EIB activities for SMEs:

Achievements and Challenges ahead

Romualdo Massa Bernucci

Director in charge of the

EIB SMEs Centre of Expertise

EU Access to Finance Day in Dublin 5 February 2014

2

EIB activities for SMEs

2

Structure of presentation

1. EIB products for SMEs

2. EIB SME lending results

3. New initiatives

4. Looking forward and conclusions

05/02/2014

indirect indirect

Microenterprises SMEs Mid-caps

Senior Loans /

Guarantees

Equity

Hybrid /

Mezzanine

EIF Guarantees and Securitisation

EIB Intermediated Loans

EIB Mid-cap Initiative loans &

gtees, RSFF

EIF RCR Mezzanine

for Growth

EIF Venture and Growth Capital Funds of Funds, Tech Transfer,

Business Angels

EIB Growth

Finance

Initiative EIF Microfinance

indirect/direct

Overview

EIB Group SME Product Range

3

EIF Products EIB Products

05/02/2014

• Main funding product of the EIB aiming at improving conditions and enhancing access to

finance for SMEs

• Standardized product reaching a very large and diversified number of SMEs via Financial

Intermediaries

• 3 Pillars:

4

EIB Intermediated Lending: the Loan for SMEs

Transparency

• Final beneficiaries are informed of EIB involvement

Transfer of Financial

Advantage (ToFA)

• Financial intermediaries benefit from financial value added and transfer an agreed share to the final beneficiaries

Complementarity

• EIB leverage effect min. 2 times

05/02/2014

• Growth Finance Initiative (GFI) = Direct financing (loans, quasi-equity and mezzanine) for

amounts between 7.5m – 25m to innovative MidCaps

• Mid-cap Initiative (MCI) = Senior risk sharing with financial intermediaries for innovative

MidCaps

Other EIB Group financing facilities

• Other financing facilities of EIB and EIF where appropriate with the European

Commission: Guarantees and counter-guarantees (via financial intermediaries), Risk-

Sharing Finance Facility and RSFF for SMEs and small MidCaps (RSI)

5

EIB direct lending and senior risk sharing

to the benefit of innovative MidCaps

05/02/2014

6

EIB activities for SMEs:

past achievements and future products

6

Structure of presentation

1. EIB products for SMEs

2. EIB SME lending results

3. New initiatives

4. Looking forward and conclusions

05/02/2014

7

EIB SME and MidCap lending 2009-2012

and COP projections 2013 – 2016 (EU and CPCs)

7

14,9

11,2 10,2

12,1

17

17.5 - 18.5 17.5 - 18.5

14.0 - 18.0

0

2

4

6

8

10

12

14

16

18

20

2009 2010 2011 2012 2013 2014 2015 2016

EU

R b

n

EIB signatures COP COP low- high range

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EIB support for SMES in Ireland

Allocations to SMEs

0

500

1000

1500

2000

2009 2010 2011 2012 2013

Alloc. Volume

Alloc. Volume Linear (Alloc. Volume)

0

50

100

150

200

250

2009 2010 2011 2012 2013

Nb of Allocations

Nb of Allocations Linear (Nb of Allocations)

IRELAND

2009 2010 2011 2012 2013

Total for 5 years

(2009 - 2013)

Nb

Allocs

Amount

(M EUR)

Nb

Allocs

Amount

(M EUR)

Nb

Allocs

Amount

(M EUR)

Nb

Allocs

Amount

(M EUR)

Nb

Allocs

Amount

(M EUR)

Nb

Allocs

Amount

(M EUR)

TOTAL for 2

intermediaries 16 50 141 1273 49 129 226 1755 9 8 441 3215

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EIF in Ireland

Equity, guarantees and microfinance

9

40,4

1.4

83,4

11,1

0

10

20

30

40

50

60

70

80

90

Guarantees Microfinance

EU

R M

Outstanding commitments Mobilised resources

53,4

551,5

0

100

200

300

400

500

600

Equity

EU

R M

Amount invested by EIF in SMEs through portfolio funds

Total mobilised amount, invested by portfolio funds

05/02/2014

10

EIB activities for SMEs:

past achievements and future products

10

Structure of presentation

1. EIB products for SMEs

2. EIB SME lending results

3. New initiatives

4. Looking forward and conclusions

05/02/2014

11

“Investing for Youth” Initiative

EUR 6bn of lending to contribute to the EU effort in H2 2013

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Support youth employment by improving access to

finance for SMEs:

PHASE 1: allocations in EU regions with high youth unemployment (EUR 4.5bn in H2

2013)

PHASE 2: dedicated loan tranches at improved interest rate (EUR 216m in H2 2013)

PHASE 3: blending EIB operations with EU grant funds

“Jobs for

Youth”

Overview

Enhance employability via targeting projects focused on:

Education infrastructure & facilities

Vocational training programmes

Student finance

“Investing

in skills”

Overview

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EIB SME Trade Finance Facility

12 12

Aiming at revitalising the trade finance market for SMEs and

MidCaps in Greece

EIB provides its AAA guarantee to cover 85% of the risk of

international trade transactions undertaken by Greek Banks

EUR 150m approved in 2013 out of the EUR 500m dedicated to

this initiative

Background

Overview

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EIB activities for SMEs

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Structure of presentation

1. EIB products for SMEs

2. EIB SME lending results

3. New initiatives

4. Looking forward and conclusions

05/02/2014

• Ensure continued availability of financing for SMEs through banking partners

• Maintain and improve impact of EIB finance on SME final beneficiaries - transfer of financial advantage, tenor of sub-lending

• Continued development of risk-sharing activities for innovative SMEs and wider ABS initiative for growth funding

• Respond to evolving EU policy priorities: youth employment, trade finance, etc.

• 2014 EIB lending to SMEs in the range of EUR 17.5 – 18.5 bn. Maintaining similar level of lending in 2015 and slightly lower in 2016

• Continue strengthening cooperation with the European Commission, Member States, national and multilateral development financing institutions, and also SME and banking associations

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Looking forward – Enhancing EIB support for

SMEs

05/02/2014

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Thank you!

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