Providing finance and expertise for sound and sustainable investment projects Brussels Round Table 12 November 2015 – EU Industry and Monetary Policy G. Bichisao 2 European Investment Bank
The EU Bank – a valuable franchise • Providing finance and expertise for sound and sustainable investment projects. • Natural partner for the EU institutions since 1958 • Largest multilateral lender and borrower with a total headcount of only 2 277 people at end-2014. • As the ‘EU Bank’ -> focused on viable projects within all Member States of the EU. Catalyze private investment in the EU. • Supporting EU policy outside the EU • Key products: Higher Risk Capital Risk Sharing Advisory & Enhancement Loans Guarantees /Credit Mandates Services Enhancement managed by EIF 3 European Investment Bank
Lending priorities 4 European Investment Bank
EIB Group lending in 2014 5 European Investment Bank
2014 Borrowing activity EUR 61.6bn: distribution of EIB bond issues by region 6 European Investment Bank
Risk considerations • EIB continues to receive the highest credit rating afforded by the rating agencies - highly valuable feature of EIB’s business model. • The Bank’s commitment to maintaining its high credit standing remains uncompromising. • New lending opportunities constantly reviewed so as to optimise the EIB’s volume -risk trade-off and value-added to the markets. 7 European Investment Bank
EIB Group track record: almost EUR 500bn lent since 2008 8 European Investment Bank
Delivering on the capital increase 180 billion mobilised by March 2015, ahead of December 2015 target 9 European Investment Bank
Market Challenges The market conditions for implementation of the Bank’s lending programme continue to present significant challenges including: (1) scarce project generation capacity in the public and private sectors and a low level of borrowing capacity at sovereign/sub-sovereign level in some countries; (2)identification of eligible investment projects ; and (3)while market liquidity is available risk bearing capacity of the financial sector remains often the binding constraint to be overcome Bank continues to proactively respond to the above challenges … 10 European Investment Bank
EIB Group response 11 European Investment Bank
European Fund for Strategic Investments 12 European Investment Bank
Mobilising new investment EIB EFSI Group 13 European Investment Bank
Looking forward From crisis recovery to relaunching competitiveness through investment and innovation. European Fund for Strategic Investments (EFSI) will mobilise EUR 315 billion of total investment for Europe. Unprecedented challenges ahead which require a quantum change in the Bank’s business profile 14 European Investment Bank
Q&A 15 European Investment Bank
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