

The European Investment Fund (EIF) Venture capital & SME guarantees Established in 1994 Owned by: EIB European Commission Other European financial institutions Resources: Own funds – subscribed capital EU programmes Trust operations (EIB, German Government) 2011 figures (signatures): Venture capital funds: EUR 1 126m Guarantees and microfinance: EUR 1 528m Portfolio at end 2011: Venture capital - assets under management: EUR 5.9bn in over 373 funds Guarantees: EUR 4.4bn some 244 transactions 21/08/2012 13

OBJECTIVES European objectives within and outside the Union 21/08/2012 14

Convergence Lending for convergence regions, phasing-out/in regions Promoting competitiveness and employment and European cooperation Total loans of EUR 20.2bn in 2011 in all major economic sectors: Health and education infrastructure SMEs Transport and telecommunications infrastructure Industry and the services sector Urban infrastructure Total loans of EUR 111.9bn since 2007 21/08/2012 15

Small and medium-sized enterprises (SMEs) and mid-cap enterprises (midcaps) Intermediaries: regional and national banks EIF venture capital and SME guarantees EIB loans for SMEs of EUR 10.5bn in Europe in 2011: Industry Energy and transport Services, including tourism 21/08/2012 16

Climate Change Action The EIB’s climate action focuses on: low-carbon investments that mitigate greenhouse gas emissions climate-resilient projects that improve adaptation to climate change impacts. Loans of EUR 18.0bn in 2011 for: energy, transport, water, wastewater, solid waste, forestry, research, development and innovation (RDI). 21/08/2012 17

Knowledge Economy A competitive, innovative and knowledge-based European economy Job creation and sustainable growth Total loans of EUR 10.4bn in EU in 2011 for: Research, development Education and training Innovation and ICT infrastructure Total loans of EUR 65.6bn 2007-2011 21/08/2012 18

Trans-European Networks (TENs) Large transport and energy infrastructure networks Transport supporting development and integration Security and diversification of internal energy supply 2011 2007-2011 TENs and major axes 11 176 57 740 TEN transport 8 883 44 444 TEN Energy 1 357 9 004 Total TEN (EU) 10 239 53 447 Major transport axes in Neighbourhood Countries 937 3 340 Energy axes in Neighbourhood Countries _ 953 Total outside the EU 937 4 293 21/08/2012 19

Competitive and Secure Energy Competitive and Secure Energy Diversification and security of internal supply (including TEN-E) External energy security and economic development EU and Pre-accession countries: total loans of EUR 11.5bn in 2011 Other partner countries: total loans of EUR 1.3bn in 2011 21/08/2012 20

EIB Activities Outside the Union Supporting EU Development and Cooperation Policies in Partner Countries EIB external mandates: Pre-accession countries, European neighbourhood, Development Loans of EUR 7.1bn in 2011 21/08/2012 21

BORROWING ACTIVITY A leading sovereign-class international borrower 21/08/2012 22

Funding strength adds value for customers Loan portfolio is mainly funded through bond issues on international capital markets Passing on to loan customers of funding advantage, benefiting from financial strength and stability and strong capital market positioning Non-profit maximising Large and frequent international bond issuer. EUR 76.0bn issued in 2011 21/08/2012 23

Strategy and development impact Objective: optimisation of cost on sustainable basis, while assuring volume and requisite strategic approach Strategic components: Liquid benchmark issues across key maturities in EUR, GBP and USD: EUR: Key source of duration GBP: leading Gilt alternative USD: A leading non-U.S. issuer Tailor-made plain vanilla and structured issuance in 37 currencies (including issues in synthetic format) since 2002. Flexibility and innovation for the investor, diversification and cost efficiency for EIB Development: notably in capital markets of new/future EU Member States and selected EU partner countries, in particular in Africa. Local currency issuance may also be linked to local currency lending. 21/08/2012 24

EIB Borrowing activity in 2011 Total borrowing in 2011: EUR 76.0bn 294 bond issues across 19 currencies (including 6 in synthetic format) Largest supranational borrower 21/08/2012 25

For more information http://www.bei.org/ info@eib.org Tel: (+352) 437922000 21/08/2012 26