Investment Plan for Europe
The European Fund for Strategic
Investments (EFSI) : financing for SMEs,
start-ups and many more sectors
Maria Shaw-Barragan
Head of Strategy Division
Presentation in the Cyprus Funds Summit
Nicosia, 9 October 2015
European Investment Bank Group
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Introduction to the EIB: the EU bank
•
Shareholders are the 28 Member States
•
Largest multilateral lender and borrower in the world
•
Raising funds on the international capital markets
•
Pass on favourable borrowing conditions to clients
•
Some 440 projects each year in over 160 countries
•
Headquartered in Luxembourg and 30 local offices
•
Around 2 400 staff:
− Finance professionals, engineers, sector economists and socio-environmental experts
− More than 50 years of experience in financing projects
European Investment Bank Group
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EIB Lending Priorities (2014 activity volumes)
* includes EIB Group support to SMEs in the EU only
European Investment Bank Group
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Investment Plan for Europe: three strands
1. Improved investment environment: regulatory and
structural reforms at EU and national levels for
predictability, removing obstacles, aiming at a friendlier
investment environment
2. Making finance reach the real economy:
stepped-up technical assistance / advisory
by establishing European Investment Advisory
Hub (EIAH) in EIB and by EC facilitating a
project directory
3. Mobilising finance for investment: The European
Fund for Strategic Investments (EFSI), via EIB, to
better address the current shortage of (higher) riskfinancing in EU
Aim: to mobilise at least €315 billion in investment across the EU
European Investment Bank Group
EFSI: setup
European Fund for Strategic Investments (EFSI)

EFSI is NOT a fund or a
separate legal entity
 It is a contractual arrangement
between EC & EIB Group
 EFSI consists of:
− EUR 16bn EC guarantee in
favour of EIB
− EUR 5bn capital
contribution by EIB
− Target of generating EUR
315bn investment in 3 yrs
All operations are EIB Group operations
EFSI: What kind of operations?

Impact-oriented operations: objective to maximise economic impact in
EU through increased investments

Flexible, diverse products: adapted to client’s needs

Risk-absorbing products to trigger investments with higher risk profile
(additionality)

Commercially sound operations, economically and technically viable
(bankability)

Maximising private finance / capital

All 28 EU Member States coverage (and cross border)

Focus on employment creation and retention

Pricing commensurate with the risk (no subsidy)

Application for EIB loan directly to EIB or EIF or EIB Group partner
institution, no separate project list / route via authority or government
EFSI: what kind of products products ?
TYPICAL
PRODUCTS
OFFERED
SOURCES
OF FUNDING
European Fund
for Strategic
Investments
The Fund
serves as
credit
protection
for new EIB
activities
Long-term senior
debt for higher
risk projects
FINAL
RECIPIENTS
AND TYPICAL
PROJECTS
Other
investors
join in on
a project
basis
Subordinated loans
Equity and
quasi-equity
European Investment Bank Group
Transport
infra
Long-term
investment
funds
Broadband
infra, ICT
Energy infra
Innovation
Energy
Resource
efficiency
Research
Renewable
energy
Urban and
Social
Health and
Education
SMEs
MidCaps
EIB Group: helping business at every stage
of their development
Public stock or capital markets
Portfolio Guarantees & Credit Enhancement
VC Funds, Lower Mid-Market & Mezzanine Funds
Social Impact Funds
VC Seed & Early Stage
Microcredit
Business Angels,
Technology Transfer
PRE-SEED PHASE
SEED PHASE
START-UP PHASE
EMERGING GROWTH
DEVELOPMENT
SME Development Stages
European Investment Bank Group
EFSI: how can you access it ?
 All operations are EIB or EIF operations
 EIB and EIF normal appraisal and processes apply
 EIB governing bodies approve every operation
-
-
If you know the EIB, get in touch with your normal contact
Nicos Yiambides ([email protected])
Go on EIB’s website and find the individual in the Operations
Department responsible for the Member State where the project is
located or where your company is located
If in doubt, check out the EIB web page or contact the InfoDesk
European Investment Bank Group
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European Investment Bank
Group