Plenary session financing ftth networks day 1 hristo stoykov
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Transcript of Plenary session financing ftth networks day 1 hristo stoykov
New Products & Special Transactions | European Investment Bank
European Investment Bank
Financing of European Broadband Infrastructure
FTTH Conference 2011
H. StoykovStructured Finance & Advisory
9th of February 2011, Milan, Italy
209-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankDisclaimer
This Presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oralbriefing provided by the European Investment Bank (“EIB”). The terms and conditions are intended as an outlinefor discussion purposes only and made on an indicative basis. All figures set forth in this Presentation are subjectto change, to a satisfactory due diligence and to all necessary internal approvals of EIB (in particular of its creditcommittees).
The information in this Presentation reflects the prevailing conditions and the view of EIB as of this date and areaccordingly subject to change and based on carefully selected sources believed to be reliable. EIB has notindependently verified this information and does not make any representation or will be liable that suchinformation is accurate, valid, timely and complete.
This Presentation is provided without any liability whatsoever by EIB and shall not constitute any obligation of EIBto extend credit facilities to the Company or to carry out a due diligence review of the aspects relevant for thefinancing of the Project.
Neither this presentation nor any of its contents may be duplicated, published or used for any other purposeswithout the prior written consent of EIB.
European Investment Bank
309-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
409-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankProfile
EIB was created by the Treaty of Rome in 1958
EIB is a not-for-profit, policy driven institution
EIB is 100% owned by the 27 EU member states
EIB has subscribed capital of EUR 232.4 bn as of 2009
EIB is AAA/Aaa rated by Moody’s, S&P and Fitch with stable outlook
EIB funds itself on the capital markets: EUR 79.4 bn in 2009
EIB signed loans amounting to EUR 79.1bn in 2009 (c.93% in EU)
EIB is the majority shareholder in the European Investment Fund
For more information, please visit: www.eib.org
The European Investment Bank is the European Union‘s long-term financing institution. The Bank acts as an autonomous body set up to finance capital investments furthering European integration by promoting EU policies.
509-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAppendix: General Policy Objectives
I. Within the European UnionCohesion and convergence
Small and medium-sized enterprises (SMEs)
Environmental sustainability
Knowledge Economy
Trans-European Networks (TENs)
Sustainable, competitive and secure energy
II. Outside of the European UnionPrivate sector development
Infrastructure development
Security of energy supply
Environmental sustainability
Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI)
III. Under EU MandatesPre-accession
European Neighborhood
Development
609-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankEIB/EIF investment cycle coverage
Risk Capital CIP Resources (SME) RSFF (SME / MidCap)
Entrepreneur, friends, family
Business Angels
Seed/Early Stage VC Funds
Formal VC Funds
Bank Loans and Guarantees
Seed / Start-Up Phase Emerging Growth Phase Development Phase
Facility: High Growth Innovative SME Scheme (GIF), Ecotech
Purpose: IP financing, technology transfer, seed financing, investment readiness
Target Group: VC Funds, Business Angels
EIF Product: Fund-of-Funds
Competitivness and Innovation Program (CIP) Guarantee schemes
Growth financing for SMEs
Formal VC Funds, CLOs
SME guarantees (loans, microcredit, equity/mezzanine, securitisation)
RSFF
Innovation financing
SMEs/MidCaps, Banks, PE Investors (sub-investment grade)
Loans (incl. Mezzanine), Funded Risk Sharing Facilities with Banks (Investors)
Special Operations
Investment Loans
Investment Loans
RDI financing
MidCaps/Large Corporates/Public Sector Entities (investment grade)
Guarantees
Project Financing
Later StageCounterparts
EIF EIB
709-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
809-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankMarket & EU Policy Overview: State of Broadband
Broadband household penetration 2000-2009
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
of h
ouse
hold
s
EU27 average USA Australia Japan Korea
Coverage of different broadband technologies
0
10
20
30
40
50
60
70
80
90
100
DSL Cable FTTH/FTTB 3G
% o
f hou
seho
lds
/ pop
ulat
ion
EU average USA Korea Japan Australia OECD Average
Source: OECD
By 2009, 55.8% of EU households subscribed to some form of broadband internetStill lagging behind US, AU, JP and KR
xDSL coverage of 94% of EU households translates into broadband gap of close to 13 million households US leads in cable coverage, JP and KR in FTTx, while EU is almost at par in 3G coverage
Source: WBIS
909-02-2011 New Products & Special Transactions | European Investment Bank
I. Broadband Infrastructure Development
II. Application and Diffusion of ICT Across Sectors (Digital Single Market, Digital Inclusion, eGovernment)
III. ICT R&D and ICT Applications for Low Carbon Economy
European Investment BankMarket & Policy Overview: Europe 2020 - Digital Agenda
Digital Agenda Broadband Targets
Broadband Category Access Speed Enabling Technologies
Target I: Basic Broadband for all by 2013
Basic Broadband 150 kbps – 30 Mbps Copper (ADSL2, VDSL1, SDSLS), Cable (EuroDOCSIS 1.1/2), Mobile (EDGE, 3G, HSPA), Wireless (WiMax), Satellite
Target II: High or very high speed access to all by 2020 (30 Mbps or above)
High Speed 30 Mbps – 50 Mbps Copper (VDSL2), Mobile (HSPA+, LTE)
Very High Speed 50 Mbps – 100 Mbps FTTH (GPON, PtP), Mobile (LTE advanced)
Target III: 50% or more of EU households subscribe to Internet access above 100 Mbps by 2020
Ultra High Speed 100 Mbps – 1 Gbps FTTH (NGA1, NGA2, PtP), Cable (EuroDOCSIS 3)
1009-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankMarket & Policy Overview: Broadband Benefits
Correlation between broadband/mobile penetration and innovation in EU27
R2 = 0.4016
R2 = 0.0036
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%
Broadband/mobile Penetration
Inno
vatio
n S
core
boar
d V
alue
Broadband (Correlation 0.643) Mobile (Correlation 0.060)Linear (Broadband) Linear (Mobile)
Countries with higher broadband penetration, also perform better in innovation (see chart)
OECD estimates that building of national fiber to the home could result in savings of 0.5-1.5% in electricity, education, transport and healthcare
GSM association estimates that NGN would contribute to additional 0.5 –1.0% to the annual European GDP
Source: EIB estimates and European Innovation Scoreboard (UNU-MERIT)
1109-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
1209-02-2011 New Products & Special Transactions | European Investment Bank
ICT Signatures 2000-2010
RDI22%
Fixed NW7%
2G NW14%
Other6%
Fixed Broadband32%
Broadband51%
Mobile Broadband19%
Average annual lending for broadband projects for the last ten years was c.EUR 1.1bn (EUR 1.7bn for 2007-2010)
During the last financial crisis EIB increased lending to broadband projects by over 50% with signatures for 2009 of EUR 2.3bn
In 2009, loan approvals in the ICT sector reached EUR 3.9bn
Approximately 40% of these were for ICT Research, Development and Innovation
More than 50% of the approvals were for broadband projects including land, mobile and satellite
Nearly 2/3 of the approved broadband projects were fixed solutions
EIB investments to broadband infrastructures
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Fixed broadband Mobile broadband
mEUR
For an updated list of projects visit: http://www.eib.org/projects/loans/sectors/telecommunications.htm
European Investment BankBroadband Financing: direct loans to broadband infrastructure 2000 – 2010
1309-02-2011 New Products & Special Transactions | European Investment Bank
ZON Multimedia(Portugal)
EUR 100m
Project:EUR 307m (i.a. FTTH)
09-2009
Reggefiber Group B.V.(The Netherlands)
EUR 130m RSFF
Project: EUR 290m (FTTH)
10-2010
Fastweb S.p.A. (Italy)
EUR 350m
Project: EUR 850m (ADSL & FTTH)
02-2009
Iliad SA (France)
EUR 150m
Project: EUR 800m (FTTH & xDSL)
07-2009
Portugal Telecom (Portugal)
EUR 200m
Project: EUR 750m (FTTH)
07-2009
SONAECOM (Portugal)
EUR 75m
Project: EUR 152m (FTTH)
02-2010
M-Net Breitband Munchen (Germany)
EUR100m
Project: EUR 205m (FTTH)
12-2009
Türk Telekom(Turkey)
EUR 250m RSFF
Project: EUR 661m (FTTC & FTTB)
04-2010
For an updated list of projects visit: http://www.eib.org/projects/loans/sectors/telecommunications.htm
European Investment BankBroadband Financing: FTTx examples (2009 – 2010)
1409-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
1509-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankBroadband economics still not compelling
High Capex:Roll-out costs per country are enormous, thus incumbents willnot bear these costs alone;Altnets also need to chip in but at higher cost of funding andlimited borrowing capacity (see Top Chart);
Governments: full or partial support will be needed, butavailability of funding, pricing and austerity measuressuggest extended timetable for broadband roll-out (see LowerChart)
Regulatory uncertainty (“right of way”, wholesale access,wholesale pricing, etc.)Competition, especially from cable operators but in somecases altnets (e.g. France/Italy), could push incumbents toinvest in FTTH
but likely to concentrate of dense areas due to competitivethreats & capex efficienciesunderserved areas offer limited competitive pressures and highcapex; incumbents likely to preserve the current state
Demand: low subscription rates, unclear ARPU driversTechnology risks (incl. alternatives e.g. wireless, cable)Financial risks (Basel III, capital availability & cost offunding, corporate & sovereign credit rating actions,austerity measures, M&A)Other risks: economic, counterparty, etc.
European Telcos - 5yr CDS spreads (Jan 2007 - Jan 2011)
0
200
400
600
800
1000
1200
1400
1/1/07
1/4/07
1/7/07
1/10/0
71/1
/081/4
/081/7
/08
1/10/0
81/1
/091/4
/091/7
/09
1/10/0
91/1
/101/4
/101/7
/10
1/10/1
0
bpsSCMNVX
FRTEL
OOMLN
TELEFOA
TELNO
TLIASS
VOD
DT
KPN
NTC
PORTEL
TDC
TITIM
TKA
BRITEL
HTO
CWCLN
VMED
UPC
ERC
2007 2008 2009 2010
Source: Bloomberg
EU27(excl. LUX) 5YR CDS Spreads (bps)
0
200
400
600
800
1000
1200
01/01
/2007
01/03
/2007
01/05
/2007
01/07
/2007
01/09
/2007
01/11
/2007
01/01
/2008
01/03
/2008
01/05
/2008
01/07
/2008
01/09
/2008
01/11
/2008
01/01
/2009
01/03
/2009
01/05
/2009
01/07
/2009
01/09
/2009
01/11
/2009
01/01
/2010
01/03
/2010
01/05
/2010
01/07
/2010
01/09
/2010
01/11
/2010
01/01
/2011
UK
FR
DE
IT
NL
ES
PT
AU
SWE
DNK
BE
IRL
FI
POL
GR
CZ
HU
BG
RO
LAT
LIT
EST
MT
SL
CYP
SK
2007 2008 2009 2010
Source: Bloomberg
1609-02-2011 New Products & Special Transactions | European Investment Bank
EIB Existing Instruments
Projects must be:
• Technically sound
• Financially viable
• In compliance with regulation
• Show acceptable economic return
European Investment BankAddressable Market Segments
Black Areas
Estimated total investments EUR 220-280bn until 2020* - on average c. 50% of the total market cap for the sector
Black areasEUR 80-90bn**
Grey + WhiteEUR130-200bn
Certain Grey Areas
White & Certain Grey AreasGovernment funding plus “New risk-sharing instruments” or modified existing ones will be needed
Source: EIB estimates* Band based on various studies and assumptions** Black areas estimates based on industry forecasts
1709-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankFinancing Models and Concepts: What we can offer to broadband projects?
Corporates Project Finance Public Sector OtherBroadband project is definedand EIB is financing up to 50%of the eligible project costs(more information on this isprovided in the next slides) buton the balance sheet of thepromoter, i.e. the ability of thecompany as a whole to servicedebt is the main driving factorin the process along with theproposed structure of thefacility.
EIB also finances corporatesindirectly usually via third-partyfinancing institutions.
Broadband project isstructured as a ring-fencedoperation with limited or norecourse to the promoters.The quality of the assets andtheir ability to generate cashare vital for such type ofoperations.
PF operations could be full-risk, guaranteed (banks,corporates monolines,governments), secured,PPPs…
Broadband project may besupported indirectly via EIBfacilities extended to memberstate and local governments
Infrastructure funds
Advisory services
Other initiatives
1809-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankCorporate Financing Concepts: Definition of “Eligible Project Costs”
“The Project” is an internal EIB definition ofCapex/Opex expenses typically over 3years falling within certain eligibility criteriaof the Bank. From a credit perspective, itcould be defined as a “Borrowing base” ofwhich up to 50% could be financed by EIBproceeds.
If all project costs presented by thecompany are deemed “eligible” (to beconfirmed during the due diligence meeting)and thus included in the project definition,EIB will be able to provide a facility with amaximum amount equal to the lowest of:
50% of project costs, and
the applicable risk rating limits;
The remainder of the project costs is to becovered though other financings or throughoperating cash flows
Company
EIB Loan
Eligible Costs 2010
Engineering
Management
Civil works
2011 2012
€ 10m € 5m € 3m
€ 7m € 5m € 2m
€ 60m € 50m € 15m
Total Annual € 85m € 65m € 25m
Total Project € 175m
Min EIB Loan € 7.5m
Max EIB Loan€ 87.5 m (50%)
1
2
Other € 8m € 5m € 5m
Credit risk limiteither/or
1909-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankCorporate Financing Concepts: Example Financing Models
Bilateral Lending:EIB can participate in transactions usually through an EIB direct loan agreement. However, EIB typically prefers to co-finance with other financing partners (e.g. commercial banks, investors)In the case of co-financing EIB can provide a loan in parallel to the financing partners directly with the final beneficiary (with key contractual terms aligned) OR……can provide a guarantee to the financing partners and thereby share the credit risk and enable capital relief. The guarantee can also be complemented by EIB funding (in order to generate additional Financial Value Added)
Syndicated Lending:EIB can participate in syndicates, though some limiting factors can apply (i.e. EIB cannot extend funding to HoldCos in acquisition structures, only to OpCos; EIB still needs a side agreement that the company will execute the defined project, etc.)
Company
EIB (RSFF) Financing Partners
EIB Loan Agreement
Guarantee +/or Refinancing
FinancingAgreement(s)1
2
Senior SecuredSecond LienSenior UnsecuredJunior UnsecuredPIK loansMezzanine, etc.
Equity
Debt
2009-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankFinancing Models and Concepts: What we can offer to broadband projects?
Corporates Project Finance Public Sector OtherBroadband project is definedand EIB is financing up to 50%of the eligible project costs(more information on this isprovided in the next slides) buton the balance sheet of thepromoter, i.e. the ability of thecompany as a whole to servicedebt is the main driving factorin the process along with theproposed structure of thefacility.
EIB also finances corporatesindirectly usually via third-partyfinancing institutions.
Broadband project isstructured as a ring-fencedoperation with limited or norecourse to the promoters.The quality of the assets andtheir ability to generate cashare vital for such type ofoperations.
PF operations could be full-risk, guaranteed (banks,corporates monolines,governments), secured,PPPs…
Broadband project may besupported indirectly via EIBfacilities extended to memberstate and local governments
Infrastructure funds
Advisory services
Other initiatives
2109-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankProject Finance: Broadband Concepts
Passive Infrastructure
Company
Network Operator
Company
Service Company
Company
Service Company
Company
End Users
Promoter A Promoter B Promoter C
equi
tyequity
Laye
r 1La
yer 2
Laye
r 3 EIB financing in such a model can be envisagedat the SPV level under certain conditions.
Quality of the assets owned by the SPV, i.e.their ability to generate cash and service debt, iscrucial.
In general, a variety of risks are assessed duringdue diligence – features of the structure, risksrelated to financing (interest rates, refinancing,liquidity, etc.), implementation/construction andmanagement, documentation, regulation, collateral,technology, credit standing of the promoters, etc.
Some form of credit enhancement may beexpected. This may take the form of, but it is notlimited to:
recourse to the promoters – e.g. creditguarantees, performance guarantees, etc.
security over assetsthird parties guarantees – acceptable
banks, corporates, governments, etc.
Layer 1 is structured as a ring-fenced operation,an SPV, owned by promoters (e.g. operators,utilities, public sector, etc.). The SPV is the ownerof the passive infrastructure which is managed byan operating company. The latter sells capacity toservice companies which develop and sellservices to the end customers.
equitydebt
debt
2209-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankFinancing Models and Concepts: What we can offer to broadband projects?
Corporates Project Finance Public Sector OtherBroadband project is definedand EIB is financing up to 50%of the eligible project costs(more information on this isprovided in the next slides) buton the balance sheet of thepromoter, i.e. the ability of thecompany as a whole to servicedebt is the main driving factorin the process along with theproposed structure of thefacility.
EIB also finances corporatesindirectly usually via third-partyfinancing institutions.
Broadband project isstructured as a ring-fencedoperation with limited or norecourse to the promoters.The quality of the assets andtheir ability to generate cashare vital for such type ofoperations.
PF operations could be full-risk, guaranteed (banks,corporates monolines,governments), secured,PPPs…
Broadband project may besupported indirectly via EIBfacilities extended to memberstate and local governments
Infrastructure funds
Advisory services
Other initiatives
2309-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankPublic Sector Financing & Other Activities to support broadband
EIB extends credit facilities to local governments under framework agreementsEIB could collaborate with third parties such as national agencies in joint programs
Other special activities that may be relevant to broadband investments include:
RSFF Facility (under EIB window only – see Appendix)EIB equity participations in infrastructure fundsOther special operations such as JESSICA, JASPERS, JEREMIE (EIF)Advisory services such as EPEC (European PPP Expertise Center)
New Risk Sharing Schemes (2014 onwards)
2409-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
2509-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankLoan Process – Typical Timeline
….Month 1 Month 2 Month 3 Month 4
Initiation
A
Month 5
!
Concept Review
Due Diligence > Final Review
Contract Negotiations
Signature
Request for non-objection opinions from MS and EC
Due Diligence process involves financial, technical, economic, legal, environmental, and social aspects
Disbursement > Monitoring > Repayment
Concept review is based on preliminary information provided by the promoters.
First Approval by EIB Management Committee allows the staff to engage in an official appraisal process
For all operations EIB requests non-objection opinions from the concerned Member State(s) and the Commission
Second Approval by EIB Management Committee allows the presentation of the operation to the EIB Board of Directors (1 month in advance; 10 x p.a.)
Approval of EIB Board of Directors allows signature of the approved and negotiated structure
C
A
B
B
C
!
2609-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAgenda
European Investment Bank
Market & Policy Overview
EIB Broadband Financing
Financing Models and Concepts
Loan Process
Summary & Contact Details
2709-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankEIB Financing: Benefits for Promoters
Pricing advantage (EIB’s AAA rating and non-for-profit pricing)
Long maturities of up to 10 years for corporates (potentially longer for project finance)
Direct EIB financing from EUR 7.5m up to EUR 200m per transaction (for cross-over or sub-investment grade counterparts; other limits may apply in line with the internal credit policy of the Bank)
Strong technology/industry expertise
EIB does not sell assets on the secondary market (buy and hold strategy)
Relationship with co-financing partners: no cross selling of other products (just long-term lender)
Signalling Effect: EIB as a quality stamp
Diversification of funds
Note: EIB products are not grants but loan products
2809-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankMore Information & Contact Details
Thank you for your attention!
http://www.eib.org
Hristo Stoykov
Structured Finance & Advisory
Phone: (+352) 4379 87005Fax: (+352) 4379 67292email: [email protected]
European Investment Bank98-100, boulevard Konrad AdenauerL-2950 Luxembourg
2909-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAppendix: Abbreviations
RSFF – Risk-Sharing Finance Facility for higher-risk promotersJASPERS – Joint Assistance to Support Projects in European Regions to prepare projects supported by EU Structural and Cohesion FundsJEREMIE – Joint European Resources for Micro-to-Medium Enterprises in the regions to encourage more business start-ups and new ventures. Managed by the EIFJESSICA – Joint European Support for Sustainable Investment in City Areas for investment in sustainable urban developmentEPEC – European PPP Expertise CenterECTF – European Clean Transport Facility (approved by Ecofin)SFF – Structured Finance Facility established by EIB in 2001 to support sub-investment grade projectsCCF – Carbon Credit Funds created in collaboration with institutions such as EBRD and World BankELENA – European Local ENergy Assistance technical assistance facility financed through the Intelligent Energy Europe programme
3009-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAppendix: Lending and Own Capital Figures (as of end-2009)
Lending Own Capital
FYE 2009
3109-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAppendix: EIB General Organizational Structure
Board of Governors27 members
Board of Directors28 Directors (18 Alternates)
+ up to 6 experts
Management CommitteePresident of the EIB+ 8 Vice-Presidents
IG SCC SG-JU RH Ops A Ops B FI PJ RM TMR
Audit Committee
OCCO
Strategy and Corporate
Centre
General Secretariat
Legal Affairs
Human Resources
Finance Directorate
ProjectsDirectorate
Risk Management Directorate
EIB GroupCompliance Office
Operationsin the EU and
Candidate Countries
Operations outside the
EU and Candidate Countries
Inspectorate General
Transaction Management and
Restructuring
3209-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankAppendix: Risk Sharing Finance Facility (RSFF) – Set-up
Own Resources
EUR 1bn RSFF[up to EUR 10bn assuming
leverage of 5.0x ]
Direct Lending Indirect Lending / Financing
European CommissionEUR 1bn
Corporate LendingSenior SecuredSecond LienSenior UnsecuredJunior UnsecuredPIK loansMezzanine, etc.
Project FinancingUniversitiesOther: SPVs, PPPs, JTIs …
Financial Intermediaries(extend lending capacity)
Risk SharingCo-financing
Investment FundsRenewable EnergyOthers
Collaboration with EIFBanksFunds
1 2
3
4
3309-02-2011 New Products & Special Transactions | European Investment Bank
European Investment BankLoan Process – Counterparties
Structured Finance & Advisory
Project Directorate Legal Services
Risk Management Treasury, Other …
Loan Officer: origination, structuring, financial analysis
Economist/Engineer: economic, regulatory and technical analysis
Internal/External Lawyers: legal due diligence, contract
negotiation
Credit risk management, pricing & monitoring
Funding, disbursement, EC opinions, etc.
Main relationship point Due diligence and project eligibility evaluation
Mainly contract negotiations
EIB Team
Indirectly involved:
Promoter