EIB operations inAsia

ASEAN – EU Connectivity Dialogue Luxembourg, 25th February 2014

European Investment Bank

EIB LENDING IN ASIA AND LATIN AMERICA (ALA)

A bit of History …

Operations in ALA started in 1993

Until 2006 the remit was to support EU presence through loans to:

- Subsidiaries of EU companies

- EU/ALA joint ventures

- Transfer of EU technology

EIB provided long-term financing and political risk guarantee (Risk-Sharing)

European Investment Bank 2

EU BENEFICIARIES OF EIB LENDING IN ALA

European Investment Bank 3

Since 2007:

• Support of EU presence

• Environmental sustainability

From 2011:

• Environmental sustainability

• Social and economic infrastructure

• Local private sector

EU Support no longer a sufficient criteria but a desirable side effect

Evolving objectives …

EIB LENDING IN ALA

European Investment Bank 4

Asian Countries eligible for EIB financing under the ALA Mandate

22 Eligible countries in Asia

Framework Agreements signed with 14 Asian countries.

Afghanistan*, Bangladesh, Bhutan*, Brunei*, Cambodia*, China (including Hong Kong and Macao Special Administrative Regions), India, Indonesia, Laos, Malaysia*, Maldives, Mongolia, Nepal, Pakistan, the Philippines, Singapore*, South Korea*, Sri Lanka, Taiwan*, Thailand, Vietnam, Yemen.

* No Framework Agreement signed

EIB LENDING IN ASIA

European Investment Bank 5

MAP OF ELIGIBLE COUNTRIES

European Investment Bank 6

14 Asian countries with Framework Agreement 8 Asian countries without Framework Agreement

EIB LENDING IN ASIA

European Investment Bank 7

As of 01.01.2014, the Bank has lent:

EUR 5.2 billion via 61 loans in 12 Asian countries

33% to Private and 67% to Public Sector

Country distribution

EIB LENDING IN ASIA

European Investment Bank 8

Breakdown by Activity

Water, sewerage4%

Energy32%

Global Loans9%

Industry17%

Services0.29%

Telecommunication14%

Transports19%

Agriculture, Forestry and

Fishing 5%

EIB LENDING IN ALA

European Investment Bank 9

In the Year 2013, the Bank has*:• Signed EUR 515.8m

– Nepal Tanahu Hydropower project (EUR 53.8m)– Exim Bank of India Climate Change FL (EUR 150m)– Bangladesh Power Energy Efficiency (EUR 82m)– Sri Lanka SME and Green Energy FL (EUR 90m)– Srei Climate Change FL (EUR 40m)– Pakistan Keyal Khwar Hydropower Plant (EUR 100m)

• Approved by CA EUR 350m– Dhaka Environmentally Sustainable Water Supply (EUR 100m)– Ireda Renewable Energy and Energy Efficiency FL (EUR 200m)– Ulaanbaatar Water (EUR 50m) * Allocations under already signed framework loans not shown above

EIB LENDING IN ASIA IN 2013

European Investment Bank 10

Lending in ASIA has proved lucrative:

• For the EIB– Very high IRRI– Positive contribution to the Bank’s overheads– Low capital consumption

• For EU Companies– Long term funding at AAA conditions– Free political risk guarantee

• For the ASIA countries– Employment creation– Transfer of technology– Foreign exchange income– Fiscal inflows

EIB LENDING IN ASIA: A LUCRATIVE ACTIVITY

European Investment Bank 11

RELEVANCE OF ASIA FOR THE EIB CLIMATE CHANGE ACTION

• By 2030 ASIA will emit more than half of the world’s GHG emissions

• ASIA includes the most vulnerable areas and the countries with hugest renewable energy and carbon credit potential

• The unit cost of reducing GHG emissions in ASIA is much lower than in Europe

European Investment Bank 12