eib's external lending activity
TRANSCRIPT
17 January 2017Luxembourg
EIB’s External Lending Activity
Maria Shaw-Barragan Lending Operations DirectorateEuropean Investment Bank
European Investment Bank
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EIB: the bank of the European Union
European Investment Bank
Established in 1958 by the Treaty of Rome. The shareholders of the Bank are the EU's Member States.
The largest multilateral lender and borrower in the world (Balance sheet total of EUR 571bn in 2015).
The Bank raises its resources by borrowing on the capital markets.
It passes on its favorable borrowing terms (thanks to its AAA rating) to its customers.
Some 440 projects are financed each year, in over 160 countries, with a EUR 78bn in new loans signed in 2015.
The EIB's headquarters are in Luxembourg supported by 41 local offices worldwide.
The Bank has over 2900 financial specialists, engineers, sector economists and social and environmental experts.
The EIB is the EU's bank for long-term lending operations. The EIB's remit is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1963, the EIB has also carried out operations outside the EU in support of the EU’s external policies.
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EIB activity outside the European Union
European Investment Bank
Outside the EU, the EIB:
Operating in all EU Member States and in more than 140 countries, the EIB offers a vast experience over a wide range of industries, enabling financing for both public sector and private sector projects
The Bank supports projects contributing to the economic development of countries that have signed an association or cooperation agreement with the EU
EIB lending outside the EU accounts for about 10% of its global activity (approx. EUR 8bn)
Supports:Development of the local private sector, including
SMEs
Upgrading of socio-economic infrastructure
Tackling the effects of climate change
Regional integration
Environmental sustainability
EU Foreign Direct Investment (FDI)
Provides:Loan
Grants
Guarantees
Equity Products
Innovative financial products
Technical Assistance
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Benchmark against different IFIs
European Investment Bank
EIB is the world’s largest multilateral lender and one of the world’s largest development banks
The EIB uses a range of mandates and instruments in different regions in order to maximize impact while preserving its balance sheet and AAA rating
EIB is the world’s largest multilateral provider of climate finance
2015 approvals by region of different IFIs (in USD billion)
Climate finance by IFIs: signatures in 2015 (USD bn)
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EIB’s activity outside the EU is directly contributing to the implementation of the EU’s external policies and standards around the world
Aligned with the EU Global Strategy, the New Consensus for Development and the UN 2030 Agenda for Sustainable Development (Sustainable Development Goals).
In addition to delivery on the various mandates’ objectives, the EIB adapts to and incorporates the EU and Member States’ priorities:
Activity Outside the EU – Goals
European Investment Bank
Migration/forced displacement, addressing its root causes
Response to the 2030 Agenda and to the Sustainable Development Goals
Sustainable Energy and Climate Action
Inclusive, sustainable economic growth and job creation and support
Key development drivers, including: agriculture, value-chains, digitalisation, industrialisation, urban development
Women and youth as key actors in economic growth
Private sector support and access to finance
Infrastructure as enabler for private sector investment
Regional Integration
Combining a focus on the poorer states (including fragile states) with innovative partnerships with middle income countries
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EU Mandates Outside the EU
European Investment Bank
Pre-AccessionMediterraneanEastAsia, Central Asia, Latin America (ALA)
Africa, Caribbean & Pacific (ACP)
External Lending Mandate
Cotonu Agreement
Neighborhood
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Sources of funding for operations outside the EU
European Investment Bank
• 65% FLP guarantee for sovereign and political risk
• Comprehensive guarantee by the EU Member States
EIB Own Resources lending
Guarantee
EIB Own Resources lending
Investment Facility
Climate Action & Environment Facility
Special Projects Facility
Neighbourhood, Pre-Accession & EFTA Facilities
Funding source Neighbour-hood
Africa, Caribbean,
Pacific
Latin America,
Asia, RSA
Pre-Accession /
EFTA
1. External Lending Mandate
3. EIB Own Risk
Facilities
2. Cotonou Mandate
• None: EIB off-balance sheet revolving fund
• None
• None
• None
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EIB activity outside the European Union (cont’d)
European Investment Bank
2016 Signatures* – EUR 74.9bn
European Union: EUR 67bn
Enlargement Countries and EFTA: EUR 2.9bn
Eastern Neighborhood: EUR 1.6bn
Mediterranean Countries: EUR 1.5bn
Asia and Latin America: EUR 984m
Africa, Caribbean and Pacific: EUR 765m
*Disclaimer: These figures are preliminary, unaudited and not yet published.
9European Investment Bank
Private - public split of EIB signatures 2014-16 (EUR m)
Over 50% of EIB lending activity outside the EU targets private sector final beneficiaries
EIB – Supporting EU objectives across the globe
EIB signatures by region and mandate, 2014-16 (in EUR million)
10European Investment Bank
Supporting local private sector development
Developing social and economic infrastructure
Climate action
ReM reporting – 2015 EIB activity
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