1. EIB DUE DILIGENCE PROCES
Financial opportunities & legislative barriers for the Circular Economy
DG Growth, 21 March Liesbet Goovaerts & Jonas Byström, EIB
01/07/2019
European Investment Bank Group

2. EIB project cycle We support sound and sustainable projects 01/07/2019
European Investment Bank Group

3. EIB project cycle We support sound and sustainable projects 01/07/2019
European Investment Bank Group

4. European Investment Bank Group
Identification- 1
First check:
eligibility criteria
quality and soundness
based on business plan and if possible feasibility study
01/07/2019
European Investment Bank Group

5. European Investment Bank Group
Identification - 2
First check: eligibility criteria
lending priorities
01/07/2019
European Investment Bank Group

6. European Investment Bank Group
Identification - 3
First check: quality and soundness
viability assessment based on first documentation
project team and organisation
project drivers and rationale
benefits and impact
technological maturity and track record
supply chain and market uncertainties
scalability/replicability
permitting status, regulatory framework
financing plan
01/07/2019
European Investment Bank Group

7. European Investment Bank Group
Identification - 4
First check: quality and soundness
regulatory uncertainty
supply chain & market uncertainties
Regulatory framework needed:
bringing sectors/companies together
defining flows of materials into certain directions
influence price – e.g. tax incentives
01/07/2019
European Investment Bank Group

8. European Investment Bank Group
EIB project cycle
01/07/2019
European Investment Bank Group

9. European Investment Bank Group
Project Appraisal - 1
Questionnaire + site visit
better understanding of projects, main risks and mitigants
focus on:
business concept and expected results
market and business risks: e.g. material/feedstock input security / guarantees; off-take agreements; prices/revenues for outputs,..
commercial strategy: market position, entry market, customers approach, stand-out from the crowds,..
implementation and management: key work phases, timeline, expertise,..
competition: competing solutions, companies, IP rights,..
01/07/2019
European Investment Bank Group

10. European Investment Bank Group
Project Appraisal - 2
Technical soundness
technology robustness, maturity
scalability/replicability
Financial and economic justification:
cash flow projections, # scenarios to ascertain ability to repay or generate return on equity
Market
long-term cost/revenue predictions
supply chain uncertainties; contract in place?
market assessment: demand, competition, outlooks etc.
marketing plan, distribution channels
01/07/2019
European Investment Bank Group

11. European Investment Bank Group
Project Appraisal - 3
Environment and procurement
EIB’s strict environmental and procurement guidelines
environmental impact assessments, carbon footprint calculations
Credit assessment and structure of funding
building on technical and economic assessment
determine financing instruments and repayment structure given financial risk profile
01/07/2019
European Investment Bank Group

12. European Investment Bank Group
Eligible costs
Eligible R&D
Eligible Innovation
Opex: such as personnel costs, contract research, consumables, overheads;
Capex: such as facilities, equipment, acquisition of tangible & intangible assets -
if a prerequisite.
Non eligible: purchase of land, second hand equipment, existing  buildings, purchase of patents, Interests during constructions, works completed > 1year ago, and VAT
Prototypes & pilot plants;
First of a kind production lines
Investments in Advanced Manufacturing
Investments manufacturing capacity for innovative products and processes of SMEs and Mid-caps;
full-scale commercial production lines for Key Enabling Technologies (KETs)
01/07/2019
European Investment Bank Group

13. Example – innovative company
01/07/2019
European Investment Bank Group

14. European Investment Bank Group
Example – Novamont - 1
Novamont’s « Pitch »
Reconverting industrial sites Promoting Creation of bridges
circular economy
01/07/2019
European Investment Bank Group

15. European Investment Bank Group
Novamont - 2
Eligibility
Innovation and skills
Added-value: employment sustainability effect re-industrialisation
Quality and soundness
Market:
applications/substitution
competitors
EU regulations
Business
New business model
Agricultural feedstock sources
Technology
Experienced promoter
Positive outcomes previous experiences
01/07/2019
European Investment Bank Group

16. European Investment Bank Group
Novamont - 3
What made this project interesting?
innovative mid-cap company
riskier project: innovative project in an uncertain market
BUT, with Novamonts integrated approach
from sourcing to applications - including the whole chain
PLUS: experienced with successful demo
and industrial scale project
01/07/2019
European Investment Bank Group

17. Novamont contribution to CE showcase
Following slides prepared by Novamont
Novamont contribution to CE showcase

18. How Novamont perceived EIB’s due diligence process
Accurate and rigourous method of analysis, which takes into account not only the economic and financial parameters, but also the technical issues and the overall innovation strategy of the company
Positive dialogue in order to deeply understand the dynamics of the specific sector and the reasons underlying the company’s strategic choices
Demanding process, but clear timeframe and requirements and constant guidance

19. Why Novamont decided to work with the EIB
Interesting loan conditions and long term financing
The projects are not only validated as bankable: EIB evaluates also the compliance with technical, environmental and social parameters
Being recognised as a company whose projects make a significant contribution to growth and innovation in Europe

20. Novamont’s overall experience in working with the EIB
Very positive and instructive experience
Process and communication improvements within the company

21. 98-100, boulevard Konrad Adenauer
EIB contacts & Questions
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg
Liesbet Goovaerts
Innovative Industries Division
Projects Directorate
Tel.: (+352)
Jonas Byström
Urban Development Division
Projects Directorate
Phone: (+352)
01/07/2019
14/10/2015
European Investment Bank Group