El Papel del

Fondo Europeo de Inversiones

Barcelona, 14 de marzo de 2014

José Cabrita

What is the EIF?

Section One

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A few key facts about us…

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EU specialised institution for SMEs, risk financing

Venture Capital and Mezzanine (fund of funds, business angels)

Structuring and Guaranteeing portfolios of SME and microfinance loans/leases

Authorised Capital

€ 3bn

EIB: 62.1%

EU: 30 %

Fin. institutions: 7.9 %

Geographic Focus /

Intermediaries

EU 28, EFTA,

Candidate Countries

Always working with

Financial Intermediaries

AAA rated Dual Objective

Meeting EU Policy Goals Generating a Satisfactory Return on Equity

Helping SME businesses

at every stage

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SME Development Stages

PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH DEVELOPMENT

HIGHER RISK LOWER RISK

Public Stock Markets

Business Angels,

Technology Transfer

Microcredit

VC Seed & Early Stage

Portfolio Guarantees & Credit Enhancement

Formal VC Funds & Mezzanine Funds

Our business partners

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We work with a wide range of

business partners to support SMEs “ ”

micro-

enterprises,

SMEs

and small

mid-caps

Resources and

Mandators EIF own resources

European Investment

Bank

European Commission

Member States/Regions

Development Agencies

Corporates/private

Public institutions

Other third parties

Business

Partners

Fund Managers

Commercial Banks

Development &

Promotional Banks

Guarantee Institutions

Leasing Companies

Corporates

Business Angels

Microfinance Institutions

Sample EIF Transactions

Leveraging on EC Resources

Section Two

Optimising EU resources

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We manage programmes that deploy

SME funding to promote entrepreneurship

and innovation across Europe “

” Comp. & Innovation

Programme (CIP)

Guarantee and Venture

Capital instruments aiming

at promoting

competitiveness, innovation,

entrepreneurship and access

to finance

Available budget of over

EUR 1,100m

Risk-Sharing

Instrument (RSI)

Pilot project

Launched in Dec 2011,

targeting innovative and

research-oriented

SMEs and small mid-caps

Target aggregate portfolio of

EUR 2.5bn in loans

(guarantee amount of

EUR 1.25bn)

Progress

Microfinance

Joint EIB-EC-EIF initiative

Supporting micro-enterprises

and the social economy

EUR 200m made available

jointly by the EC and the EIB

JEREMIE

Delivering financial

engineering with structural

funds

Regional / National holding

funds with greater delegation

to managing authorities

14 JEREMIE holding funds

under management for a

total of EUR 1,100m

JEREMIE: Delivering financial

engineering with Structural Funds

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European Commission

ERDF – DG Regio

Managing Authority

Holding Fund / Holding Fund Manager

Financial intermediaries

SMEs and micro-enterprises

Regio

na

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/Lo

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Nation

al/

Regio

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Lo

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eve

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Nation

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or

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l Disbursement Up front

Irreversible

Local Holding Fund Greater delegation to Local Authorities

Management/administration are outsourced to

a Holding Fund Manager which is selected by

the Member State / region Holding Fund Manager

Role of the Holding Fund Manager Structure investments, select Financial

Intermediaries

Administer, monitor & report on investments

Attract a syndicate of financial intermediaries and

investors

Closely collaborate with national/regional authorities

JEREMIE Extremadura:

Portfolio Risk Sharing via Banco Santander

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Structure

PRSL objective is to incentivize banks to extend loans and

similar debt financing to SMEs, through a portfolio credit

risk sharing. The PRSL is a loan from EIF to a Financial

Intermediary, combined with a risk sharing of the underlying

SME loans financed through the PRSL. The Financial

Intermediary tops up the EIF loan

Final Beneficiaries:

SMEs or self-employed incorporated in Extremadura

PRSL Pricing

The JEREMIE portion is priced at attractive rates that can be

as low as 0%

Financial Benefit to SMEs

Differential between market rate and PRSL interest rate plus

any intermediation cost left at the Intermediary level

Typically 50% risk coverage

JEREMIE co-financing in Extremadura: 60%

Banco

Santander

‘Borrower’

PRSL

Losses

PRSL Interest

Interest

EIF

( ‘ Lender ’ )

EIF Co financing

and risk sharing rate

SME Borrower

SME Borrower

SME Borrower

SME Borrower

Intermediary

‘ ’

EIF

‘ Lender ’

Pari - passu

Losses*

Portfolio

of SME

loans

issued by

Santander

Santander Co financing

and risk sharing rate

Innovative and Research oriented SMEs and small Mid-Caps

EIF mandated to implement the RSI Facility

Purpose - improve access to debt finance for innovative SMEs

and Small Mid-Caps (Beneficiaries)

Objective: Incentivise financial intermediaries to extend loans and

leases to SMEs and small mid-caps with significant Research,

Development and Innovation activities (loans from EUR 25k to

7.5m, up to 7y maturity)

EIF provides financial guarantees to selected Financial

Intermediaries (FIs)

Transfer of benefit

Acceptable portfolio risk profile

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Risk-Sharing for Innovation (RSI)

In the beginning of 2013, a EUR 60m guarantee transaction was signed

with Bankinter – total loan portfolio of EUR 120m, guarantee rate 50% of

losses incurred in each loan, availability 24 months

Following the success of the transaction and its receptivity by innovative

SMEs, a change has recently been approved to increase the guarantee

amount to EUR 80m, allowing for a total loan portfolio of EUR 160m

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RSI case study in Spain Bankinter

EIF As guarantor

Risk retained by

Guarantee Rate at 50% on a loan-by-loan basis

Risk covered by the

Portfolio of SME and mid

cap loans issued by Bankinter

CIP financial instruments managed by EIF on behalf of the EC

Purposes

Encourage the competitiveness of European enterprises

Support innovation and entrepreneurship activities

Provide better access to finance

Promote the increased use of renewable energies and energy

efficiency

Products

Guarantees: SME Guarantee Facility

Venture capital: High Growth and Innovative SME Facility

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Competitiveness and Innovation

Programme (CIP)

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CIP case study in Spain Counter-guaranteeing CERSA

Guarantee Rate at 35% =

Guarantee Amount of EUR 385m

Cap Amount at 7% of 35% =

EUR 26.95m

Max Portfolio Volume Benefiting from

CIP Guarantee: up to EUR 1,100m

Portfolio of counter-

guarantees issued by

Cersa

Risk retained by

CERSA

Risk covered by the

CERSA

EIF: 2013 and Beyond

Section Three

EIF in 2013 and beyond

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The EIF is fully committed to continue the

successful implementation of European Initiatives for

the new programming period 2014-2020 “

”

COSME

Potentially the successor

initiative for the

Competitiveness and

Innovation Programme

facility

Risk-Sharing

Instrument II (RSI2)

Possibility of continuing the

collaboration with the

European Commission via

an increment of the RSI

budget (Horizon 2020?)

Progress

Microfinance

Good absorption and

receptivity of the current

Progress may lead to a top-

up of the programme

JEREMIE II

Continue the delivery of

financial engineering while

leveraging on structural

funds, in partnership with

MS/Regions

Legal basis of future funding programme currently being finalised

Discussions between the EIF and the European Commission are at present on-going

Terms and Conditions for each of the programmes under discussion

Interaction with Regions and Member States regarding the next Operational

Programme to start soon

Contact details

José Cabrita, Responsible de la oficina del FEI en España

j.cabrita@eif.org

Fondo Europeo de Inversiones

C/ José Ortega y Gasset 29, 6ª

28006 Madrid

+34 91 436 0863

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