EIB Investment in transport

EFSI and beyond

Matthieu Bertrand, EFSI Officer, Mandate Management, Operations Directorate, EIB

1st December 2017

Sofia

1 European Investment Bank Group

EIB products

LENDING BLENDING ADVISING

Loans But also: Guarantees Equity participation

Combining EIB finance with EU budget (EFSI, CEF Debt Instrument, CEF blending) Higher risk projects for innovation (InnovFin) Western Balkans Investment Framework (WBIF)

European Investment Advisory Hub (EIAH) Support projects for EU funding (JASPERS) Support for public/private partnerships (EPEC)

Attracting FUNDING for long-term growth

29/11/2017 European Investment Bank Group 2

We help catalyse investment

EIB Lending to Transport Sector 2007-2016

•3

0

2

4

6

8

10

12

14

16

18

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sign

ed a

mou

nt, E

UR

bn

Transport operations signed in EU Member States (2007-2016)

EUR 124bn

Air Maritime Other Rail Roads, Motorways Urban

Air 8%

Maritime 10%

Other 0%

Rail 36%

Roads, Motorways

21%

Urban 25%

Transport operations signed in EU Member States (2016)

EUR 10.6bn

Recent EIB lending (signed operations) some EUR 70bn per year. On average, transport projects have constituted some 15%-20% of

total lending.

Note: The data is the property of the EIB. For reproduction, prior permission from the EIB is required.

4

What is EFSI? Market-driven instrument

EFSI responds to the market’s demand for financing across eligible sectors and geographies

Supports bankable projects to overcome market failures in the access to finance and sub-optimal investment situations

No geographical or sectoral allocation

The EFSI guarantee allows the EIB to engage with bigger volume of high risk operations (“Special Activities”)

Debt Portfolios

EU Grt

EU risk

EIB risk

Residual Risk

Tranche (RRT)

Portfolio First Loss

Piece (PFLP)

EIB funding

Equity Portfolio +

EU Grt

EU risk

EIB risk

Pari Passu Financing

EIB funding

Pari Passu Financing

EFSI impact on EIB activities

5

=

Increase of share of risk financing

6

Typology of possible financial support according to project risks/bankability

Degree of bankability of the targeted projects

Revenues cannot support initial

investment costs/debt

Bankability – limited

risks

Bankability – higher

risks

Too risky to attract financing at acceptable terms without high risk coverage

Grants

Investment grants,

operating grants

Repayable grants,

subsidised interest

rates

EIB/EC Financial

instruments with high risk coverage by EU (InnovFin

– EDP Future CEF

Debt Instrument?)

EIB own-risk loans or

guarantees

EFSI loans or equity InnovFin Products

CEF Debt Instrument

EFSI Investment Platforms attracting investors with an EFSI

layer and a Portfolio FLP (combination with EU funds?)

Risk-sharing Mandates EIB/EC Special activity category Not for EIB Group

7

New areas for Equity Funds

• Funds with long term

focus • Smaller Funds

focusing on niche markets

• Funds established in cooperation with regional authorities

New products

• Link and de-linked risk-sharing products, both funded and unfunded

• Mezzanine investments

• Securitisations • Quasi-equity

products • More risk appetite

with same products

Impact of EFSI on EIB products

New forms of cooperation

• Investment Platforms

• Various forms of co-financing arrangements with NPBs

• Cooperation on pipeline monitoring and due diligence

• Partial and Full delegation models for risk-sharing

~80% of EIB counterparts under EFSI are new to EIB

35 Investment Platforms created

8 Transport represents ~15% of Investment under Infrastructure and Innovation Window

Geographical balance

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10

Types of approved EFSI transport projects

Investments in TEN-T Airports and Ports in DK, EE, EL, ES

Accessibility Ports Infra IP Tallinn Airport upgrade La Spezia Container Terminal

Railway infrastructure PKP LHS railway improvement project PPP Motorways in IT, SK, NL, DE, FR, LV, LT, PL, SI

Autovie Venete D4R7, Krakow bypass, DARS – Free Flow Tolling System

Rail Rolling stock projects in AT, DE, IT, UK, PL

Przewozy regionalne RT modernisation Trenitalia Regional RT, S-Bahn Hannover Rock Rail East Anglia…

Cleaner Urban Transport in ES, FR, LV, BE

Las Palmas Rapid Bus Transit Tramway de Liège PPP, Metro Madrid

Greener Shipping projects in FR, IE, IT, ES (Specific Guarantee risk-sharing instrument piloted under CEF for roll-out with EFSI)

+ Several funds and Investment Platforms in support of transport + RDI support to transport manufacturing companies (MerMec in rail, or

projects in the automotive industry for more efficient or lighter vehicles)

Next steps until 2020 and beyond

• Replication of products and successful models • Need to facilitate combination with ESIF and public funds

EFSI 2

• Increased complementarity with EFSI by taking even more risk to support Cleaner Transport Projects (e.g. charging infrastructure, cleaner fleets…)

CEF Debt Instruments

• Building upon experience of success of blending call, looking for a more systematic approach

Blending grants and financing

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�EIB Investment in transport�EFSI and beyondEIB productsEIB Lending to Transport Sector 2007-2016Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Geographical balanceSlide Number 10Next steps until 2020 and beyondSlide Number 12