European Investment Bank (EIB) - GlobalCapital · 2 008 2 009 total assets Source: EIB ˜ bn 0 50...
Transcript of European Investment Bank (EIB) - GlobalCapital · 2 008 2 009 total assets Source: EIB ˜ bn 0 50...
Supranationals - Europe
234 EuroWeek Financing supranationals and agencies
European Investment Bank (EIB)Rating Aaa, AAA, AAA
Bertrand de Mazières Director general, finance directorate
Barbara Bargagli Petrucci Director, capital markets
Peter Munro Investor relations & marketing
Key officials
The European Investment Bank (EIB) was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union. The task of the bank is to contribute towards the integration, balanced development, and economic and social cohesion of the EU member states.
The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. Besides supporting projects in the Member States, its main lending priorities include financing investments in future member states of the EU and EU partner countries.
The EU member states are fully eligible for bank financing operations, without any geographical or sectoral quotas being applied. Under its statute, the bank is authorised to have maximum loans outstanding equivalent to two and a half times its capital.
overview
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asset swaP sPread3.5% eu5Bn aPr 2016
*Forecast. Source: EIB
€ bn
0 10 20 30 40 50 60 70 80 90
2005
2006
2007
2008
2009
2010
20
11*
Gross Bond issuance
Source: EIB
€ bn
Benchmark deals36 Other plain
vanilla16.6
EUR Ecoops (incl FRNs)
11.1
Structured3.3
issuance By tyPe (2010)
Source: EIB
Central bank / official
institution 25%
Corporates / retail / other
9%
Bank 40%
Fund manager / insurance /
pension 26%
investor Base By tyPe (2010)
Source: EIB
Europe 54%
Middle East & Africa 4%
Asia 29%
Americas 13%
investor Base By reGion (2010)
*NOK, SEK, ZAR, RUB, NZD, PLN, HUF. Source: EIB
€ bn
USD23.1
EUR 26.2
GBP 5.6
AUD 4.266
CHF1.182 JPY
1.244
TRY1.384
Other*3.28
issuance By currency (2010)
The shareholders of the European Investment Bank are the 27 member states of the European Union. Each member state’s share in the bank’s capital is based on its economic weight within the European Union (expressed in GDP) at the time of its accession.
ownershiP structure
Supranationals - Europe
Financing supranationals and agencies EuroWeek 235
risk weighting (Basel ii): 0%
Guarantee: EU sovereign shareholders are legally bound to pay callable capital of €221bn on EIB demand, if required to meet financial obligations.
risK weiGhtinG / Guarantee
Source: EIB
€ bn
0 50
100 150 200 250 300 350 400
2005
2006
2007
2008
2009
total assets
Source: EIB
€ bn
0
50
100
150
200
250
2005
2006
2007
2008
2009
total caPital
*NOK, SEK, ZAR, RUB, NZD, PLN, HUF, TRY. Data at February 14, 2011. Source: EIB
€ bn
EUR114.1
GBP46.4
USD80.6
AUD14.826
JPY12.912
CHF7.162
Other* 14.78
outstandinG issuance By currency
rank lead Manager amount $m no of issues
% share
1 JPMorgan 10,233 50 11.6
2 Goldman Sachs 7,023 8 7.96
3 Barclays Capital 6,995 8 7.93
4 HSBC 6,807 22 7.72
5 Deutsche Bank 6,686 57 7.58
6 Morgan Stanley 5,889 8 6.68
7 UBS 5,580 14 6.32
8RBC Capital Markets
4,913 39 5.57
9 Credit Agricole CIB 3,645 10 4.13
10Bank of America Merrill Lynch
3,150 4 3.57
subtotal 60,920 161 69.05
total 88,222 251 100
Source: Dealogic (March 16, 2010 to March 15, 2011)
toP BooKrunners
Pricing date March 10, 2011
value Eu3bn
Maturity date January 15, 2021
coupon 3.625%
spread to benchmark 45bp over Bunds
Bookrunners Barclays Capital, Credit Agricole CIB, DZ Bank, Goldman Sachs
Pricing date March 9, 2011
value $3.5bn
Maturity date May 16, 2016
coupon 2.5%
spread to swaps 7bp
Bookrunners Goldman Sachs, Morgan Stanley, UBS
Pricing date January 21, 2011
value £300m
Maturity date December 7, 2015
coupon 3%
Bookrunners JPMorgan, RBC
Source: Dealogic
recent deals
standard & Poor’s
AAA, stable outlook
strengths•Strongassetqualitycomparedwithother
multilateral lending institutions•Expectedcontinuingsupportfromcommittedand
highly creditworthy shareholders•Relativelyhighcapitaladequacyratio
weaknesses•Highindividualcountryloanexposure•Highleveragerelativetoshareholders’equity
The stable outlook reflects S&P’s expectations that the quality of EIB’s loans and other assets will remain high, that the key role EIB plays within the financial arrangements of the EU will continue, and that EU member countries, particularly EIB’s largest shareholders and largest countries of operations will retain high credit ratings and remain willing and able to provide support if necessary. In S&P’s opinion, it is possible that EIB will continue to increase its leverage, resulting in a modest further decline in its Basel II ratios.
Key recent ratinG aGency coMMentary
fitch
AAA, outlook stable
The ratings reflect the strong support the European Investment Bank derives from European Union member states, its strong capitalisation and low exposure to credit risk. EIB’s capital is shared among the 27 EU member countries. Like other multilateral development banks (MDBs), only a fraction (5%) of subscribed capital is paid-in; the rest may be called if needed. In view of the shareholders’ credit standing (with an average rating of AA+ at end-2009) and of EIB’s key role as the financing arm of the EU, Fitch considers support would be provided if necessary. The payment of called capital is an obligation under EU treaty. However, ongoing public finance problems in some EU countries could prompt doubts over the medium term as to the capacity of some member states to respond to a potential capital call.
Key recent ratinG aGency coMMentary