1. Leadership and Management in Sustainable Development
European Summer School
Suor Orsola Benincasa University of Naples, 10th July, 2013
Promoting Sustainable Development
&
Supporting the Recovery
European Investment Bank
The European Investment Bank
Brian G. Field
Urban Planning and Development Adviser
The European Investment Bank

2. 2
Problems in financing infrastructure projects
Even where underlying investments are sound, in the post
crisis environment, projects can face difficulties in accessing
finance:
European Investment Bank
Heightened degree of risk aversion by commercial
banks
Deteriorating credit rating/debt ceilings
Difficulties for smaller private-sector providers to
access finance

3. 3
EIB – Supporting projects promoting EU objectives
EU’s financing arm, established by the Treaty of Rome in 1958
EIB’s shareholders are the 27 EU Member States
Promoting EU objectives
Providing long term loans to the private and public sector, in a
broad range of currencies
Total lending in 2011: EUR 60.9bn
Total lending in 2012: EUR 52.2bn
(EUR 79.1bn in 2009)
Large increase a consequence of the financial crisis
(after a specific mandate from ECOFIN)
European Investment Bank

4. 4European Investment Bank
Objectives and Instruments
(a response to the financial crisis)
Objectives
Broadening the financing base for
infrastructure investments
Increasing awareness and
deepening the financial sector
servicing such development
needs
Harmonising and coordinating
resources
Instruments
Medium to long-term senior loans
Subordinated loans
Letters of credit
Guarantees
Mezzanine debt instruments
Local debt securities
Equity
Technical Assistance support

5. 5
Funding strengths and value for customers
European Investment Bank
Funded mainly through bond issues on
international capital markets, exploiting strong
market positioning
Passing on funding advantage to loan customers
Not for profit (but also not for loss)
Large and frequent international bond
issuer…EUR 71.3bn issues in 2012

6. 6
Typical Funding Instruments
European Investment Bank
Investment Loans.
Framework Loans.
Global Loans.
Funds.

7. 7
EIB Signatures 2012 (in EUR)
European Investment Bank

8. 8
The Leipzig Charter
European Investment Bank
SUSTAINABLE
COMMUNITIES
Innovation and
education policiesHigh quality
public spaces
Infrastructure networks
and energy efficiency
Regenerate deprived
neighbourhoods
Improve physical
environment
Training for children
and the young
Local economy
and labour
market policies
Efficient affordable
transport

9. 9
Overcoming Fragmentation
Integrated Planning
European Investment Bank
An integrated approach to territorial development for effective
improvement in the socio-economic conditions of settlements,
whatever spatial scale, requires identification of the co-operating
elements of infrastructure investment with the evolution of the
social capital that should be developed simultaneously in the areas
where applied.

10. 10
Integrated Planning and EIB’s Three Pillars
A project assessment with many facets, but three key elements in
the appraisal process.
European Investment Bank
Eligibility, i.e. consistency with EU priorities.
Technical quality and economic soundness.
Financial viability and adequate security.
Projects must also comply with EU procurement, environmental
and social protocols.

11. 11
The EIB Project Cycle
30/07/2013 11

12. 12European Investment Bank
Benefits of an EIB loan
Large amounts
Broad range of currencies
Long maturities
Attractive interest rates
Catalyst for participation of other banks or financial
partners

13. 13
Value Added of the Bank’s Activities
European Investment Bank
Support for EU priority objectives
Project quality and soundness
Financial benefits of EIB funds
Technical assistance
Project assessment

14. 14
Facilitating the Recovery
An enhanced role for EIB is not the solution to the crisis, but
should certainly be part of the solution.
European Investment Bank
A capital injection of €10 billion
Leverage for significant additional borrowing and
associated lending opportunities
Focus on the EU for the creative and sustainable
deployment of additional funds
Promoting growth, sustainable development and
employment generation

15. 15
Promoting European Objectives
European Investment Bank
Evolution of EIB lending activity
The EUR 10bn paid-in capital increase will enable a 40% lending growth over the
base signature level foreseen in the Operational Plan 2012-2014

16. 16
Priority objectives for additional funding
European Investment Bank
Convergence
Small and medium-sized enterprises (SMEs) and
mid-cap enterprises
Environmental sustainability
Knowledge economy
Trans European Networks (TENs)
Sustainable, competitive and secure energy

17. 17
Some Ingredients for Successful Projects
European Investment Bank
Informed by a clear plan and/or development
strategy.
Commitment of, and clear benefits for, all relevant
stakeholders both public and private.
Exploits the comparative advantage of its locality.
Promotes accepted best practice in sustainable
development.
Exploits innovative financial instruments
and, where/when appropriate, takes advantage of
technical assistance.

18. 18
EIB CONTACT INFORMATION
Brian G. Field
Regional and Urban Division
European Investment Bank
100 boulevard Konrad Adenauer
L-2950 Luxembourg
Tel: +352 4379 83063
Email: b.field@eib.org
European Investment Bank