BEYOND THE CYCLE TO INVEST FOR THE NEXT GENERATION Tanguy - PowerPoint PPT Presentation

BEYOND THE CYCLE TO INVEST FOR THE NEXT GENERATION Tanguy DESROUSSEAUX Head of Public Sector & Infrastructure Financing for France Western Europe Department European Investment Bank Paris, May 03, 2018 14/06/2018

I nvestment priorities perceived by EIB’s survey • Investment trends observed in the private & public sectors:  strong investments in the private sector into RDI & capacity expansion  reduced investments by local authorities due to budgetary constraints - pipeline for substantial infrastructure investments, especially for transport • Priority investments to overcome obstacles:  investment in further education & training to mitigate lack of qualified staff  insufficient public transport in growing urban areas & environmental imperative - digitalization of the economy underway, requiring investment in broadband infrastructure & modernization of equipment (both private & public sectors) • Specific investment objectives:  improve the performance of production tools via RDI investments  municipalities aim to invest more into education & healthcare - improve the energy efficiency of buildings (both private & public) 2

EIB response to current investment needs • Sustained level of lending in France with a focus education & innovation  Plan Campus & Programme Colleges Compétences et Emplois Jeunes  RDI financing for mid to large caps  Financing of broadband deployment by operators & local authorities • Special effort to support Climate Action or adaptation  Renewable energy (photovoltaic, windfarms, biogas,…)  Energy efficiency of buildings (housing, education, public buildings, infrastructure) • Enhance EFSI lending (Juncker Plan):  New, smaller & riskier counterparts  More flexible lending criteria  Risk-sharing with intermediaries 3

1. Education DEPARTEMENT OF SEINE SAINT DENIS – 240M€ Financing of a multi-annual investment programme in education for higher education . Plan Campus (2015-2018): 15 universities for a total lending volume of 1.3 Mrd € in support of investments totaling Programme Collèges Compétences & Emplois jeunes 3.3 Mrd € (2013-2017): 13 Départements for a total lending volume of 1.3 Mrd € in support of investments totaling 2.8 Mrd € 14/06/2018 4

2. Research, Development & Innovation ECOTITANIUM 30M€ LATECOERE First European facility for AEROSTRUCTURE RDI – 55 M€ recycling and remelting Product & process aviation grade titanium metal innovation related to doors, and alloys scrap optical networks, racks and cockpits, cabin infrastructure & video systems. The project also covers the construction of a new advanced manufacturing plant in Toulouse, France SUNPARTNER TECHNOLOGIES - 15 M€ The investment programme covers 2017-2020 and includes 2 manufacturing lines (150,000 m2 each), enhancing integrated photovoltaic (& smart) glass capacity. 14/06/2018 5

3. Broadband & telecommunications NORD PAS DE CALAIS THD – 184 M€ Design, roll-out & operation of a publicly owned fibre broadband network PIN (Public initiative network) covering areas not served by commercial operators in the ex-Nord-Pas-de-Calais Region. TELCO – 25 M€ Upgrade & expansion of a mobile networks (3G and 4G) in La Réunion & Mayotte, including IT system components, in order to reach 95% population within 5 years. 14/06/2018 6

4. Renewable energy SIAH WATER TREATMENT AND VALECO SUPPLY MANAGEMENT – RENEWABLE ENERGY 76 M€ 220 M€ Expansion & upgrade Construction and of a wastewater operation of a portfolio of 8 treatment plant, SOREGIES ENERGY including production of windfarms and 2 solar NETWORKS & biogas in Val d'Oise. RENEWABLE photovoltaic power plants GENERATION – 70 M€ total 181MW Refurbishment & extension of its gas & electricity networks, implementation of smart metering system & construction of new renewable capacity. 14/06/2018 7

5. Energy efficiency ROLAND GARROS AIRPORT ADESTIA EFFICACITE REUNION 100 M€ ENERGETIQUE LOGEMENT Development plan 2011-2022, with the SOCIAL common objective of alleviating 200 M€ current congestion & accommodating Réfurbishment (energy future growth in traffic, increasing efficiency) of 24 500 social climate resilience (flood protection) & housing units owned by 13 improving environmental and safety social housing operators (ESH) performance. 14/06/2018 8

EFSI in France • France is among the top 3 countries benefitting from EFSI, 2nd in terms of approvals after Italy • In 2017:  34 % of EIB’s activity in France benefit from EFSI  56 new operations approved totalling 4.7 Mrd€  mobilising approximately 18.4 Mrd€ of investments • Since the beginning of EFSI, 9.3 Mrd€, catalysing 42.3 Mrd€ of investments in France • Good cooperation with Secrétariat général pour l’investissement ( SGI) and promotional banks: Caisse des dépôts et consignations ( CDC ), Bpifrance and l’Agence française de développement ( AFD ). 14/06/2018 9

Implementation Status – EIB Group

EIB Loans under EFSI EFSI allows the EIB… BRT project Bulles, Pas de Calais • To lend to public entities without Clean bus rapid transit system guarantees by the responsible authority • Financing backs: - construction of Bus Rapid Transit System • To increase its support to infrastructure - new 41 hybrid & 6 hydrogen buses under Project Finance schemes with high - a state-of-the art traffic management & control market or construction risks (Wind parks, system • EFSI supported long-term financing ensures the transport or social PPPs) economic viability of the project • To lend to riskier counterparts (75% of EIB clients under EFSI in 2017 are new to EIB) • To offer longer term loans to cover for risky RDI investments EFSI Financing • To support smaller projects via riskier amount: intermediaries 110 M€ • To be subordinated to other investors, EFSI related facilitating the crowding-in of private investment: investors 225 M€

EIB risk-sharing under EFSI EFSI allows the EIB… Risk-sharing French Overseas Territory • To offer risk-sharing products, new to EIB, First EU/non-EU cross-border risk-sharing allowing taking risks on projects financed by the intermediary, not on the intermediary • A risk-sharing framework for • With full or partial delegation on the Agence Française de analysis of the projects Développement's financing of • Under linked (EIB risk is on the new investments in the French EU & non-EU overseas departments projects to be financed) or de-linked and territories. structure (EIB risk is on an existing • Targets sectors such as urban portfolio of projects, offering capital relief rehabilitation, environment, to the intermediary to finance new EFSI Financing information & communication amount: technology, tourism & projects) 180 M€ sustainable transport. • Can be offered to NPBs or to commercial • First projects: retirement home banks & tourist infra in French Guyana EFSI related investment: • Ensure crowding-in through the 1.2 Mrd€ intermediary and at final beneficiary 12 levels

EIB quasi-equity under EFSI EFSI allows the EIB… Ginkgo II Land decontamination Fund, France & Belgium • To support new Funds, with long term focus, or smaller Funds focusing on niche and riskier markets • To offer bigger tickets facilitating and EFSI Financing accelerating the financial closing of Funds amount: 30 M€ • To support Funds established in cooperation with regional authorities Equity (blending with ESIF) • To invest in Funds managed by NPBs • To co-invest in parallel with existing Funds “Banks won’t give a loan to decontaminate the • To offer loans with quasi-equity features land, and they won’t give a loan to buy polluted (deeply subordinated debt) to support land in the first place. You need equity to buy it fast growing companies and to carry out the project.” Bruno Farber, Managing Director of Ginkgo Advisor 13

More than just finance - investment support DEMAND Project promoters Public authorities Member States Private sector Access point Web content + Web portal + Support team European Investment Advisory Hub (EIAH) Existing advisory Additional advisory and EIAH’s partner programmes and activities technical assistance institutions’ expertise Delivery channels    Project support throughout the New investment support also Network of institutions incl. project cycle in areas relevant to the scope EIB Group, European of EFSI (could be delivered by Commission, National  Support to Financial EIB advisory or operational Promotional Banks etc. Instruments teams)   Integrated collaboration model Enhance access to finance  Identification of needs as they arise SUPPLY 14

Thank you! 15

Appendices 16

Financing opportunities for promoters/investors EFSI is demand driven , and will provide support for projects everywhere in the EU. There are no geographical nor sectoral quotas . Projects will be considered based on their individual merits. Eligible counterparts SMEs Utilities and (up to 250 Corporates public sector employees) or of all sizes entities midcaps (non-sovereign) (up to 3 000) National Dedicated Promotional Banks or other Investment banks for Platforms intermediation 17