Docstoc

EUROPEAN INVESTMENT BANK – TOOLS FOR GEOTHERMAL ENERGY Loans 1

Document Sample
EUROPEAN INVESTMENT BANK – TOOLS FOR GEOTHERMAL ENERGY Loans 1 Powered By Docstoc
					                        EUROPEAN INVESTMENT BANK –
                      TOOLS FOR GEOTHERMAL ENERGY


Loans:


1. Individual or framework loans
Aimed at projects or programs with investment costs of at least EUR 25 million (EUR 10
million in the case of ACP), undertaken by both (semi-)public and private sector
borrowers. The maximum loan amount is generally up to 50% of the total project cost.
Adequate security is needed, such as that provided by a bank or banking syndicate, a
financial institution, or a large diversified parent company with a good credit rating.
Interest Rates:
fixed rates
revisable fixed rates
convertible rates (allowing for the change of interest rate formula during the life of the loan
at predetermined dates or periods.).
Repayment:
Repayment is normally on a semi-annual or annual basis. Grace periods for capital
repayment may be granted for the construction phase of the project.




2. Credit lines
Investments of up to EUR 25 million (EUR 10 million in the case of ACP) to support
smaller projects at own credit risk, SMEs with fewer than 250 employees or local
authorities; an annual turnover not exceeding EUR 50 million, and an annual balance
sheet total of up to EUR 43 million. In the case of energy RDI, promoters of any size and
ownership are eligible for allocations from credit lines. The maximum amount for
allocations is generally up to 50% of the investment cost, but for energy RDI and
investment in emissions reduction the maximum is 75%.
Credit lines are granted to intermediary banks and financing institutions in the country in
which the project is based. These institutions pass on the EIB funds to the promoters,
generally SMEs and local authorities.
Conditions:
The conditions of financing are determined by the respective EIB partner bank. Maturities
typically range between 5 and 12 years.
Promoters are requested to apply directly to one of the intermediary banks and financing
institutions, which operate on a national, regional or local level. Requirements for application
may vary according to the respective intermediary.




3. Mid-cap loans
Investments of up to EUR 50 million; intermediate-sized companies with fewer than 3 000
employees (“mid-caps”). Midcap loans are lines of credit in support of projects undertaken
by intermediate-sized companies with fewer than 3 000 employees (“midcaps”). The
maximum amount for sub-loans under mid-cap loans is generally up to 50% of the
investment cost.




Other tools :


1. Risk-Sharing Finance Facility - recast in 2010
To meet the requirements of projects or promoters with a high-risk profile, the EIB and
the Commission have jointly established RSFF. It provides for credit risk sharing between
the Commission and the EIB and enables the Bank to provide loans or guarantees with a
low and sub-investment grade risk profile. Direct RSFF loans start at EUR 7.5 million.
Background information:
The RSFF, an innovative debt-based facility, designed by the European Commission and the
EIB, was launched on 5 June 2007. It is part of the EU's 7th Framework Programme for
Research (FP7), and the EIB's Innovation 2010 Initiative. RSFF creates an additional
capacity up to EUR 10 billion of higher risk financing in support of research,
technological development, demonstration and innovation activities (RDI). The Commission,
via FP7, and the EIB will each contribute up to EUR 1 billion to RSFF which will provide
the necessary capital to underpin the expected loans and guarantees by the EIB of several
billion Euros.
The EIB will implement RSFF in close collaboration with all major EU national and
regional banks, which are providing support to the development of European companies.
The RSFF facility will significantly increase the EIB’s value added by sharing part credit risk
related to these operations. This will increase the capacity of banks and other financial
intermediaries to support research, development and innovation activities.
Contact:
Sabine Parisse
s.parisse@eib.org
+352 43 79 - 83340




2.       2020    European       Fund      for    Energy,      Climate        Change      and
Infrastructure (Marguerite Fund)
Fund-raising target of EUR 1.5 billion by 31 December 2011.
One of the prime European equity financing European policy objectives and projects in the
transport, energy and renewables sectors. First instrument of cooperation among
European long-term investors, the Fund will stand as an innovative example in several
respects:


     •    priority given to projects addressing the climate-change goals defined by the
          European Union;
     •    its governance and financial management will comply with the philosophy of Long
          Term Investors;
     •    the management team’s incentive and remuneration system will be consistent with
          G20 guidelines.


Signed on December 3, 2009 between the following beneficiaries: The EIB, Caisse des
Dépôts et Consignations (CDC), Cassa Depositi e Prestiti (CDP), Kreditanstalt für
Wiederaufbau (KfW), Instituto de Credito Oficial (ICO), and Powszechna Kasa Oszędności
(PKO).




3. Structured Finance Facility (SFF)
Established in 2001; the replenishment of the SFF Reserve leaves a balance of EUR 1
billion available for future allocations ; for projects with a risk profile that is higher than
the standard normally accepted by the Bank. The emphasis is on high-priority sectors of
TENs, i2i, energy and cooperation in partner countries, but also on other priority
objectives where appropriate, such as SMEs.
4. ELENA – European Local Energy Assistance
Fund of EUR 15 million from the Intelligent Energy Europe 2009 budget.
Established by the European Commission and the EIB ; designed to finance a technical
assistance facility and help local and regional authorities or other public bodies make
investments in energy efficiency and renewable energy contributing to the 20-20-20 goals.
The minimum size of possible investment programs is EUR 50 million, however, smaller
projects can be supported when they are integrated in larger programs. Proposals can be
sent until the end of 2011 under the condition that the fund does not already have been
exhausted. The maximum duration of a project is limited to 3 years. Contact :
elena@eib.org




General Information about the European Investment Bank and its
different tools on
http://www.eib.org/products/loans/index.htm
Some examples of geothermal projects co-financed by the EIB:



RE Geothermal Energy
  •   Beneficiary: Orkuveita Reykjavikur (Reykjavik Energy)
  •   Location : Iceland
  •   Total cost : Approximately EUR 340 million
  •   Proposed EIB finance : Up to EUR 170 million
  •   Status : Signed - 20/11/2009


Olkaria II Extension
  •   Beneficiary: Kenya Electricity Generating Company Ltd. (KenGen)
  •   Location: Kenya
  •   Total cost: Estimated at EUR 68 million
  •   Proposed EIB finance: Loan in an amount of up to EUR 32.5 million
  •   Status: Signed - 31/05/2005


Hungary Geothermal Energy
  •   Beneficiary: Pannergy Nyrt.
  •   Location: Hungary
  •   Total cost: Approximately EUR 220 million
  •   Proposed EIB finance: Up to 50% of project cost
  •   Status: Under appraisal - 15/04/2009


Hellisheidi Geothermal Power
  •   Beneficiary: Orkuveita Reykjavikur (Reykjavik Energy (RE)
  •   Location: Iceland
  •   Total cost: Approximately EUR 280 million
  •   Proposed EIB finance: Approximately EUR 140 million
  •   Status: Signed - 16/07/2007

				
DOCUMENT INFO