1. European Investment Bank
EIB Activity in ACP
EU-AFRICA ECONOMIC AND SOCIAL STAKEHOLDERS’ NETWORK
SIXTH MEETING
Brussels, Thursday 4th July 2019
European Investment Bank

2. European Investment Bank
The EIB: the EU bank
Natural financing partner for the EU institutions since 1958
Around 90% of lending is within the EU
Shareholders: 28 EU Member States
Natural financing partner for the EU institutions since 1958
Around 90% of lending is within the EU/ 10% outside the EU
Shareholders: 28 EU Member States
European Investment Bank

3. 70. 2bn 7.91bn 10% of activity Outside the EU 2017 Signatures
EFTA & Enlargement Countries
EUR 1.62bn
Eastern Neighbours
EUR 0.88bn
Africa, Caribbean, Pacific, South Africa
EUR 1.47bn
Asia and Latin America
EUR 1.99bn
Mediterranean
EUR 1.96bn
European Union
70. 2bn
Outside EU
7.91bn
EUR
EUR
Total EUR 78.2bn
European Investment Bank Group

4. How we operate – direct and intermediate lending
Wholesale Bank
SMEs
Infrastructure projects,
Large corporates
Direct lending
Intermediated facilities
(MBILs)
Water
Roads,
Power station etc.
Lines of credit
Guarantees
Technical assistance
20/08/2019
European Investment Bank Group

5. Financial intermediary
How do MBILs work?
Financial intermediary
On-lending with transfer of EIB financial advantage
Loan
Final beneficiaries
Allocation reporting (for EIB loan amount)
EIB loan to a financial intermediary for on-lending to small- scale projects by multiple beneficiaries such as SMEs
On-lending decisions remain with the intermediary institution, which also retains the financial risk of the on-lending
EIB collects information on final beneficiaries as ‘allocations’ but has no contractual relationship with them
Nomenclature
Financial intermediary: usually a commercial bank which has a wide range of business, to ensure that EIB loan is reflected in lending to the real economy (and not just government T-bills)
Final beneficiary: eligible business as defined in the financial contract package between EIB and the financial intermediary; within EIB’s eligibility rules, the specific focus is therefore decided for each new EIB loan
Allocation: information on final beneficiary sent by intermediary to EIB; note that EIB has no contractual relationship with the final beneficiary, and therefore no direct contractual rights
On-lending: intermediary bank is required to lend at least twice as much as the EIB loan, either to the individual allocated final beneficiaries, or to other businesses

6. European Investment Bank
Keys sectors
Innovation
Environment
Infrastructure
SMEs
EUR 13,5 Bn
EUR 15,2 Bn
EUR 12,3 Bn
EUR 23,3 Bn
European Investment Bank

7. Operations outside EU: 2 mandates
External Lending Mandate
Cotonou Mandate
European Investment Bank

8. EIB in ACP: our priorities
Support for SDGs
Climate Action
Resilience
Gender: protect, impact, invest
Sustainable economic development
Private sector development
Vital Infrastructure
Support to small and medium enterprises and midcaps
Support to corporates
Project Finance
Agriculture, digital economy, health, education
Financial sector capacity
Credit lines
Investment in microfinance
Investment in equity funds
Boosting skills
Water, sanitation, energy, transport, ICT, urban development
The foundations for sustainable development
Public and Private Partnerships
European Economic Diplomacy
European Investment Bank

9. EIB activities outside the EU
Contribute to the implementation of the EU’s external policies
Account for a 27% of total EU Official Development Assistance (ODA)
Aligned with the EU Global Strategy, the New Consensus for Development and the UN 2030 Agenda for Sustainable Development (Sustainable Development Goals)
Adapt quickly and incorporate the EU and Member States’ priorities:
Sustainable Energy and Climate Action
Inclusive, sustainable economic growth and job creation
Women and youth empowerment
Key development drivers, including: agriculture, value-chains, digitalisation, industrialisation, urban development
Migration/forced displacement
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 7

10. Our projects in the ACP countries since 2003
European Investment Bank

11. Total investments supported in ACP 2013 - 2018
ACP key results in 2018 (1)
€ 40bn
€ 6bn
EIB lending in ACP
Total investments supported in ACP
Signatures at an all-time high with EUR 1.57bn
Record level for Investment Facility EUR 813m
Broad range of products: senior debt, equity to local currency lending, technical assistance, interest subsidies and other blended finance 11

12. ACP key results in 2018 (2) Sectors: Geographical split:
European Investment Bank 12

13. Impact-led approach JOBS 247,000 jobs sustained in smaller businesses
Financing projects that make a lasting difference – measuring our impact on the ground
Ex-ante Results Measurements Framework (ReM)
Ex-post monitoring and evaluation
Projects signed in 2018 outside the EU are set to support (1) :
JOBS 247,000 jobs sustained in smaller businesses
ENERGY 30 million households powered
WATER 12 million people benefiting from clean water and sanitation
CONNECTIVITY 2.8 million new mobile internet users
(1) Expected impact of operations outside the EU signed in 2018, provisional figures from the Results Measurement Framework (ReM) 13

14. EIB Products LENDING BLENDING ADVISING Loans Guarantees Equity
Combine EIB finance with third party concessional funds to improve affordability and fund projects of higher risk profile to support innovation.
Sector studies
Project Preparation & Implementation
PPPs
Mobilising finance for long-term growth
La BEI accompagne ses financements de subventions d’investissement et d’assistance technique pour améliorer la qualité des projets.
La plupart des projets du secteur public dans les régions bénéficient des dons des facilités d’investissement de la Commission qui rendent les financements concessionnels. Les activités de capital risques sont financées sur fonds de l’UE ou des états membres (ex: impact financing enveloppe (IFE) dans les ACP. Des montages financiers plus complexes permettent à la BEI de financer des projets plus risqués grâce à un système de partage de risques avec la commission (garanties de portefeuilles, absorption des premières pertes…)
L’assistance technique est également une dimension importante des financements BEI à l’extérieur de l’UE en préparation des projets ou en appui à la mise en œuvre des projets. Des initiatives sectorielles ont été récemment mise en place pour la préparation des projets dans les transports, l’environnement et les PPPs (MED 5P).
European Investment Bank 14

15. Eligibility criteria EU External Policy Goals Technically sound
Economically sustainable
Financially viable
Environmentally sound
Socially acceptable
Procured openly
Technical soundness, risks and mitigation measures, capacity for products/services
Promoter capability to implement, operate and maintain project
Timing, employment, operating and maintenance costs, comparison with costs of similar projects
Compliance with applicable legislation, EIB procurement guidelines, social and environmental standards
Analysis of market and demand
Economic and financial profitability (e.g. rate of return)
European Investment Bank

16. European Investment Bank
Benefits of an EIB loan
Benefits of low cost funding (AAA- rating) passed on to clients
Large amounts (typically > EUR 25m)
Broad range of currencies
Long maturities
Attractive interest rates
Catalytic effect on participation of other banking or financial partners
Access to blending instruments
European Investment Bank

17. 2018 project highlights
Better digital services for 9 million people in DRC and Uganda
Support Private Sector in Micronesia
Supporting solar projects, including off-grid solutions in rural areas
Helping Caribbean and Pacific
businesses face adversity
European Investment Bank 17

18. New Product: Africa Health Diagnostics Platform (AHDP)
A strategic partnership between EIB and the Bill & Melinda Gates Foundation, under the European External Investment Plan (EIP)
An initiative targeting the improvement of lab diagnostic services for low income populations in sub-Saharan Africa through the creation of public private partnerships (PPPs)
Crowding-in private sector investment in international standard laboratory facilities that will provide timely, cost-effective and accurate diagnostic services for diseases such as HIV, malaria, TB.
Comprehensive package of support addressing key issue impacting health outcomes in Africa

19. The AHDP – Current status
Countries
The project is most advanced in Ghana, Ethiopia and Rwanda
Other countries to follow shortly include Kenya and Senegal
Technical Assistance
Provided by Bill and Melissa Gates Foundation and the EU
Financing – a toolbox to use depending on what is needed
Possible loans to the public sector
Possible payment guarantees
Possible loans to the private sector (guaranteed under the EIP)

20. European Investment Bank
Thank you!
Christian ELIAS
INFORMATION
European Investment Bank