1. Peter Bandilla, Deputy Adviser, Lending in Central Europe
European Investment Bank (EIB): Cooperation with local banks to support SME and Mid-Cap investments
1st Danube Financing Dialogue - EU Strategy for the Danube Region (EUSDR) Priority Area 10
Vienna, 22nd March 2012
Peter Bandilla, Deputy Adviser, Lending in Central Europe

2. European Investment Bank
Introduction on EIB
EU’s long-term lending bank set up in 1958 by the Treaty of Rome
Shareholders: 27 EU Member States
Funding on capital markets: (EUR 76 Bn in 2011)
Financial strength: AAA-Rating, voluntary application of Basle rules
Business model: “non-profit but also no loss”
Lending policy: Anti-cyclical in times of financial crisis
European Investment Bank

3. EIB Lending in 2011 and Shareholdership
European Investment Bank

4. EIB Priority Objectives (within the EU)
Convergence
Trans-European Networks (TENs)
Environmental sustainability
Sustainable, competitive and secure energy
Knowledge Economy
Small and medium-sized enterprises (SMEs) and mid-cap enterprises (midcaps)
EIB loans for SMEs of EUR 10.5bn in Europe in 2011: Industry, Energy and transport and Services including tourism
European Investment Bank

5. European Investment Bank
EIB Loan for SMEs
European Investment Bank 5

6. European Investment Bank
Definition of “EIB Loan for SMEs and Mid-Caps”
SME final beneficiaries: any autonomous enterprise or group employing < 250 people
MID-CAP final beneficiaries: any autonomous enterprise or group employing < 3000 people
Investment to be financed: most investment projects costing up to EUR25 million (limited list of excluded sectors)
Financing: up to 100% of project cost or EUR 12.5 million, whichever is smaller
Term: up to economic life of project (2 years minimum, 12 years maximum)
Project cost can include: used assets, distribution networks and international expansion, long term working capital needs, SME transmission (generation change, staff buy-in; up to EUR 1 million)
European Investment Bank

7. How do SMEs and Mid-Caps benefit?
Enhancing market capacity - intermediary undertakes to lend at least twice EIB Loan for SMEs and Mid-Caps( “2 x EIB” approach)
Transparency - intermediaries must inform SMEs and Mid-Caps of EIB’s presence and impact on their financing conditions:
can be done through ‘product labelling’ or direct communication
information on website
Transfer of value added - commitment by intermediaries to pass on an agreed financial advantage to the SMEs and Mid-Caps:
amount and method of transfer negotiated on a case by case basis – eg interest rate reduction, cashback at signature
reporting of method and amount of benefit transferred
Accountability - speed of allocation to SMEs and amount of benefit transferred seen as key ‘performance indicators’ by EIB
European Investment Bank

8. European Investment Bank
EIB Global Loan Allocations in the Danube Region
EUR 6.3 bn between for 16,457 individual allocations (average
allocation size of EUR 385,315)
2011 was a record year with EUR 2.1 bn allocations (# 6,468)
European Investment Bank 8

9. European Investment Bank
EIB Global Loan Partners in the Danube Region
European Investment Bank 9

10. European Investment Bank
EIB Global Loan Partners in the Danube Region
European Investment Bank 10

11. http://www.bei.org/ info@eib.org
For more information