What we do
Institutional investors
Equity products
AI Co-Investment Facility
Cleantech Co-Investment Facility
Impact investing at the EIF
Climate & Infrastructure Funds
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
VentureEU
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
ESCALAR Programme
Debt products
New ESIF ERDF Guarantee Fund initiative in Greece
EFSI Private Credit Programme
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
Skills & Education Guarantee Pilot
EREM debt products
Single EU Debt Financial Instrument
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Normandie Garantie Agri
FAIRE - La Réunion
Auvergne Rhône-Alpes FEADER
Recovery Equity Fund of Funds of Bulgaria
Fons d’Inversió en Tecnologia Avançada (FITA) Catalonia
Dutch Future Fund (DFF)
Dutch Alternative Credit Instrument (DACI)
PORTUGAL BLUE: a new initiative for blue economy investments
JEREMIE Greece Reflows – Business Angels’ Co-Investment Equity Instrument
German Corona Matching Facility (CMF)
Portugal Growth programme
Central and Eastern European Technology Transfer (CEETT)
Croatian Growth Investment Programme (CROGIP) II
Croatian Growth Investment Programme (CROGIP)
Croatian Venture Capital Initiative 2 (CVCi 2)
AGRI Italy Platform Uncapped Guarantee Instrument
DISPOSITIF INSTRUMENTS FINANCIERS BOURGOGNE FRANCHE-COMTÉ
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund 1 (BIF 1)
Baltic Innovation Fund 2 (BIF 2)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
The Cyprus Entrepreneurship Fund (CYPEF)
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
EU4Business Capped Guarantee
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
ESIF Fund-of-Funds Greece
EAFRD FoF Portugal
EAFRD FoF Romania
The ERP-EIF Facility
ERP-EIF Co-Investment Growth Facility
The LfA-EIF Facilities
The German Future Fund (GFF) - EIF Growth Facility
INAF – French National Agricultural Initiative
ESIF Energy Efficiency and Renewable Energy Malta
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
EstFund
Call for Expression of Interest for FOSTER II
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
JEREMIE
Romania Recovery Equity Fund of Funds
JEREMIE Romania Reflows – Equity Instrument
Luxembourg Future Fund 1 (LFF)
Luxembourg Future Fund 2
Mezzanine 'Fund of Fund' for Germany (MDD)
NEOTEC resources
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)
EAFRD FoF Greece
Irish Innovation Seed Fund (IISF)
RRF Czech Republic Fund of Funds

EU bank steps up efforts to fight climate change and foster innovation

  •  
    Date: 29 January 2019

In the year of its 60th anniversary, the EU bank supported EUR 230 billion of investment, meeting its Juncker Plan targets ahead of schedule and successfully navigating a politically difficult environment. Shifting its focus from Europe’s economic recovery to competitiveness, the European Investment Bank (EIB) Group zoomed in on market gaps identified by its experts, so that its investments would have the biggest impact on Europe’s economy. “Digitalisation, SMEs, education and skills, sustainable energy and the modernisation of infrastructure are crucial for the European economy to keep pace with global competition,” EIB President Werner Hoyer said at the EIB Group’s annual press conference on Tuesday in Brussels.

Thanks to increased efficiency in crowding in private capital, the amount of total investment supported was close to the level achieved in 2017, balancing a reduction in the EIB Group’s overall financing volume to EUR 64.19 billion in 2018. The number of signed projects reached 854. The EIB’s subsidiary, the European Investment Fund (EIF), even reported a record financing volume of EUR 10.06 billion, benefiting tech pioneers and small and medium-sized companies all over Europe.

“The EU bank represents the ability of Europe to deliver at a time when too many across the continent seek shelter in parochial nationalism. The Bank’s investment brings Europeans closer, and that is the basis on which future jobs and growth will be built for all EU Member States,” Hoyer said.

For 2019, the EIB Board has approved a corporate operational plan with an orientation of slightly above EUR 70 billion of financing by the EIB Group. This would represent an increase of around 10% compared to last year.

Surpassing the objectives of the Juncker Plan

The best example of the successful crowding-in of private capital is the European Fund for Strategic Investments (EFSI), managed by the EIB Group as part of the Juncker Plan. Based on an original guarantee of EUR 21 billion by the European Commission and the EIB, the objective was to mobilise EUR 315 billion of investment by mid-2018. In fact, EFSI surpassed this goal. It has mobilised investment of more than EUR 375 billion so far and is now heading for a new target of EUR 500 billion by 2020, supported by additional guarantees. Negotiations with the European Commission on the continuation of this successful model under the post-2020 EU Multiannual Financial Framework are advancing well. 

“No matter how good our performance with EFSI by 2020, the principles and roles that enabled its success must be maintained beyond that date,” Hoyer said.

Intensifying climate action

Climate action is another area in which the EIB Group is instrumental in delivering on EU policy goals. The EIB remains the world’s largest multilateral financier of climate action projects. In 2018, the EU bank increased the proportion of its lending that goes towards combating climate change to close to 30%. The EIB has also just started an energy lending review to adapt its policy to a changing environment. A three-month public consultation with industry, civil society groups and policymakers is underway.   

Supporting innovative companies

The EIB Group covers the full spectrum of financing for innovative companies in the EU. It is the biggest provider of risk capital for start-ups through investments in venture capital funds, it offers equity and venture debt for growing companies that need to scale up, and it finances research and development programmes that allow medium-sized and bigger companies to remain competitive on global markets. Despite the dip in overall lending, the EU bank invested almost as much in innovation as in the preceding year – EUR 13.52 billion.

374 000 SMEs benefited from EIB Group financing last year, intermediated through financial partners. 

Helping Europe to grow together

“The EU bank is focusing on increasing the competitiveness of European companies and infrastructure networks, but this does not mean it forgets to support regions that are still in the process of catching up. No one should be left behind,” President Hoyer explained. Nearly 32% of all EIB investment in Europe went into cohesion and convergence regions last year.

But it is not only investment that helps regions catch up. Sound financial and technical advice is just as important. The EU bank offers this on a large scale, using its unique expertise in banking as well as engineering. Last year, the EIB’s advisory services took up 530 new assignments. It supported operations with a total estimated investment cost of more than EUR 40 billion.

Mobilising private capital to achieve environmental and social goals worldwide

The EIB Group funds its activities on the global capital market. It borrowed EUR 60 billion from international investors in 2018, slightly more than the year before. The EIB remains an important bond issuer with an “AAA” rating, not only because of the volume of its issuance, but also because of its role as an innovator and standard-setter.

The EU bank was instrumental in creating the EUR 450 billion green bond market. It issued the first of these bonds eleven years ago and played a key role in setting the standards for this investment category. Last year, the EIB issued its first Sustainability Awareness Bond, raising EUR 500 million for investments to meet the UN’s Sustainable Development Goals. The proceeds from the first bond will mainly be invested in water projects. This year, the EIB plans to issue further bonds for investments towards meeting the Sustainable Development Goals, notably in the areas of healthcare and education.

Money raised on the capital markets is used by the EIB to improve the living conditions of people all over the world. Lending outside the EU rose to EUR 8.1 billion in 2018. A record sum of EUR 1.6 billion went to projects in sub-Saharan Africa. “We are ready to do more and support a shift in development policy from aid to investment and from a donor-recipient relationship to partnership,” Hoyer confirmed.

Capital lost due to Brexit will be replaced

The EIB Group received an important signal of support from the EU Member States. When the United Kingdom leaves the EU, the EU bank will lose one of its biggest members. To make sure that this does not affect the EIB’s business in the EU-27, the remaining Member States have decided to fully replace the capital that would be lost when Brexit takes place. No capital injection will be needed because the capital will be replaced using EIB reserves. Additionally, some Member States have shown an interest in paying capital into the EIB to increase their shares. Along with the financial measures, a number of governance changes are planned. Details of this agreement are still being finalised.

Note to the editor:

All figures are unaudited and provisional.

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

Press contact:

Dirk Heilmann
d.heilmann@eib.org
tel.: +352 4379 83175 / Mobile: +352 691 284 094

Christof Roche
c.roche@eib.org
tel.: +352 4379 89013 / Mobile: +32 479 650 588

Website: www.eib.org/press 

Press Office:
tel.: +352 4379 21000 – press@eib.org

 

We use cookies to give the best browser experience on our website. or change cookie settings.

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.

 
 

Copyright ©

 European Investment Fund   – The European Investment Fund is not responsible for the content of external internet sites.