LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? - FEB
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LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? 06.07.2021 – 15h30-16h45
LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? Verwelkoming Olivier Joris
• Introductie Pieter Timmermans, VBO FEB • Keynote Kris Peeters, EIB • Case Study Avrille Palha, EIB • Getuigenis / témoignage Jean-Philippe Michaux, Puratos • Q&A Olivier Joris, VBO FEB • Conclusie Kris Peeters, EIB
LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? Introductie Pieter Timmermans
LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? Keynote Kris Peeters
EIB financing solutions for Corporates
The European Investment Bank
The EU bank:
• Established in 1958 by the Treaty of Rome as the lending arm of the European Union
• EIB Group consists of the European Investment Bank (EIB) and the European Investment Fund (EIF)
• Governed and owned by the 27 EU Member States
• Around 90% of lending within the EU (~87% in 2020)
World’s largest International Financial Institution: Total EIB Group Capital
• Largest multilateral lender and capital markets borrower investments lending markets
• EU Climate Bank and a pillar of the European Green Deal supported volume in funding in
in 2020: 2020: 2020:
• Headquartered in Luxembourg (51 offices around the world)
EUR 270bn EUR 76.8bn EUR 70bn
• Around 3,500 staff
Solid credit fundamentals:
• AAA-rated by the three major rating agencies
• Favourable borrowing conditions passed on to clients
7
Our priorities
SMALL AND MEDIUM-SIZED
INNOVATION ENVIRONMENT INFRASTRUCTURE ENTEPRISES
€ 14.43 € 16.82 € 14.99 € 30.56
billion billion billion billion
8
The European Investment Bank in Belgium
• In 2020, the EIB Group provided a record EUR 1.5bn of financing commitments in
Belgium (0.3% of GDP)
• Total EIB Group outstanding exposure of EUR 32.4bn (6.8% of GDP).
• 13 EIB transactions in healthcare, transport, education, agribusiness, climate action,
SMEs and innovation – 8 EIF transactions
• In the private sector, EIB is highly active providing senior loans and growth finance to
Belgian private corporates.
• Top 3 sectors: Industry, Healthcare, SMEs
(via Belgian banks and financial
intermediaries)
9
Belgian Corporate Transactions
EUR 100m
EUR 100m EUR 100m EUR 125m EUR 50m EUR 400m
Project: Modernisation
Project: Financing textile Project: RDI programme Project: RDI in Poland Project: RDI programme Project: High speed
Programmes of Steel plants
Machinery and RDI for glass products For food ingredients telecommunications
(Covid 19) network.
June 2020 February 2019
December 2020 December 2020 December 2019 March 2018
EUR 350m EUR 90m EUR 150m EUR 75m EUR 50m EUR 35m
(Bel: EUR 84m) (BEL: EUR 21m)
Project: RDI in the field of Project: RDI in steel wire Project: RDI in the next Project: RDI for
Projet: R&D in steel Project: R&D in imagery neuroscience transformation generation of projectors 3D printing
manufacturing And data treatment
December 2016 December 2016 December 2015 March 2015 December 2011 December 2017
EUR 60m
Project: RDI for printers
and consumables.
December 2010
10Climate Bank Roadmap
Nov 2019: Key decision by the Board
• All EIB financing activities aligned with the goals and principles of the Paris Agreement by 2020.
Nov 2020: Board approves Climate Bank Roadmap
• Chapter 4 provides details of alignment framework for new projects
• Alignment of counterparties to follow in 2021
Objectives
• Financing dedicated to Climate Action & Environmental Sustainability to reach 50% of Bank
operations from 2025 and onwards
• Support EUR 1 trillion of investments in Climate Action & Environmental Sustainability during 2021-
2030
• Alignment of all its financing activities with the principles and goals of the Paris agreement (by the
end of 2020)
• Full document available online: EIB Group Climate Bank Roadmap 2021-2025
Summer 2021: Revision Transport Lending Policy
11What we can (and cannot) do
Lending Blending Advisory
Loans
Co-
Technical
financing
Guarantees
Mezzanine
Financial
Financial
instruments
Equity
What we do not do: Working capital, Re-financing, M&A
12Loan product offering
Direct Loans
(> EUR 20m)
Intermediated Loans
(< EUR 20m)
Banks
(PPP) Project finance with
direct project risk
Borrower
InnovFin
(in partnership with EC)
(> EUR 7.5m)
Venture Debt / Quasi-
Equity
(> EUR 7.5m; < EUR 50m)
Equity through
Funds / European
Investment Fund
13EIB financing corporates: Specifics
• The EIB finances corporates with investments that make a contribution to
climate change adaption; research development and innovation;
• The EIB generally finances up to 50% of the total investment costs. This long
term, supportive financing often encourages private and public sector actors to
make the matching investment;
• All the projects we finance must not only be bankable but also comply with
economic, technical, environmental and social standards;
• In its commitment to become the EU Climate Bank, the EIB is also focusing its
financing on low carbon investments or activities that are climate-neutral but
present other important social and sustainability benefits
15Case Study 1: Vandewiele NV
• Family owned group • The Project: RDI investments in textile
machinery and advanced manufacturing
• Machines for the textile industry technologies.
• Focus on improved productivity and energy
• C. 4,500 employees efficiency.
• Focus on technology • Automation of production.
• Turnover of > € 750m • First loan signed in 2015
• Financially strong, innovative ➢ Senior loan of € 100m - 10
• Active in Europe, USA, Middle East and years
Far East • Second loan signed 2020
➢ Senior loan of €100 m - 10
years
16Vandewiele NV - Financing RDI and digitisation
➢ EUR 100m loan financing digitally-integrated textile
manufacturing, furthering the automation of
internal production processes
➢ Project contributing to EIB’s (i) Innovation (100%)
and (ii) Climate Action Mitigation (7%) policy
objectives
Impact EIB added value
➢ The project safeguards ➢ Closing of market-gap: EIB’s
existing employment in R&D support to the project addresses
and indirectly VDW’s EU market failure linked to the lack
workforce of long-term capital to finance
➢ Supports digitalization of inherently risky private sector
traditional industry, protecting RDI.
future competitiveness. RDI
spill-overs.
➢ Leads to the creation of
superior and innovative
products, while lowering
environmental footprint
17EIB financing corporates: 2 Step Approach
Eligibility and Viability Assessment of the Project
• Check conformity with the respective EU priorities and policies as well as
project viability
• Check project viability by reviewing the technical and economic
soundness of the project
Bankability Assessment of the Counterpart
• Financial analysis to assess borrower’s creditworthiness and cash-flow
• Build on the project viability and technical analysis
• Determine suitable financing instrument given financial risk profile
18EIB: Defining an RDI Project
EIB Loan Eligible Costs
Company
• R&D
• Opex, such as R&D personnel
Eligible Costs 2017 2018 2019
costs, contract research,
RDI Salaries € 25m € 27m € 30m
consumables, overheads
RDI Capex € 35m € 40m € 45m
• Capex, such as facilities,
RDI Opex, etc. € 5m € 7m € 8m
equipment, acquisition of
Total Annual € 65m € 74m € 83m tangible & intangible assets, if
prerequisite
Total Project € 222m • Innovation
• Deployment of advanced
€ 111 m (50%) manufacturing technology;
Max EIB Loan
Credit Limit
the lowest of investments in productivity-
enhancing processes and
logistics (automation,
digitalization, advanced
measurement, advanced
materials)
19EIB: Project cycle
Contract
negotiatio
n
Step 1 Step 2 Step 3 Step 4
Proposal Appraisal Approval Signature
• Identification • Financial • EIB Management
of a project • Economic Committee
opportunity • Investment
• Social
Committee (EFSI)
• Environmental
• EIB Board of
• Technical assessment Directors
Step 7 Step 6 Step 5
Repayment Monitoring Disbursement
and reporting
• Typically, ca 4-6 months from kick-off to disbursement.
20EIB: Corporate Loans: Terms
• Long or Medium term loans, no revolving facilities
• Senior debt
• Maturities:
• 5-7y bullet for RDI investments
• Potentially 10y amortising for RD + capex investments
• Generally unsecured lending
• Key clauses and financial covenants in line with market standards
21Key financing advantages
• Funding diversification
Long-term financing partner complementing commercial banks / capital market facilities
/ venture capital and other funding sources.
• Attractive and flexible terms
Sizable “fungible” capital, longer tenors, flexible terms (fixed/floating, bullet/amortising,
multi-currency) and attractive (below market) rates passed on to clients reflecting the
public non-for-profit promotional nature of the EIB and its funding advantage.
• Fully complementary to existing bank / bonds facilities
EIB does not offer other banking services (no cross-selling) and tries to align to the
extent possible to existing debt facilities.
• Positive signaling effect – EIB Climate Bank
EIB’s in-house sector expertise and tangible commitment to EU’s social, environmental
and other public policy goals, offers clients proven quality stamp and positive signaling
effects towards stakeholders, especially in the fields of sustainability and climate action.
22Case Study 2 : EIB Loan to Puratos from a Client perspective
• Family owned group • The Project: Financing the RDI
programme in food ingredients
• Food processing company
focused in particular on the
• 9,300 employees, 1,200 R&D development of new nutritional
employees components.
• Focus on product improvement.
• Turnover of > € 1.4 bn
• Three EIB loans to date, totalling EUR
• Financially strong 135m.
• Active in 80 countries
23Thank you!
Pierre-Emmanuel Noël
European Investment Bank
Rond-Point Robert Schuman, 6
B-1040 Brussels
Tel: (+352) 437 986431
Mob: (+32) 47 02 41 789
p.noel@eib.org
Avrille Palha
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg
Tel: (+352) 437 984205
Mob: (+352) 691 286 363
a.palha@eib.org
24Disclaimer
This presentation is incomplete without reference to, and should be viewed solely in conjunction with,
the oral briefing provided by the European Investment Bank (“EIB”).
The terms and conditions are intended as an outline for discussion purposes only and made on an
indicative basis. This presentation is provided without any liability whatsoever by EIB and shall not
constitute any obligation of EIB to extend credit facilities or to carry out a due diligence review of the
aspects relevant for the financing of a project.
Neither this presentation nor any of its contents may be duplicated, published or used for any other
purposes without the prior written consent of EIB.
European Investment Bank
25Our long term Jean-Philippe Michaux
CFO
partnership with EIB Director of Finance, ICT, Public affairs & SustainabilityIngredients for bakery,
patisserie & chocolate
Puratos is an international group, which offers
a full range of innovative products and raw
materials for the bakery, patisserie and
chocolate sectors.
BAKERY PATISSERIE CHOCOLATEKey company data
Since Family
1919 owned
Products 9.300
in more
than 100 employees
countries in the world
Subsidiaries
80
in
61 production
plants
to serve
countries our customersWe continuously invest in R&D
Turning technologies, ingredients and experiences from food cultures
around the world into new opportunities
INNOVATION IS IN OUR DNA INNOVATION PURAMID R&D CENTRES
Inventor of T500
R&D
R&D
2,3%
of group’s revenue International R&D
6.000m2 Inspirience Center
the first complete improver
69
1.125 Local centres
in the world
Researchers & Technical AdvisorsOur long term partnership with EIB A common vision on R&D Long term partnership Very competitive conditions Specific expertise
Thank you.
LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? Q&A Olivier Joris
LA BANQUE EUROPÉENNE D'INVESTISSEMENT OCTROIE-T-ELLE DES PRÊTS À VOTRE ENTREPRISE ? LEENT DE EUROPESE INVESTERINGSBANK AAN UW BEDRIJF? Conclusion Kris Peeters
Verbond van Belgische Ondernemingen vzw Fédération des Entreprises de Belgique asbl Rue Ravensteinstraat 4, 1000 Brussel/Bruxelles BE476 519 923 – RPR Brussel/Bruxelles www.vbo-feb.be – events@vbo-feb.be
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