1. Risk Sharing Finance Facility (RSFF)
EIB instruments for local and regional authorities / EIB and the EU 2020 Strategy
Risk Sharing Finance Facility (RSFF)
Marc D’hooge
DG Regio Open Days, Brussels, 6 October 2010

2. Low/Sub Investment Grade DG Regio Open Days, Brussels, 6 October 2010
A brief reminder … RSFF : a EUR 10 bn Risk Sharing Finance Facility
EIB RSFF funds complement other sources of debt capital available for low/sub investment grade RDI intensive entities
EIB RSFF funds are well suited to potential beneficiaries because:
Share risk on highly attractive terms & conditions (EIB’s costs and not-for-profit risk pricing)
Long maturities of up to 10 years with longer for Research Infrastructure
Direct EIB participation of up to EUR 300m per transaction (depending on loan grading)
Strong technology/industry expertise
Signalling Effect: EIB as a quality stamp
Debt and Mezzanine Debt Product
Own Resources
EUR 1bn
EUR 1bn
EIB (RSFF)
Approx. EUR 10bn
Debt Financing
Banks
Investors
Final Beneficiaries
Low/Sub Investment Grade
DG Regio Open Days, Brussels, 6 October 2010

3. European Investment Bank EIB & EIF in support of the entire RDI value chain1
Risk Capital 2
CIP Resources (SME) 3
RSFF (SME / MidCap) 4
Investment Loans
Facility: High Growth Innovative SME Scheme (GIF), Ecotech
Purpose: IP financing, technology transfer, seed financing, investment readiness
Target Group: VC Funds, Business Angels
EIF Product: Fund-of- Funds
CIP Guarantee schemes
Growth financing for SMEs
Formal VC Funds, CLOs
SME guarantees (loans, microcredit, equity/mezzanine, securitisation
FP7 RSFF
RDI financing
SMEs/MidCaps, Banks, PE Investors (sub- investment grade)
Loans (incl. Mezzanine), Funded Risk Sharing Facilities with Banks (Investors)
FP7 RSFF
Investment Loans
RDI financing
MidCaps/Large Corporates/Public Sector Entities (investment grade)
Loans, Guarantees
Bank Loans and Guarantees
Formal VC Funds
Seed/Early Stage VC Funds
Business Angels
Entrepreneur, friends, family
EIF EIB
Seed / Start-Up Phase
Emerging Growth Phase
Development Phase
Later Stage
Counterparts
DG Regio Open Days, Brussels, 6 October 2010

4. Risk Sharing Finance Facility Results 2007 – To Date
Target 2,145
RSFF Loan amount (in EURm) and number of RSFF Operations Approved/Signed/Disbursed
2010 RSFF Signature Target: EUR 2,145m (37% achieved to date)
DG Regio Open Days, Brussels, 6 October 2010

5. RSFF Signatures to end September 2010 Breakdown by Sector and Country
Signed RSFF Projects by Sector
Signed RSFF Projects by Country
Main sectors financed so far :life science engineering industry and renewable energy technologies.
By end September 2010 operations signed in 20 countries.
DG Regio Open Days, Brussels, 6 October 2010

6. Effectiveness Target group distribution
DG Regio Open Days, Brussels, 6 October 2010

7. DG Regio Open Days, Brussels, 6 October 2010
Risk Sharing Finance Facility – Europe 2020
Mid Term Review
Main Conclusions, Prospects and Next Steps
The first phase of RSFF ( ) has now been successfully implemented and exceeds initial targets.
Loans amounting to EUR 7.1bn (71% of total RSFF Facility) have been approved for projects in 21 countries and loans of EUR 4.6bn (46% of total RSFF Facility) have been signed for projects in 20 countries
RSFF business pipeline of EUR bn in prospect for each of the years from 2010 to 2013.
Subject to the decisions of Parliament and Council on the results of the current Mid-Term Review and the related decisions of EIB, the second phase will be characterised by:
A selective deepening and widening of RSFF.
Development of new RSFF products by EIB in collaboration with EC.
DG Regio Open Days, Brussels, 6 October 2010

8. DG Regio Open Days, Brussels, 6 October 2010
Risk Sharing Finance Facility – The “Regions” Angle The need for new regional smart knowledge policies
Need to address competitiveness gaps across EU MS and regions, particularly for those countries confronted with large public deficits (which usually puts pressure on RDI expenditure)
Need to recognise the under-exploited opportunities for smart, local knowledge specialisation. No « one size fits all » scheme, but tailored RDI investment strategies
Need for EU wide scheme that strengthens links between high regional performers in research, innovation and entrepreneurship, and promote the evolution of regional specialisation based on the growth of young innovative firms, based on diversity
Make the provision of structural funds for RDI conditional upon delivery of a local, smart and open specialisation strategy.
DG Regio Open Days, Brussels, 6 October 2010

9. DG Regio Open Days, Brussels, 6 October 2010
A Risk Sharing Finance Facility for “Regions” Some constructive thoughts
Both DG REGIO and MS are committed to expansion of use of revolving and other structured instruments in the next programming period. Question mark: soft incentives or some form of compulsion ??
Make the RSFF EC Contribution a revolving mechanism, and increase it substantially for its post-2013 phase, for instance also with a contribution from Structural Funds for well-designed local, smart and open specialisation strategies
In the light of the EU 2020 objectives for sustainable development, use RSFF as additional debt source for grant funding at Community level, to add a specific economic prioritisation – mid- to long-term income generation capacity – as a key to unlocking growth and competitiveness potential
DG Regio Open Days, Brussels, 6 October 2010

10. DG Regio Open Days, Brussels, 6 October 2010
A Risk Sharing Finance Facility for “Regions” Some constructive thoughts
Establishment of RSFF Facility dedicated to Cohesion and Convergence Regions. Scale up of programme requires a higher share of EC risk coverage than in current programme. Possible pilot programme in
Based on experience with existing programmes (e.g. JEREMIE), development of new forms of public-private Risk Sharing Financial Facilities to meet RDI needs in regional development areas, also for Research Infrastructures projects, blending Structural Funds and risk based financing resources from EIB and other investors or intermediaries
DG Regio Open Days, Brussels, 6 October 2010

11. European Investment Bank Contact Details
Marc D’hooge
RSFF Programme Manager
Phone: (+352)
Fax: (+352)
European Investment Bank
100, boulevard Konrad Adenauer
L-2950 Luxembourg
DG Regio Open Days, Brussels, 6 October 2010