The 5W1H of financing Innovation and Circular Economy Driving Towards Circularity, Bratislava, 07.11.2017 Darragh Mac Neill Senior Industry Advisor, EIB Projects Directorate European Investment Bank Group 1
Who are we? World’s Largest multilateral lender and borrower • Natural financing partner for the EU institutions since 1958 • Around 90% of lending is within the EU • Shareholders: 28 EU Member States Lending priorities Environment Infrastructure Innovation SMEs* EUR EUR EUR EUR 16 .9 bn 19 .7 bn 13 .5 bn 33 .6 bn Financing sound investments from basic research to commercial scale plants. * Small and Medium Enterprises European Investment Bank Group 2
How does the EIB support clients? • Typically larger SMEs, Mid-Caps and Corporates Direct • Direct Senior and Subordinated Loans Financing • Tailored products for innovative projects involving higher risk. • Via banks, investment platforms and funds Intermediated • Loans and guarantees Financing* • Early project assessment and identification Advisory • Supervise preparation of project deliverables Services* • Policy and implementation support * Out of scope for today’s discussion 3
What types of direct financing are available? • ‘Innovative’ SMEs and Mid -Caps up to 3,000 InnovFin / FTEs • Includes changes in business model to EFSI* for Circular Economy Mid-Caps • Amounts typically between EUR 7.5m-25m EFSI / • ‘ Eligible Project’ review Regular EIB • Amounts typically over EUR 25m but can be several hundreds loan EIB finances max. 50% of “sound” projects, also having elevated risk for InnovFin / EFSI. * European Fund for Strategic Investments European Investment Bank Group 4
When are project investment considered sound? Scope of due diligence process 1. Who and what : Management team and core activities 2. Profitability levels : Stable cash flows, reliable customer portfolio 3. Growth potential : Market dynamics, concept scalability/ replicability 4. Differentiation : Why your product/ service and not competing solutions 5. Pricing models: Your concept’s value proposition and price points 6. Supply chain: Who are your partners and collaboration structures 7. Working capital needs and operating costs 8. Technical risks and management of Intellectual Property 9. Environmental impact and regulatory framework 10.Sources of funds and debt exposure Eligible projects are appraised for societal, ecological and economical impact. European Investment Bank Group 5
Why clients work with EIB on CE projects? Project System ‘Upcycling’ Tyre ‘Upcycling’ Candidates ‘Upcycling’ of carbon black, oil and Context Large scale industrial vehicle ‘upcycling’ installation. gas from waste tyres. • • Key 43% parts recuperated Net energy positive producing • ecological 48% recycled ca. 2MW and 1 ton of oil per ton • benefits 80% reduction in energy, carbon black • ‘Negative’ CO2 footprint water and chemical • resources vs. original 80% reduction in air pollution manufactured parts vs. legacy furnace process Scale Upcycled per year Upcycled per year (per plant) • • 30k engines 45k ton ELT* • • 20k gearboxes ca. 12 kton oil, 9 kton gas, 9 • 16k fuel injectors kton steel recovered • 15k ton carbon black Longer tenure, diversification of funds and positive reputational aspects. * End of Life Tyres European Investment Bank Group 6
Where to get EIB support for CE projects? www.eib.org EIB contacts Radoslaw Ossowski-Barbetti Head of EIB Group office Slovakia Tel.: (+352) 4379 89112 email: r.ossowski@eib.org Nathalie Binet Loan Officer Operations Directorate Tel.: (+352) 4379 86238 email: n.binet@eib.org Darragh Mac Neill Innovative Industries Division Projects Directorate Tel.: (+352) 4379 82773 email: d.macneill@eib.org http://www.eib.org/products/helpingyouinnovate/tool/index.html European Investment Bank Group 7 08/11/2017
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