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EUROPEAN INVESTMENT BANK
SB/07/15 15 December 2015 Document 12-2015 Final
FOR DECISION
E U R O P E A N F U N D F O R S T R A T E G I C I N V E S T M E N T S
S T E E R I N G B O A R D
KEY PERFORMANCE INDICATORS KEY MONITORING INDICATORS METHODOLOGY
Joint proposal by EC and EIB
Questions concerning this note should be referred to EFSI Secretariat: tel: +352 4379 82130; e-mail: [email protected]
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Key Performance Indicators / Key Monitoring Indicators Methodology
_________________________________________________________________________________
1. INTRODUCTION
This document sets out:
i. the methodology used to report separately on the IIW and the SMEW under EFSI, including
separate breakdowns for debt and equity-type operations for each window in accordance
with the EFSI Agreement, which has been jointly developed by the EIB and the EIF; and
ii. the methodology to determine an aggregated indicator for each Key Performance Indicator
(KPI) and Key Monitoring Indicator (KMI) by mapping corresponding indicators across both
windows, likewise developed as a result of collaboration between the EIB and the EIF.
Capitalized terms used in this document and not expressly defined herein shall have the meaning
ascribed to them under the EFSI Regulation, the EFSI Agreement or the relevant EIB/EIF Multiplier
Calculation Methodology Papers, as applicable.
The EFSI Regulation sets out four (4) KPIs, which capture various dimensions of EFSI (i) the value
added of operations (contribution to EFSI objectives, quality and soundness of projects and
technical and financial contribution); (ii) additionality (strongly linked to the risk profile of the
operations under EFSI); and the macroeconomic impact of EFSI (expressed through (iii) total
investment and (iv) mobilization of private finance).
In addition to the KPIs, the EFSI Agreement sets out six (6) KMIs which complement the KPIs in
providing an aggregated picture of EIB Group’s performance in connection with EFSI.
The KPIs and KMIs can be classified into two (2) categories; namely (i) those indicators which are
meant to report on the progress in relation to the use of the EU Guarantee and the fulfilment of
the objectives and criteria set out in Articles 6, 9 and Annex II of the EFSI Regulation (as
applicable); and (ii) those indicators which report on EFSI operations macroeconomic impact and
mobilisation of private capital.
Table 1 Overview KPIs and KMIs according to the EFSI Agreement
Indicator
typology
Use of the EU Guarantee and fulfilment
of objectives and criteria
Contribution to direct
macroeconomic impact and
mobilisation of finance
Key
Performance
Indicators (KPI)
- KPI 1: the value added scores of
operations, broken down by rating
distribution for: (i) contribution to EFSI
policy objectives; (ii) quality and
soundness of the project; and (iii)
technical and financial contribution
- KPI 2*: the share of operations signed
as special activities (by number of
operations and amount) out of the IIW
and the SMEW portfolios
- KPI 3: the total investment
- KPI 4: amount of private finance
mobilized
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Indicator
typology
Use of the EU Guarantee and fulfilment
of objectives and criteria
Contribution to direct
macroeconomic impact and
mobilisation of finance
Key
Monitoring
Indicators
(KMI)
- KMI 1*: the geographical
concentration, broken down by volume of
operations supported by the EU
Guarantee by country and number of
countries reached;
- KMI 2*: the sector concentration,
broken down by volume of signed
operations supported by the EU
Guarantee.
- KMI 3: notional internal guarantee
multiplier and the external
investment multiplier
- KMI 4: forecast number of direct
jobs to be created / sustained;
- KMI 5: the share of operations co-
financed with NPBs (by number of
operations and amount)
- KMI 6: the share of operations co-
financed with European Structural
and Investment Funds and other EU
instruments other than EFSI (by
number of operations and amount)
* In accordance with the EFSI Agreement Article 23 and Schedule II.A.3, “volume” refers to signed
amounts; the remaining KPIs/KMIs data is based on ex-ante estimates until project completion.
The KPIs and KMIs play a prominent role in measuring the achievement of the EFSI objectives.
They are key elements for the purposes of regular reporting to the EC, the European Parliament
and the Council, and of the evaluations, audit and reviews of EFSI. Furthermore, the KPIs/KMIs
are respectively reflected in EIB’s and EIF’s internal monitoring and planning framework. They are
relevant for both (i) ex-ante assessment of individual operations; and (ii) ex-post reporting.
KPI/KMI reporting covers only EFSI Guaranteed Operations (i.e. signed).
In accordance with the EFSI Regulation, the EFSI Agreement foresees aggregated reporting of the
KPIs and KMIs under the IIW and SMEW, as well as a break down for debt type operations and
equity type operations for each window. This creates the particular need to complement the KPIs /
KMIs Methodology for each window with a mapping methodology to aggregate data, despite
differences of both windows with regards to products, project types and use of the EU Guarantee.
In accordance with the EFSI Agreement, EIB will be responsible for aggregating the information
provided by EIF under each KPI / KMI in the terms set out below in order to provide the EC with
the mandatory operational reports.
As far as the IIW is concerned, the methodology for certain KPIs and KMIs is already in place, or
defined in other papers which have been submitted to the EIB Group and EFSI governance
structures separately for formal approval. For the avoidance of doubt, KPI / KMI calculations for
equity-type operations under the IIW shall refer to the EIB as well as the EU contributions invested
pari-passu.
As far as the SMEW is concerned, the proposed methodology applies to the existing EIF products
which form part of EFSI, independently from whether they benefit from the EU Guarantee in
accordance with the EFSI Agreement. In this sense, the KPI and KMI Methodology is presented for
the COSME Loan Guarantee Facility and InnovFin SME Guarantee, as well as for the EIB/EIF
equity products under the Risk Capital Resources Mandate (“RCR”) which is currently not covered
by the EU Guarantee. The proposed methodology will be amended as required upon approval of
new SMEW Products from time to time.
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2. KEY PERFORMANCE INDICATORS
KPI 1: Added Value of Operations
Definition as
per EFSI
Agreement
The value added of operations, broken down by rating distribution for
in case of IIW: (i) contribution to EFSI policy objectives; (ii) quality and soundness of the project; and (iii) technical and financial
contribution
in case of SMEW: (i) impact assessment, (ii) quality assessment, and (iii) contribution to the operation;
No target for this KPI on a portfolio level is determined in the EFSI Regulation.
Windows IIW SMEW
References
Annex to the Regulation 2015/1017 by the
establishment of a scoreboard of indicators for the
application of the EU Guarantee (document C(2015)
5176 ANNEX 1)
EFSI SMEW KPI1 Methodology (available upon request)
Methodology
Pillar 1: contribution to EFSI policy objectives (rating:
low (4), moderate (3), significant (2), high (1));
Pillar 2: quality and soundness of the project (rating:
marginal’ (4), ‘acceptable’ (3), ‘good’ (2), ‘excellent’
(1));
Pillar 3: technical and financial contribution (rating:
‘low’ (4), ‘moderate’ (3), ‘significant’ (2), to ‘high’ (1));
Differentiation: sub-indicators of pillar 3 are adjusted
for Multi Beneficiary Intermediated Loans (MBILs) to
assess capacity and effectiveness of intermediaries to
Debt operations in the form of
guarantee Equity products line
Pillar 1 – impact assessment
(portfolio contribution): graded
4 (low) to 1 (high
Pillar 2 – quality assessment:
graded 4 (low) to 1 (high)
Pillar 3 – financial contribution
assessment: graded to 4 (low)
Pillar 1 – specific market
needs: graded 4 (lowest)
to 1 (highest)
Pillar 2 – transactional
structure: graded 4
(lowest) to 1 (highest)
Pillar 3 – catalytic effect:
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deliver value added. to 1 (high)1
graded 4 (lowest) to 1
(highest)
Formula For each pillar separately: rating distribution by number
of operations and share of total operations
For each pillar separately: rating distribution by number of
operations and share of total operations
Aggregation
Mapping of sub-indicators
The following equivalence matrix will be applicable for the purposes of aggregation between the different pillars across the IIW and
SMEW:
EIF financial contribution assessment is internally defined as the contribution of EIF intervention to the underlying policy objective due
to its direct investment or due to EIF’s signalling effect, expertise, risk taking capacity. This criterion therefore better corresponds to the
contribution of EIF to EFSI policy objective. A detailed presentation of the pillars criteria is to be found in EFSI SMEW KPI1
Methodology. .
IIW SMEW
Debt operations in the form of guarantee Equity products line
Pillar 1: contribution to EFSI policy
objectives
Pillar 1: financial contribution assessment Pillar 1: specific market needs
Pillar 2: quality and soundness of the
project
Pillar 2: quality assessment Pillar 2: transactional structure
Pillar 3: Technical and financial
contribution
Pillar 3: impact assessment (portfolio
contribution)
Pillar 3: catalytic effect
1 Due to the fact that EIF has been entrusted by EIB to implement the SMEW, the debt operations’ financial contribution will be always deemed to be high for the purposes of KPI 1 in
accordance with the definition of the ‘financial contribution assessment’ under the EIF VAM.
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Windows IIW SMEW
Mapping of rating scores across windows
Ag. Rating Score 3PA – Pillar 1 3PA – Pillar 2 3PA – Pillar 3 SMEW-Debt SMEW-Equity
4 Low Marginal Low D / 4 / low D
3 Moderate Acceptable Moderate C / 3 / medium C
2 Significant Good Significant B / 2 / significant B
1 High Excellent High A / 1 / high A
Aggregated portfolio indicator
Reporting will be in the form of a table with aggregates broken down by the three pillars and the window (IIW, SMEW), for
which the percentage of number of operations falling into the respective rating class are calculated. Break-downs by sub-window
(equity, debt) are to be provided in further tables with the same structure.
As additional information, an aggregated portfolio indicator for each of the three sub-indicators (by window and by sub-window)
will be calculated, by assigning each rating a score of 1 to 4 (from highest to lowest rating), and calculating the average over all
operations falling into the respective portfolio. This factor, together with the above mentioned rating which is closest will then be
used as rating for the portfolio (e.g. “2.3 (=significant)” ) as follows:
Aggregated portfolio score for pillar < 1.5 high (pillar 1) / excellent (pillar 2) / high (pillar 3)
1.5 ≤ Aggregated portfolio score for pillar < 2.5 significant / good / significant
2.5 ≤ Aggregated portfolio score for pillar < 3.5 medium / acceptable / moderate
Aggregated portfolio score for pillar ≥ 3.5 low / marginal /low
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Examples
Debt-Type Low (4) Moderate (3) Significant (2) High (1) Score
# Ops % Ops # Ops % Ops # Ops % Ops # Ops % Ops
Pillar 1
IIW 1 1.5% 5 7.6% 50 75.8% 10 15.2%
2.0 significant
SMEW 0 0.0% 2 3.8% 30 57.7% 20 38.5%
1.7 significant
Total 1 0.8% 7 5.9% 80 67.8% 30 25.4%
1.8 significant
Pillar 2
IIW 0 0.0% 5 7.6% 22 33.3% 39 59.1% 1.5 high
SMEW 0 0.0% 16 30.8% 14 26.9% 22 42.3% 1.9 significant
Total 0 0.0% 21 17.8% 36 30.5% 61 51.7% 1.7 significant
Pillar 3
IIW 0 0.0% 50 75.8% 10 15.2% 6 9.1% 2.7 moderate
SMEW 1 1.9% 12 23.1% 15 28.8% 24 46.2% 1.8 significant
Total 1 0.8% 62 52.5% 25 21.2% 30 25.4% 2.3 significant
Pillar 1 (IIW) total score for equity product lines: (4 x 1.5%) + (3 x 7.6%) + (2 x 75.8%) + (1 x 15.2%) = 2.0 (significant)
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KPI 2: Share of operations signed as special activities
Definition as per
EFSI Agreement
The share of operations signed as special activities (by number of operations and amount). Reporting will be based on signed
amounts.
No qualitative target for this KPI on a portfolio level is determined in the EFSI Regulation
Windows IIW SMEW
References Section 10.1 of the EIB EU Credit Risk Policy Guidelines (“EU
CRPG”)
In the absence of such specific concept for EIF, Section
10.1 of the EU CRPG applies
Methodology
Section 10.1 of the EU CRPG defines Special Activities as the
collective denomination of those activities that entail a risk
that is greater than the risk generally accepted by the Bank,
in line with article 16.3 of the Bank’s Statute. Special
Activities are defined as:
Lending or guarantees having a risk profile which in EIB
terms correspond to a Loan Grading of D- or below. This
definition includes products deployed in the framework of
cooperation with the EC where part of the underlying risk is
absorbed by a third party,
Infrastructure funds and other fund participations, venture
capital activities, equity operations and other operations with
an equivalent risk profile.
The underlying SME risk in the framework of the SMEW
is consistent with the definition of ‘special activities’
provided under Section 10.1 of EU CRPG (see
methodology for IIW). All products under the SMEW are
deployed in the framework of cooperation with a third
party where part of the underlying risk is absorbed by
such third party (EC or EIB in the case of RCR). All these
operations are considered as being sub investment
grade and therefore in EIB Loan Grading approach
would have an EL greater than 2%. Therefore all
operations under the SMEW are deemed to be ‘special
activities’.
Formula
Special Activities: As per Loan Grading of the operation. For
the avoidance of doubt, the equity type operations are
considered 100% Special Activities; including with the
amount of EIB own resources.
100% of COSME LGF, InnovFin SMEG, RCR to qualify
as Special Activities
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Windows IIW SMEW
“By number” relates to the number of signed EFSI Operations
which fall under SA, compared to signed EFSI Operations not
falling under SA.
“By amount” relates to the signed total EFSI Financing
Volume falling under Special Activities, compared to the
signed total EFSI Financing Volume not falling under SA.
Aggregation Based on methodologies above, an aggregated KPI, separately by total number of operations and by total signature-amount,
will be calculated covering SMEW and IIW.
Examples
Aggreg
ate
EFSI Special Activities
EFSI Non Special
Activities
Share SA
number amount number amount
number amount
IIW 80 1,200.0 4 120.0
95.2% 90.9%
SMEW 20 600.0
100.0% 100.0%
Total 100 1,800.0 4 120.0
96.2% 93.8%
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KPI 3: Total Investment
Definition as
per EFSI
Agreement
The total investment is defined as follows:
In case of the IIW: the volume of additional EFSI-eligible investment (public or private, including financing mobilised through the EIF
under EFSI) in real economy.
In case of the SMEW: the maximum amount of financing available to Final Recipients multiplied by 1.4
Target to generate a total of EUR 315 billion investment by 4 July 2018 (three years of the date of entry into force of the Regulation).
However, performance on KPI3 will continue to be reported.
Windows IIW SMEW
References
IIW Multiplier Calculation Methodology (as approved by EFSI
Steering Board on 26/10/2015)
EIB Guidelines for Infrastructure Fund Activities (GIFA)
Multiplier calculation methodology set out in the EIF
Multiplier Calculation Methodology Paper (ref.
DCE/FIN/SPA-nk/2015-xxx) (the “EIF Multiplier
Calculation Methodology”)
Methodology
For investment loans,
direct equity type
For Intermediated operations, Funds Debt operations in the form of
guarantee Equity products line
The total investment is
equal to the total EFSI-
eligible Project
Investment Cost (PIC), as
defined in the Multiplier
Calculation
Methodology.
The total investment is equal to the total
EFSI-eligible Project Investment Cost (PIC),
as defined in the Multiplier Calculation
Methodology. It corresponds to the product
of the EFSI Financing amount times the
catalytic effect at intermediary / fund level
(together forming the Maximum Portfolio
Volume) times the multiplier at project level
The total investment is defined
as the “Maximum Portfolio
Volume” so determined
multiplied by a multiplier of
1.4x.
The maximum amount of
financing available to final
The total investment is equal
to the maximum amount of
financing available to final
recipients multiplied by a
multiplier of 2.5x.
The maximum amount of
financing available to final
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Windows IIW SMEW
(e.g. 1.4 for bank intermediated operations
throughout project lifecycle).
The Total Investment will be determined ex-
ante2
and reported to the EC at the time of
signature and updated and reported at
completion, as agreed in the multiplier
methodology paper.
recipients equals the
“Maximum Portfolio Volume” 3
.
In particular, the “Maximum
Portfolio Volume” means:
the total SME loan
portfolio guaranteed in
the context of direct
guarantee products; and
guaranteed SME loan
portfolio divided by the
counter-guarantee rate
provided by the financial
intermediary to its
beneficiaries.
recipients equals, ex ante, the
target fund size adjusted for,
inter alia, the possible
investments outside EU 28,
management fees and
reflows.
Such adjustment has been set
at 75% for the equity products
line.
The total investment is to be
updated ex post once the
amount of financing available
to final recipients can be
determined, as applicable
It being understood that past
closings where EIF has not
participated are not
considered under this
calculation
2
For funds/platforms, updated at signature, where needed
3 To be respectively calculated in accordance with the definition of the term “Maximum Portfolio Volume” under the Delegation Agreement in respect of the Financial Instruments under Horizon 2020 (the “H2020
DA”) and the Delegation Agreement in respect of the Financial Instruments of the Programme for the Competitiveness of Enterprises in small and medium-sized enterprises (COSME) (the “COSME DA”). Please refer
to footnote [3] below for further details regarding the calculation of the “Maximum Portfolio Volume” in connection with the debt-type SMEW Products.
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Windows IIW SMEW
Formula
For investment loans,
direct equity type
For Intermediated operations, Funds Debt operations in the form of
guarantee Equity products line
Total investment =
Total Project Cost
- adjustment if only
partial coverage of
project scope
- deduction of EU
co-financing
- deduction PIC of
subsequent EFSI
financing amount
which does not
support new EFSI
eligible investments
- deduction for non-
EFSI-eligible
components
For Debt:
Total investment =
Maximum Portfolio Volume (=EFSI
Financing amount multiplied by different
catalytic factor for SME/Midcap, risk-
sharing)
x 1.4 (external multiplier)
For Investment Funds / Platforms:
external multiplier and catalytic effect based
on information on investment policy
provided by the fund manager at time of
appraisal.
Total investment =
Maximum Portfolio Volume
x 1.4 (external multiplier)
Total investment =
target fund size (or final fund
size, as applicable)
x 0.754
(adjustments)
x 2.5 (external multiplier)
Aggregation
Based on the total investment amount calculated for IIW and SMEW in individual cases, the amounts for both windows can be added for
the purposes of aggregated reporting.
For the aggregation, the following procedure will avoid double-counting:
SMEW and IIW in same operation: When EIB and EIF co-finance the same project under EFSI, in theory, there could be double
4
In the case of RCR under EFSI a 0.88x adjustment is applied for management fees and reflows together with a 0.85x adjustment for the geographical repartition, as set out in the annex 2 “EIF EFSI Multiplier
Calculation Methodology”. The combination of those adjustments results in a 0.75x adjustment to the target fund size (or final fund size as applicable).
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Windows IIW SMEW
counting for an amount equivalent up to the size of the smallest portfolio of loans. As a conservative approach, by default and for
all co-financed operations across the board, the rate of overlapping will be estimated at 50% (assumption to be revisited based on
ex-post figures) of the size of the smallest portfolio of loans. This amount will then be distributed 25% on EIB and 25% on EIF
portfolio, thereby allowing keeping a proportionated relative size of the two portfolios (see example below).
EIB direct financing and EIB fund investment: Double-counting can occur when the Bank is directly providing EFSI support to an
operation, which has funds amongst its shareholders that EIB also supports under EFSI. In such case, in accordance with GIFA
chapter 3.10.3 (EIB multiple exposure to projects) the project cost will not be adjusted when calculating the ex-ante multiplier of the
operations and investment impact (at appraisal, submitted to the Investment Committee) but EIB will keep track of the double
counting and deduct the total double counting from the total investment cost ex-post (at reporting). A similar approach will be
envisaged for EIB investment via Platforms.
Examples
IIW, investment loan: total project cost 200; EU-co-financing 100; not-EFSI
eligible 10 KPI3 = 200 - 100 – 10 = 90
IIW midcap-loan: EFSI financing 30 KPI3 = 30 x 1.4 x 2 = 84
SMEW debt: maximum portfolio volume 100 KPI3 = 100 x 1.4 = 140
SMEW equity: Target fund size available for investments 100 KPI3 = 100 x
0.75 x 2.5 = 187.5
Double Counting SMEW – IIW: SMEW (fund) 100; IIW (loan) 150 maximum
overlap = 100, estimated overlap (50%) = 50, leading to reduction of 25 per window SMEW: 100 – 25 = 75; IIW: 150 – 25 =
125
Double Counting IIW direct – IIW fund: Direct loan project A 100; Fund 100, with an ex-post participation of 10 in project A ex
ante KPI3 = 200; ex post KPI3 = 200 – 10 = 190
KPI 3
Total Investment
Debt Equity Total
IIW 1,500.0 1,000.0 2,500.0
SMEW 400.0 400.0 800.0
Aggregated 1,900.0 1,400.0 3,300.0
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KPI 4: Amount of private finance mobilized
Definition as
per EFSI
Agreement
For the IIW: total amount of private finance mobilized by the EFSI Guaranteed Operations. In determining the amount of
private finance mobilised, only the amount of financing or risk-bearing capacity provided by non-public entities shall be
considered.
For the SMEW: The role of the private sector is defined as the SMEW target amount of private finance mobilized; in turn
defined as the maximum portfolio volume.
No qualitative target for this KPI on a portfolio level is determined in the EFSI Regulation. Instead, the EFSI Regulation calls to
“maximise where possible the mobilisation of private sector capital” (Article 6). This is based on the rationale that EFSI should
act as a catalyst for private finance by addressing market failures so as to ensure the most effective and strategic use of public
money (see Preamble 23).
Windows IIW SMEW
References
IIW Multiplier Calculation Methodology (as approved by
EFSI Steering Board on 26/10/2015)
EIB Credit-risk policy guidelines (CRPG)
Respectively, the H2020 DA and COSME DA for the
guarantee SMEW Products under the debt sub-window
EIF Multiplier Calculation Methodology
Methodology
The private finance mobilized is calculated by starting
from the total investment (KPI 3), and deducting any
amount of financing or risk-bearing capacity provided by
public entities. The latter will comprise EIB/EIF financing
(EFSI and non-EFSI under both windows), as well as co-
financing with NPBs and/or with other public entities, and
National grants (ESIF and EU funds already excluded
from PIC).
In case of the IIW, in the absence of separate co-
financing breakdowns for the EFSI-eligible PIC, the
distribution for the total PIC will be used as a proxy (i.e. it
is assumed that if part of the project cost is not EFSI-
Final recipients are assumed to be fully private. Therefore the
amount of private finance mobilized is calculated by deducting
any amounts corresponding to EIF and/or public of financing or
risk-bearing capacity from the total investment amount (KPI 3).
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Windows IIW SMEW
eligible, the non-eligible part is distributed on public and
private co-financiers according to their overall financing
share)
In case of lending via intermediaries and funds, all final
recipients are assumed to be private unless the specific
operation targets public entities (in line with EIF
methodology).
Classification of counterparts and co-financiers into
public and private will be based on promoters’
information at the time of approval / signature and the
EIB counterpart database used to classify counterparts.
The classification of counterparts will be further refined by
EIB in consultation with EC.
Formula
Amount of private finance mobilized =
Total investment (as calculated for KPI3) minus
- EIB/EFSI financing amount **
- co-financing by member states *
- co-financing by NPBs *
- co-financing by other public entities 5
*
- equity investment public borrowers
* eventually adjusted to reflect PIC adjustments
** including guarantees and investment amounts
Amount of private finance mobilized =
Total investment (KPI 3) minus
- EIF/EFSI financing amount
- co-financing by member states
- co-financing by NPBs
- co-financing by other public entities
- equity investment by public entities
Aggregation The total amount of private finance mobilized will be aggregated for IIW and SMEW, with break-downs by windows (IIW,
5
The adjusted Project Investment Cos (PIC) already includes the deduction for the EU co-financing.
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Windows IIW SMEW
SMEW) and sub-window (equity, debt) in accordance with the EFSI Agreement.
Based on the methodology above, an aggregated KPI will be calculated covering signature-amounts of SMEW and IIW.
Examples
total investment 100; co-financing 20 NPB, 80 other; Private Finance Mobilized = 100 – 20 = 80
same example, but public borrower (equity 10) Private Finance Mobilized = 100 – 20 – 10 = 70
KPI 4
Private Finance Mobilized
Debt Equity Total
IIW 1,000.0 900.0 1,900.0
SMEW 200.0 300.0 500.0
Aggregated 1,200.0 1,200.0 2,400.0
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KEY MONITORING INDICATORS
The Key Monitoring Indicators (KMIs) complement the KPIs in providing an aggregated picture of EIB Group’s performance in connection with EFSI.
Different from KPIs, KMIs do not represent a specific target and their outcome is in certain instances beyond the control of the EIB Group. The KMIs are
measured cumulatively up to (and including) the period under review.
KMI 1: Geographical concentration
Definition as per
EFSI Agreement
For the IIW: the geographical concentration is broken down by volume of operations supported by the EU Guarantee by country
and number of countries reached
For the SMEW: geographical concentration at financial intermediary level will be broken down by volume of operations supported
by the EU Guarantee by country, and number of countries reached.
Windows IIW SMEW
References Investment Guidelines of the EFSI Regulation
(Draft) Paper on Strategic Orientations of EFSI
Debt operations in the form
of guarantee Equity products line
Methodology
For IIW direct operations:
Volume by country: signed EFSI financing amount
distributed using country-percentages at operation
By # countries reached: the number of EU-28
countries in which projects are located
For IIW intermediated operations / funds:
Volume by country: the signed amount defined as
the EFSI financing amount signed at financial
intermediary level, broken down by EU-28 countries
The following criteria will apply
for the purposes of determining
the geographical
concentration:
Volume by country:
the signed amount at financial
intermediary level defined as
the EFSI contribution (i.e. up to
EUR 500m in the case of
The following criteria will apply for the
purposes of determining the geographical
concentration:
Volume by country:
target fund size (or final fund size, as
applicable)
x 0.75, as defined in KPI3,
broken down by EU-28 countries in which
eligible beneficiaries have received, or are
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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Windows IIW SMEW
in which final beneficiaries / underlying projects
have received (at the time of completion), or are
estimated to receive (at the time of signature, based
on the information provided by the fund
manager/promoter, if this is not available using
“regional EU”), financing pursuant to EFSI.
For de-linked structures, ex-ante reporting will be
based on country-breakdown for new portfolio at
appraisal / signature stage (based on the
information provided by the fund
manager/promoter), and ex-post the real
distribution.
By # countries reached: the number of EU-28
countries in which final beneficiaries / underlying
projects have received, or are estimated to receive,
financing pursuant to EFSI.
Special case: For cross-border operations, the amounts
falling in non-EU countries will be excluded from the
calculation and listed separately as an info-item.
COSME and up to EUR 750m
in the case of InnovFin),
broken down by EU-28
countries in which eligible
beneficiaries have received, or
are estimated to receive,
financing pursuant to EFSI.
By number of countries
reached:
the number of EU-28 countries
in which eligible beneficiaries
have received, or are
estimated to receive, financing
pursuant to EFSI.
estimated to receive, financing pursuant to
EFSI.
For these purposes, funds and funds of funds
active in multiple countries will be reported
ex ante under the ‘multi-country’ category, as
applicable, to be updated ex post in
accordance with the final composition of the
relevant portfolio
By number of countries reached:
the number of EU-28 countries in which
eligible beneficiaries have received, or are
estimated to receive, financing pursuant to
EFSI.
Aggregation
The geographical concentration limits at the end of the initial investment period, requested by the Investment Guidelines and defined
in the Draft Paper on Strategic Orientations for EFSI, apply only to the IIW.
The KMI also foresees an aggregated geographical concentration covering both windows to be calculated. .Based on methodology
above, an aggregated KMI will be calculated covering EFSI financing-amounts across windows. This complements the above
mentioned geographical concentration guidelines requested in the investment guidelines, which cover the IIW only.
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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Windows IIW SMEW
Examples
KMI 1 Aggregated IIW SMEW
Country 1 1,100.0 25.9% 1,000.0 100.0
Country 2 0.0 0.0% 0.0 0.0
…
Country 28 150.0 12.0% 150.0 0.0
Number of Countries 2.0 2.0 1.0
Operation with 30% FRA / 70% GER, 200 EFSI financing 60 FRA; 140 GER; 2 countries
Fund: ex-ante as “multi-country” with full volume and no impact on number of countries reached, ex-post depending on final
composition of portfolio
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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KMI 2: Sector concentration
Definition as
per EFSI
Agreement
The sector concentration is broken down by volume of operations supported by the EU Guarantee by sectors defined by the Steering
Board in accordance with the Investment Guidelines.
For the SMEW: sector concentration at final recipient level based on actual data, broken down by volume of operations supported by the
EU Guarantee by sector as derived from the NACE level 1 code.
Windows IIW SMEW
References
Investment Guidelines of the EFSI Regulation
(Draft) Paper on Strategic Orientations of EFSI
Provisions on sector concentration, if any, will be mentioned in the
relevant product annexes to Schedule VII of the EFSI Agreement
EVCA – NACE level 1 mapping table:
http://www.investeurope.eu/media/12926/sectoral_classification.pdf
Methodology
The sector concentration is measured by signed EFSI
Financing amount, broken down by the sectors per
NACE level 1 code.
In case of the IIW, the data will also be reported broken
down by the general objectives as per the Article 9(2) of
the Regulation for the purpose of: (i) the semi-annual
reporting foreseen in Schedule II of the EFSI Agreement
and (ii) the indicative sectoral concentration limits in
accordance with the Investment Guidelines.
The sector concentration will be determined by the signed amount at
financial intermediary level defined as the EFSI contribution (as
defined under KMI 1 above) received by eligible final recipients
classified per NACE level 1 code.
For equity product lines, the sector concentration will be determined by
the target fund size (or final fund size, as applicable) x0.75 (as defined
under KMI 1 above), as per the Invest Europe (formerly EVCA) sector
table of correspondence mapping EVCA sector classification and
NACE level 1 code
Formula
Sector concentration =
EFSI financing amount falling into sector
/ Total EFSI financing amount
n/a
Aggregation The KMI also foresees an aggregated sector concentration covering both windows to be calculated. Based on methodology above, an
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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Windows IIW SMEW
aggregated KMI will be calculated covering EFSI financing-amounts across windows.
Examples
KMI 2 Aggregated IIW SMEW
Amount Percent Amount Percent Amount Percent
Sector 1 1,100.9 88.0% 1,000.0 87.0% 100.0 100.0%
Sector 2 0.0 0.0% 0.0 0.0% 0.0 0.0%
Sector 3 150.1 12.0% 150.0 13.0% 0.0 0.0%
… … … … … … …
Total 1,251.0 100.0% 1,150.0 100.0% 100.0 100.0%
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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KMI 3: Notional Internal Guarantee Multiplier and External Investment Multiplier
Definition as per
EFSI Agreement
The notional internal guarantee multiplier and the external investment multiplier
In the case of the IIW, the EFSI Steering Board approved the methodology to calculate the multiplier on 26/10/2015.
In case of the SMEW: the SMEW notional internal guarantee multiplier is to be computed as the EFSI financing divided by,
respectively, (i) the portion of the EU Guarantee allocated to the support of the relevant operations; and (ii) the investments
from the RCR Mandate in the relevant operations. The SMEW external investment multiplier is to be computed as the total
SMEW investment (i.e., KPI 3) divided by the EFSI financing.
Windows IIW SMEW
Reference IIW Multiplier Calculation Methodology (approved by
the EFSI Steering Board on 26/10/2015)
EIF/EFSI Multiplier Calculation Methodology
Methodology
The notional internal guarantee multiplier and the external
investment multiplier are to be determined in line with the
IIW Multiplier Calculation Methodology.
The notional internal guarantee multiplier and the external investment
multiplier will be determined pursuant to the methodology set out in
the attached EIF Multiplier Calculation Methodology.
Formula
Notional [ex-ante] Internal Multiplier at project level
=
For equity and equity-type operations: 1
For debt-type operations: 4
External Multiplier = Total EFSI-eligible Investment
/ EFSI Financing amount
The Notional Internal Guarantee Multiplier will be calculated
pursuant to the formula set out in the attached EIF Multiplier
Calculation Methodology.
External Investment Multiplier = KPI 3 / EFSI financing
Aggregation
EIF will report separately on the figures for (i) the EFSI financing under COSME LGF, InnovFin SMEG and RCR (respectively,
as defined above); (ii) the COSME LGF and InnovFin SMEG contribution used up to the relevant date under EFSI; and (iii) the
investments from the RCR Mandate in the relevant operations.
For the calculation of a multiplier for a portfolio of operations, the multipliers will be calculated for the aggregated figures for
the i) portion of the EU Guarantee allocated (as applicable), ii) the EFSI Financing amount, iii) the Total Investment.
Key Performance Indicators / Key Monitoring Indicators Methodology – Meeting SB/07/2015
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Examples
KMI 3
Utilization EU Guarantee EFSI Financing Total Financing
Debt Equity Total Debt Equity Total Debt Equity Total
IIW 1,250.0 1,000.0 2,250.0 5,000.0 1,000.0 6,000.0 20,000.0 18,000.0 38,000.0
SMEW 117.6 400.0 517.6 400.0 400.0 800.0 2,000.0 6,000.0 8,000.0
Aggregated 1,367.6 1,400.0 2,767.6 5,400.0 1,400.0 6,800.0 22,000.0 24,000.0 46,000.0
Notional Internal Multiplier 6,800.0 / 2,767.6 = 2.456961
Notional External Multiplier 46,000.0 / 6,800.0 = 6.764706
Notional Total Multiplier 2.456961 * 6.764706 = 16.62062
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KMI 4: Employment impact
Definition as
per EFSI
Agreement
Forecast number of direct jobs to be created or, as regards multi-beneficiary intermediated loans, sustained (which shall be reported
separately);
For the SMEW, the forecast number of direct jobs will be created based on available information (i.e. surveys)
Windows IIW SMEW
References Standard methodology for its 3 Pillar Assessment
(3PA) as updated in CA/485/15 and CA/487/15s
n/a
Methodology
In case of investment projects, this refers to the
forecast number of direct jobs as estimated for
each project separately, both for project
implementation and for operation.
As regards multi-beneficiary intermediated loans, it
refers to jobs sustained, in line with standard 3PA
methodology.
Given the two separate concepts, an aggregation
of both figures would be misleading and it is
therefore proposed to report the two separately.
Debt operations in the form of
guarantee Equity product lines
The employment impact will be
calculated by the number of jobs
supported6
at the time of first
inclusion of the final recipient in the
relevant guarantee portfolio.
Direct jobs created will be
forecasted to the extent surveys are
available
The employment impact
will be calculated by the
number of jobs supported
at the time of the first
investment in the relevant
fund.
Direct jobs created will be
forecasted to the extent
surveys are available
Aggregation Figures for direct jobs and jobs supported will be reported separately but aggregated across both windows.
6
jobs supported is equivalent to jobs sustained
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Windows IIW SMEW
Examples
KMI 4
Direct Jobs Created Jobs Sustained
Debt Equity Total Debt Equity Total
IIW 1,000 300 1,300 400,000 200,000 600,000
SMEW 0 300,000 200,000 500,000
Aggregated 1,000 300 1,300 700,000 400,000 1,100,000
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KMI 5: Share of operations co-financed with NPBs
Definition as
per EFSI
Agreement
The share of operations co-financed with NPBs (by number of operations and amount)
For SMEW, the NPB co-financing is defined as the SMEW share of operations co-financed and/or risk-sharing with NPBs (both by
number of operations and amount).
Windows IIW SMEW
References The EIB/EIF will maintain a list of all banks and institutions falling into the NPB category.
Methodology
The following criteria will apply to determine NPB co-financing:
By number of operations: the total number of EFSI operations with NPB co-financing; and
By amount: the total signed amount of EFSI financing in operations involving NPB co-financing
Aggregation Based on the methodology above, an aggregated KMI will be calculated across windows.
Examples
KMI 5: NPB
By Number
Operations By Volume Operations
Share by Number Share by Volume
Debt Equity Total Debt Equity Total
Debt Equity Total Debt Equity Total
IIW-NPB 90 20 110 1,000 100 1,100
IIW 30% 40% 31% 25% 10% 22%
IIW-Total 300 50 350 4,000 1,000 5,000
SMEW-NPB 30 10 40 200 20 220
SMEW 30% 67% 35% 20% 33% 21%
SMEW-Total 100 15 115 1,000 60 1,060
Aggregated-NPB 120 30 150 1,200 120 1,320
Aggre-
gated 30% 46% 32% 24% 11% 22%
Aggregated-
Total 400 65 465 5,000 1,060 6,060
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KMI 6: Share of operations co-financed with ESIF and other EU instruments
Definition as per EFSI
Agreement
The share of operations co-financed with European Structural and Investment Funds and other EU instruments other than
EFSI (by number of operations and amount);
Windows IIW SMEW
References n/a n/a
Methodology
The operations which involve EU co-financing will be
flagged in the system
By number: number of operation with EU co-financing
(incl. ESIF and EU-managed programmes)
By amount: sum of signed EFSI financing over all
operations with EU co-financing (incl. ESIF and EU-
managed programmes)
The following criteria will apply to determine the EU co-
financing for equity product lines (for debt operations not
applicable):
By number of operations: the total number of
transactions with EU co-financing in the equity sub-
window (incl. ESIF and EU-managed programmes);
and
By amount: the total volume of EFSI financing in
operations involving EU co-financing (incl. ESIF and
EU-managed programmes).
Aggregation Based on the methodology above, an aggregated KMI will be calculated across windows (similar to KMI5 table).