1. 1 European Investment Bank Africa EU Workshop, Addis Ababa, 6 October 2009 Accessing EIB Resources EUROPEAN INVESTMENT BANK

2. 2 European Investment Bank I.Overview of EIB terms and conditions II.EIB and Africa III.Looking ahead

3. 3 European Investment Bank I. Overview of EIB Terms and Conditions

4. 4 European Investment Bank Eligible projects EIB finances bankable/revenue generating projects  Greenfield developments, expansions, rehabilitations, feasibility studies or acquisition of assets generating economic benefits;  Sustainable projects i.e. technically sound, financially viable, with an acceptable economic return, compliant with environment protection, procurement regulations and prevailing social legislation and norms

5. 5 European Investment Bank Who can benefit ?  Private entrepreneurs and commercially-run public sector enterprises  Investment funds & other financial intermediaries  Local and international entrepreneurs  The whole spectrum of enterprises (large, SME and micro, either directly or indirectly)

6. 6 European Investment Bank THE PROJECT CYCLE AT THE EIB

7. 7 European Investment Bank Financial instruments Local currencies (stable macro- economic environment) Junior of subordinated debt Quasi-equity (participating, conditional or convertible loans) Equity (direct and indirect) Guarantees Security package function of the instrument (unsecured, project security, charge on assets, covenants..) Senior debt denominated in EUR and widely traded currencies 1 st class guarantee or prime-quality security usually required (unless sovereign risk) Flexible / risk-bearing financial instruments (*) (*) Availability may vary according to mandate

8. 8 European Investment Bank EIB added value  Environmental and social impact measure added-value of projects from an economical, environmental, social and governance perspective (Environmental and Social Impact Assessment Framework - ESIAF)  Complementarities with operations/ instruments of EU, bilateral or multilateral institutions Illustrations: - the EU-Africa Infrastructure Trust Fund - the Neighbourhood Investment Facility  Acts as a catalyst in mobilising local resources and encouraging foreign lending and investment (EIB financing ≤ 50 % of project cost)

9. 9 European Investment Bank Terms and conditions Subsidies are available: -to ensure concessionality whenever required and in line with applicable mandate EIB operates on market related terms: rates are based on EIB reference rate (AAA rating), including administrative margin + Risk pricing margin Fixed or variable rates Principle of cost recovery – appraisal, due diligence and commitment fees can apply Long maturities and grace periods Direct or indirect intervention