EIB Group and Financial Instruments: examples and lessons learnt for post 2020 - Milan, 29th March 2019 - Finanziamenti diretti UE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
EIB Group and Financial Instruments:
examples and lessons learnt for post 2020
Milan, 29th March 2019
1
EIB products and activities
LENDING BLENDING ADVISING
• LOANS • COMBINING EU and EIB RESOURCES • TECHNICAL ASSISTANCE for
(CEF, EFSI, INNOFIN) PROJECT PREPARATION (JASPERS,
• GUARANTEES (trade finance) ELENA)
• COMBINING/USE of THIRD PARTIES
• EQUITY and QUASI-EQUITY FUNDS (PHILANTROPISTS, EU • SUPPORT for PUBLIC/PRIVATE
DEDICATED MANDATES OUTSIDE PARTNERSHIP (EPEC)
EUROPE)
• ADVISORY HUB (EFSI)
• COMBINING/USE of ESIF THROUGH:
• DFI ADVISORY:
DECENTRALIZED FINANCIAL
INSTRUMENTS Fi-compass and bilateral FI
advisory services
European Investment Bank Page 2
The European Funds for Strategic Investments (EFSI)
European Investment Bank Page 3
European Fund for Strategic Investments (EFSI)
EU Guarantee € 26bn EIB € 7.5bn
EFSI - European Fund for Strategic Investments € 33.5bn
Infrastructure and Innovation Window SME Window
Deployed by EIB Deployed by EIF
Financing: € ~100bn
Final investments: € 500bn
European Investment Bank Page 4
European Fund for Strategic Investments (EFSI)
(as of 31.12.2018)
Approved EFSI financing Supporting total
operations approved investment of
1 031 € 70.4bn € 375.5bn
European Investment Bank Page 5
Other forms of support through EU resources:
Decentralized Financial Instruments (DFIs)
European Investment Bank Page 6
DFIs: an innovative way of using ESIF in EU regions
Decentralised Financial Instruments (DFI): instruments implemented through the use of European Structural and
Investment Funds (ESI Funds, or ESIF) whose management is shared between the EU and the MS.
Why DFI and EIB: article 309 TFEU requires EIB to facilitate the financing of investment programs from ESIF and other
EU Financial Instruments.
DFIs are mandates carried out off-balance sheet by the Bank as the level of risk, complexity, granularity and location of
projects does not generally allow for investments by the EIB -Impact Finance Mandates-.
Designed to address well identified market failure and suboptimal investment conditions. Projects must respond to
both policy objectives and financial sustainability.
The EIB has a group of specialized professionals (nearly 50 people) to support MS via dedicated geographical teams and
centralized coordination (gateway with the EC) and auditing. Organization under review to face future challenges
(particularly efficiency and costs).
Sectorial coverage from sustainable urban developments, to energy efficiency, research and innovation and now
moving into human capital and skills.
Sectors
Sustainable Low carbon Research, Energy efficiency Impact investment
urban economy development & (pre-bankable
development innovation projects/borrowers)
European Investment Bank Page 7
EIB and DFIs: up to EUR 2.6bn with nearly 3000 projects in EU
Since 2010 EIB has invested/managed more than EUR 2.6bn (EUR 2.1bn currently) through DFI, supporting
nearly 3,000 projects with a leverage effect of 2.7 over the years over the funds contributed by the various
managing authorities
DFIs under current management
JESSICA DFI TOTAL Terminated
EURbn 2.6 2,974 7 2.7X* Number of
funds 10 8 18 9
Amount in
Total amount Projects Member Multiplier Million EUR
991 1,108 2,099 600
managed or financed States effect
invested by EIB
Infrastructure
Street lighting
Local transport
Research and innovation
Requalificaiton of Urban areas
Local transport
European Investment Bank Page 8
EUR 7bn of local investments mobilized
DFIs managed by EIB mobilized nearly EUR 7bn on investments from 2010 in a time where commercial lenders
reduced significantly their volumes and risk appetite.
Loans to NFC declined in the period 2012-2015 by 8.1% per year in Spain and by 3.0% per year in Italy.
The second leg of the double deep recession caused NPLs to increase massively: in 2013 they were at 16.5% of
gross loans in Italy 10.62% in Portugal and 9.38% in Spain.
Unemployment rose dramatically between 2007 and 2012, from 8.8% to 25.5% in Spain and from 8.7% to 15.1%
in Portugal.
Loans- Euro area (Mill EUR)
4,800,000
4,700,000
4,600,000
4,500,000
4,400,000
4,300,000
4,200,000
4,100,000
4,000,000
2014Aug
2011Feb
2011Sep
2012Apr
2014Jan
2018Feb
2018Sep
2012Nov
2010Jul
2015Mar
2016May
2013Jun
2017Jul
2015Oct
2016Dec
*Source ECB: https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=117.BSI.M.U2.Y.U.A20.A.1.U2.2240.Z01.E
European Investment Bank Page 9
EIB - DFIs How we do it European Investment Bank Page 10
EIB’s key role in DFIs
Management of financial instruments / Mandate
Acting as Investment Manager to manage ESIFs made available in the form of
financial instruments (e.g. via a Fund of Fund structure) and to pilot innovative
instruments for EU policy needs
Technical assistance and financial advisory
Providing capacity-building activities and financial advisory services to MAs in
order to support implementation and acceleration of investment projects
Co-financing
Co-financing of financial instrument operations using EIB own resources for higher
risk projects. It enables EIB to engage in higher added value and development
activities
European Investment Bank Page 11Typical lifecycle of DFIs
Evaluation of the Development
Contact with implementation and approval of
the MA possibilities via ex investment
ante analysis strategy
Investment
manager
Publication of
Signature of the call for expression
Setup of the
Funding of interest for
investment board
Agreement financial
intermediaries
Assistance
& advisory
Signature of Disbursement
Selection of Operational process following
financial Agreement with financial
intermediaries financial intermediary
Co-financing intermediary request
Monitoring,
Termination and
reporting and
re-use of resources
audits
European Investment Bank Page 12Main lessons learnt of DFI operations
• EIBG helps delivering greater impact on cohesion policies via targeted DFI mandates
• Operations are fully aligned with EU goals
• Increase of leverage and crowding-in effect
• Investments aim to address the market failures, suboptimal investment situations and
investment needs.
• DFIs are managed to allow for financial and development sustainability. EIB adheres to the
highest project due diligence standards.
• Synergies with next MFF (new opportunities)
• Regulatory framework
• Design of MS compartment of the future InvestEU
• DFIs are capital neutral in a capital-constrained environment provide additional resources to
complement EIB products penetration
• Preparation and selection of the right intermediary are key to deliver on the ground
• MA must support the implementation throughout the process
• Fair remuneration is needed to ensure that good performances are achieved
European Investment Bank Page 1314
ESIF – EFSI combination
European Investment Bank Page 14Combination ESIF – EFSI
What are the main differences between ESIF and EFSI?
The risk profile, criteria and delivery mode are different.
The ESI Funds can finance projects via grants and financial instruments
ESIF and are part of the programmes implemented by Managing authorities
in the Member States.
The EFSI provides risk financing instruments (no grants) via the
EFSI European Investment Bank with no geographical or sectorial quota but
based on market demand for investment financing.
European Investment Bank Page 15How ESIF and EFSI can be combined?
In parallel, at project level
An eligible project receives funding from the
ESIF programme (in the form of a grant or
through a
financial instrument), from EFSI and possibly
also from other investors attracted by ESI
Funds and EFSI.
At Investment Platform level
The investment platform would invest EFSI
and distinct ESIF programme contributions in
projects.
At financial instrument/project level
The managing authority sets up a financial
instrument in which the investment platform
set up with EFSI support participates as an
investor. Alternatively, an IP can contribute
resources directly at project level, on a deal by
deal basis.
European Investment Bank Page 1617
Annex I: examples of EFSI projects in Italy
European Investment Bank Page 171
8
EFSI in Italia – alcuni esempi
Ospedale di Treviso
Finanziamento BEI per 68 milioni di Euro (di cui 29 milioni con garanzia EFSI) per la
progettazione, la costruzione e la messa in funzione della nuova Cittadella della Salute presso
l'ospedale di Treviso.
Un secondo prestito di 39 milioni di Euro va a favore della AULSS,
per finanziare parte delle sovvenzioni pubbliche destinate al
progetto. Per la prima volta i vantaggi finanziari derivanti dal basso
costo dei finanziamenti della BEI rispetto ad altri finanziatori
andranno a favore di iniziative di impatto sociale.
Italy-France Interconnector
Finanziamento BEI di 168 milioni di Euro per la parte privata
della nuova interconnessione elettrica in corrente continua a 320
kV che collegherà l’Italia e la Francia.
Il finanziamento è suddiviso in due tranche: prestito sindacato di 100 milioni pari passu con altri
finanziatori (quota BEI su un totale di EUR 440m ca.); garanzia di prima perdita di 68 milioni. Grazie
alla garanzia EFSI, la BEI può prendere più rischio, consentendo la bancabilità dell’iniziativa ed un
miglioramento del rating del progetto. Premio PFI awards European energy deal 2017. La BEI
partecipa inoltre al finanziamento della parte pubblica del progetto: finanziamento BEI a Terna da
130 milioni di Euro (senza garanzia EFSI).
European Investment Bank Page 181
9
EFSI in Italia – alcuni esempi
Raffineria di Milazzo
Finanziamento BEI per 110 milioni di Euro a cofinanziamento di un piano di investimenti di 236
milioni di Euro negli impianti della raffineria di Milazzo.
Il piano di investimenti mira soprattutto a migliorare gli standard
di efficienza energetica, per consentire risparmi energetici e
riduzioni delle emissioni di CO2.
Acquedotto Pugliese
Finanziamento BEI per 200 milioni di Euro a cofinanziamento del
Piano di investimenti 2017-2022 del più grande operatore di
servizi idrici integrati nel Sud Italia. Il Piano mira a ridurre le
perdite, mantenere l’efficienza della rete, migliorare la qualità
delle acque, aumentare la dotazione idrica pro-capite,
incrementare la copertura del servizio idrico e fognario.
European Investment Bank Page 1920
Annex II: DFI products and examples
European Investment Bank Page 20DFI associated mandate and lending products
EIB risk / resources
Non EIB risk / resources
First loss Senior loan Multiple
Contingent piece (“FLP”) to debt / Mezzanine beneficiary Receivable Loan to Non-recourse
Products loan tranched intermediated based Public loan to Public
capped mezzanine
guarantee fund guarantee financing Authority Authority
loan
FI risk
Senior
Senior
ESI Funds risk
ESI Recourse Recourse
Recourse
Portfolio to end
FI risk
Funds Mezzanine to existing to public
risk authority beneficia-
risk portfolio
ries
ESI Funds
Junior
risk
FLP
Leverage Up to 3x c.5x Case by case Case by case 2x 2x 1-2x 1-2x
Final Loans
Venture Debt Mezzanine Loans Loans Loans Loans
Benefi- Product Guarantee
finance Equity Equity Equity Equity
ciary Equity guarantee
product Quasi Equity
European Investment Bank Page 21Spain: Restoration of old railway station – Seville
• DFI: JESSICA Holding Fund Andalucia.
• Sector: Urban Development.
• DFI contribution: Total Investment of EUR 9,6mmout of which the DFI contributes EUR 6,6 in
equity and quasi-equity instruments.
• Beneficiary: Sportbox San Bernardo ( Special Purpose Vehicle).
• Promoter: Urban Planning Department of Seville City Council.
• Purpose: Restoration of an old railway station owned by Seville City Council, including the
rehabilitation of an old public food market, the construction and management of a sport
center and an underground car park, as well as the rehabilitation of the station access.
• Presented as an example of good practice in regional policy and use of European Funds1.
• Expected impact:
• Recovery of an abandoned public interest infrastructure (building is included in the
Special Plan “Sector 20” in Seville) giving it a social and services use (sports center and
food market).
• Rehabilitation of a traditional Food Market (which was installed in a provisional basis
from 1999).
• Rehabilitation and revitalization of the surrounding area (refurbishment of the square
station access)
European Investment Bank Page 22Greece: Construction of 24 schools - Attica
• DFI: JESSICA Holding Fund Greece
• Sector: Urban Infrastructure
• DFI contribution: long-term soft loan of EUR 36, with total
project costs of EUR 112m.
• Blending DFI resources with EIB direct lending
• Promoter: “Buildings Infrastructure SA” (the awarding authority) – the project was implemented by
two SPVs that were awarded the construction and maintenance of the 24 schools in the form of PPP.
• The project was launched in 2008 by “Buildings Infrastructure SA”, in cooperation with the General
Secretariat for PPPs – Ministry of Economy and Development. Preferred bidder was selected in 2010
and the project was suspended due to financial crisis .
• Expected impact:
• 6,000 children gain access to better education facilities;
• 83 new jobs
• Regenerated areas due to the construction of the schools.
European Investment Bank Page 23Italy: Roboze S.p.A - Puglia
• DFI: MIUR Fund of Funds
• Sector: RDI
• DFI contribution: equity investment of EUR 3M
• Promoter: Roboze S.p.A., a company founded in 2013 in Bari and deals with
additive manufacturing (3D printer production). The company has obtained
important national and international awards for its research and innovation
activities (The world's top 500 deep tech startups of BNP Paribas, Shortlist TCT
Award 2017, Enterprise Award X Innovation Andrea Pininfarina of Confindustria).
Roboze customers already include large industrial groups such as General Electric,
Airbus, Bosch and CNH Industrial. .
• Projects the ESIF support will allow Roboze to develop and complete its line of 3D
printers to be offered on the most promising and competitive international
markets, starting from the United States.
• Expected impact: RDI investment to enhance the 3D printing industry in Europe.
It is planed that Roboze will move from the current 18 to over 100 employees by
2022.
European Investment Bank Page 24Poland: Thermo-modernisation of residential buildings - Slupsk
• DFI: Fund of Funds Pomorskie
• Sector: Energy efficiency in housing
• DFI contribution: long-term loan of EUR 100k, with total project costs of EUR
130k
• Promoter: housing cooperative in Słupsk .
• Projects of this type are designed to reduce heat losses and greenhouse gas
emissions, eliminate individual sources of heat, modernise local heat sources,
introduce energy upgrades in heating and ventilation systems as well as to allow
for installation of energy monitoring and management systems.
• Expected impact: energy saving beyond 25%
• It is estimated that approx. 100 multi-apartment buildings will be modernised
and 1300 households will increase their energy efficiency in Pomorskie region
European Investment Bank Page 25France: Circular Economy – Nord Pas de Calais
• Financial Instrument: CAP 3RI S.A.S.
• Sector: energy and resource efficiency, renewable energy, circular economy.
• DFI contribution: quasi-equity contribution of EUR 2.0m.
• Final beneficiary: ASTRADEC is involved in the collection, management and recovery of
waste. The group has specialized in six business sectors: sanitation and industrial cleaning,
biomass recovery, garbage collection, sludge dewatering, recovery of common industrial
waste and metal processing.
• CAP 3RI has accompanied ASTRADEC to pursue its external growth strategy and continue
the development of its main site based in Arques. The ASTRADEC group is fully committed
to the theme of circular economy and the Third Industrial Revolution, in line with TO4 .
• Expected impact:
• Reduction of waste and emissions
• Tangible improvements in the reuse of industrial and non industrial waste
• Job creation
• Modernisation of an industrial site and increase of treatment capacity.
European Investment Bank Page 26You can also read
