the european investment bank in israel il.pdf · portfolio 2007 - 2016 eur 14.6bn. 14 eib in israel...
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The European Investment Bank in Israel
Tel AvivJuly 2018
18/07/20181
Capital breakdown
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3
The EIB: the EU bank
Largest multilateral lender and
borrower in the world
Shareholders: 28 EU Member States
HQ in Luxembourg with 40 local
offices
Around 3000 staff (finance
professionals, but also engineers,
sector economists and socio-
environmental experts)
Around 450 projects each year in
over 160 countries
AAA-rated by the three major rating
agencies
EIB Offices in the European Union
18/07/2018European Investment Bank 4
EIB Offices outside the EU
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Raising money on the capital markets
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Europe
Asia
Middle East and Africa
Americas
66%
21%12%
56.4bn
1%
EUR
in 2017
Scale of bond issuance – largest supranational bank
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0
50
100
150
200
250
300
Italy France UK** Germany Spain EIB Netherlands Belgium Austria Portugal Finland
2017
2018 (e)
EU
R b
n
… and compares with that
of certain EU governments
* Fiscal years from 1 July to 30 June
** Gross financing requirement for FY2016-17 / 2017-18
Source: Barclays research/ best efforts estimates as of 19 January 2018
Data collated from a mixture of official reports and bond market analysis systems such as Dealogic
0
20
40
60
80
EIB IBRD -WorldBank*
ADB IADB IFC* NIB AfDB EBRD
2017
2018 (e)Volume of issuance is larger
than all other supranational
banks…
EU
R b
n
EIB Group financing in 2017: EUR 78.16bn
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SignaturesEFTA &
Enlargement Countries
EUR 1.62bn
Eastern Neighbours
EUR
0.88bn
Africa, Caribbean,
Pacific, South Africa
EUR 1.47bn
Asia, Central and Latin America
EUR 1.99bnMediterranean
EUR 1.96bn
European Union
70.24bn
Outside EU
7.91bn
EUREUR
Total EUR 78.16bn
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Our Priorities in 2017
SMEsInfrastructureEnvironment Innovation
EUR
16.7bn
EUR
18bn
EUR
13.8bn
EUR
29.6bn
We deliver impact where it is needed
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JOBS3.9m jobs in small
businesses
HEALTH45.7m people with access to improved
health services
EDUCATION1.1m students
benefiting from EIB-financed projects
WATER23m people
benefiting from safer drinking water
TRANSPORT735m additional
passengers
ENERGY10.4m households
powered by EIB projects
URBAN572 000 households
in social and affordable housing
DIGITAL7.44m people with new or upgraded
connections
Climate finance pioneer
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EUR 19bn
for climate in 2017
USD100bn
2016-2020
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Mandates
External lending mandate: Latin America and
Asia
External lending mandate:
Latin America and Asia
Cotonou mandate: Africa,
Caribbean & Pacific
Cotonou mandate: Africa,
Caribbean & Pacific
External lending mandate:
Neighbourhood and
Partnership countries
External lending mandate:
Neighbourhood and
Partnership countries
External lending mandate:
Pre-accession countries
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39 43
6
66
107 121 113
297
0
50
100
150
200
250
300
350
Algeria Syrian ArabRepublic
Egypt Gaza WestBanK
Jordan Morocco Israel Lebanon Tunisia
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EIB in 2015:
EUR 77.5bn
EIB Signed LoansEIB Investment per Capita in Southern Neighbourhood
EIB Investment per Sectors in Southern Neighbourhood
Loans to SMEs, 16%
Transport, 22%
Energy, 30%
Environment, 14%
Other, 17%
Southern NeighbourhoodPortfolio2007 - 2016
EUR 14.6bn
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EIB in Israel
Infrastructure and Industry
Supporting Israel’s infrastructure and industrial
modernisation
R&D
Providing financing to stimulate
Israeli research and development
Climate actionProviding support to
investment funds which foster the economic development of
the country
EIB in Israel (continued)
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Enabling private sector development, climate action and R&D
1%
18%
41%
40%
0%
R&D,18%
Others,1%
RE & EE,40%
Water and wastewater,
41%
Projects
EIB in Israel – examples
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Ashalim Plots 1 & 2
Total amount: EUR 291.1 million
.
Hadera , Sorek and Ashdod Desalination Plants
Total amount: EUR 407.2 million
Reduced greenhouse emissions in comparison with aconventional power plant
First application in Israel of an innovative technology
Support for European FDI
Long terms loans with maturities of up to 23 years
Desalination is the best supply-side solution to the Israeli water needs
The combined capacity of the three plants is 350 million m3/year
Long term loans with maturities of up to 25 years
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EIB Financial Products offered in Israel
SMEs + microfinance
MidCap enterprises
Large corporates
SPVs & project finance
Direct loans
Loans to corporates intermediated by a bank
Guaranteed loans
Guarantees
Microfinance credit lines to local banks
SME and MidCap credit lines to local banks
Portfolio guarantees provided by the EIB to a local bank (in specific cases)
Equity investments mostly through Private Equity funds
Public Sector
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EIB Financial Products offered in Israel
SMEs + microfinance
MidCap enterprises
Large corporates
SPVs & project finance
Direct loans
Loans intermediated by a bank
Guaranteed loans
Guarantees
Microfinance credit lines to local banks
SME and MidCap credit lines to local banks
Portfolio guarantees provided by the EIB to a local bank (in specific cases)
Equity investments mostly through Private Equity funds
Public Sector
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Loans for Corporates Structures
Direct loan to promoter
Borrower
Loan guaranteed by a bank
Export Credit Agency(s)/Commercial Bank(s)/
Promoter’s Group
Borrower
Loan intermediated by a bank
Borrower
Commercial Bank(s)
The EIB finances the local promoter
directly.
Loan
Loan
The EIB lends to a bank, which in
turn lends the funds to the end
customer. The commercial bank
must pass on part of the funding
advantage.
Loan
The EIB lends the funds directly to
the promoter and receives a
guarantee from a commercial bank
or (a) company(ies) belonging to
the promoter’s group.
Loan
Guarantee
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Loans for Corporates Advantages
Certification of a project's quality.Signaling Effect
Long maturities, up to 10/12 years for a corporate loan (depending on the economic life of the project) + grace
period on capital repayments (typically covering the implementation period).Maturities
EIB sector and product expertise acquired over 50 years of activity in and outside of Europe; in-house
engineers and socio-environmental reports.Expertise
Competitive interest rates (EIB's AAA funding advantage and not-for-profit institution).Pricing
Long-term partner with an objective to support sustainable economic development.Long-term
Possibility of blending: combination of EIB financing, EU grants and/or other donor resources.Blending
Possibility of political risk carve-outs on guarantees provided by commercial banks.Political Risk Carve-Outs
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EIB project cycle
EIBproject cycle
Step 1 Proposal
Step 2 Appraisal
Step 3 Approval
Step 4Signature
Step 5Disbursement
Step 6 Monitoring
and reporting
Step 7 Repayment
• Financial• Economic• Social• Environmental• Technical
assessment
• EIB Management Committee
• EIB Board of Directors
Finance contract is signed
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Eligibility criteria for obtaining EIB financing
Eligibility
be eligible under the mandate objectives for that particular country/region where the project is located
be technically sound
be financially viable
show and acceptable economic return
comply with the principles and standards adopted by the EIB in the social and environmental fields, and the EIB
procurement guidelines (available on the EIB website)
The borrower's solvency must be acceptable.Solvency
Manufacturing and distribution of arms, munitions and military equipment, tobacco manufacturing and
distribution, gambling, detention infrastructure as well as sectors that are ethically compromised and
considered to present a significant reputational risk.
Excluded Sectors
EIB finances up to 50% of project costs with a minimum EIB loan size of about EUR 15M or equivalent (smaller
loans on an exceptional basis)Financing
The project must
Development of the local private sector, in particular SMEs
Development of social and economic infrastructure
Climate change adaptation and mitigation
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Contacts
Stefan Acsinte
Loan OfficerLending Operations in EU Neighbouring Countries, Corporates
Phone: (+352) 4379-84307
email: [email protected]
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg.
Nathalie Climence
Head of DivisionLending Operations in EU Neighbouring Countries, Corporates
Phone: (+352) 4379-86709
email: [email protected]
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg.
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