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EIF Presentation Template - PDF


									                                                                                       Madrid – 21 November 2008
         Richard Pelly                                                                                                                    New Instruments for
   Chief Executive                                                                                                                          SME Financing

                         This presentation was prepared by EIF. The information included in this presentation is based on figures available for November 2008
                    Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

                          EIF at a Glance

                       EU specialised institution for SMEs, risk financing
                       Venture Capital and Mezzanine (fund of funds)
                       Structuring and Guaranteeing portfolios of SME and microfinance loans/leases

                  Geographic Focus /                                                                                                                            Authorised Capital
                  Intermediaries                                                                                                                                EUR 3bn
                  EU 27, EFTA,                                                                                                                                  EIB: 63.6%
                  Candidate Countries                                                                                                                           EU: 27.4 %
                  Distributing through Banks                                                                                                                    Fin. institutions: 9 %
                  and Funds                                                                                                                                     AAA rated
                                                                                                                                                                AAA rated
                                                                    Staffing, Culture and Values
                                                                    Leading-edge modern institution
                                                                    Attracting talented staff
                                                                    Adapting to changing market conditions
                                                                    High standards of compliance and integrity

                                              Dual Objective of Meeting EU Policy Goals & Generating a
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                          Operating Model of EIF
                           Transformational Role of EIF

         Suppliers /
                              Key Success         Intermediaries
         Mandators              Factors

         Own                Product                 Commercial
                                                    banks                 SMEs
         resources          development
         EIB (RCM)           Mandate                Development
         EC (CIP)            management             &
         MA (JEREMIE)        Transaction            Promotional
                             execution              banks
         MS (ERP)
                             Risk management       Guarantee
         Funds of Funds
                             Follow-up and         Institutions
                             relationship focus    Fund Managers

                          VALUE ADDED
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            Competitiveness & Innovation Framework
            Programme (CIP)
                     Encourage the competitiveness of European enterprises
                     Support innovation and entrepreneurship activities
                     Provide better access to finance
                     Promote the increased use of renewable energies and energy
                The European Commission has mandated the management of the
                CIP financial instruments to EIF

                CIP budget - total envelope for VC and Guarantees : EUR 1.1bn to
                be invested over a period 2007-2013

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         CIP SME Guarantees Instruments

         Four products, known as "windows“
         ■ Loan Guarantees cover portfolios of SME mid- to long-term
            debt finance targeting SMEs and focuses on investment financing
         ■ Micro-Credit Guarantees cover portfolios of micro-credits to
            encourage financial institutions to provide financing to
            microenterprises, especially start-ups
         ■ Equity Guarantees cover portfolios of investments in SMEs in
            the seed and start-up phases; Quasi Equity Guarantees are
            available to cover portfolios of mezzanine financing. Equity and
            Quasi-Equity Guarantees aim to help SMEs improve their financial
         ■ Securitisation: guarantees to support securitisation transactions
            so that financial institutions may mobilise additional debt financing
            for SMEs

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         JEREMIE: Increasing the Deployment of
         Self-Sustaining Financial Instruments for
         The Joint European Resources for Micro to Medium Enterprises
             Joint initiative of the EU (DG Regio & EIB Group) launched in October
             Joint also because it potentially combines resources from the EU,
             National Public Authorities, EIF, EIB and/or other financial institutions
             Participation in JEREMIE optional for each country – Holding Fund
             Management or Technical Assistance
             Uses European Regional Development Funds for enhancing SME access
             to finance in New Member States and in Regional Development areas
             through sustainable and “revolving” financial instruments
             Creates leverage
             Encourages move away from grant dependency

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         JASMINE - Joint Action to Support
         Microfinance Institutions (MFIs) in Europe

            European Commission: Technical Assistance (EUR 4-6m)
            European Parliament: Funding EUR 4m
            EIB: Funding EUR 20m
            EIF: Management
            Support of EUROFI
         Key Objectives
            Enhance commercial banks' direct funding of European MFIs through co-
            Invest in Tier II Micro Finance Institutions - small MFIs developing into
            microfinance banks

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         Addressing New Needs in 2009 –
         The Small Business Act

         Risk Sharing Option for EIB SME Loans
            Active development of a portfolio guarantee option
            Small number of pilot banks engaged

         EUR 1bn facility distributed through funds for:
            Quasi-equity, without equity sponsors
            Mezzanine capital for transmission and development
            Instruments for high growth technology companies in their
            development stage

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                         Resources and Commitments
                          Venture & Growth Capital

                         Current Commitments
                         Current Commitments                                 Future Opportunities in Spain
                                                                             Future Opportunities in Spain
         € millions
         € millions             Total
                                Total              Spain
EU instruments
EU instruments                                                               ■ Develop further VC/PE industry
MAP                              256
                                 256                 23*
                                                     23*                       through cornerstone investment
CIP (since 1/1/08)
CIP (since 1/1/08)               115
                                 115                  --                       & Technical Assistance
                                                                             ■ Develop JEREMIE advisory
           EIB/EIF             3,110
                               3,110                 244*
                                                     244*                      services (Canary Islands,
                                                                               Andalucía, Galicia, Cataluña)

                                                                             ■ Invest Neotec Fund primarily in
           Other                  155
                                                                               Spanish technology companies
         NEOTEC                     --              183**
                                                    183**                      in line with agreed strategy
                                                                             ■ Develop Madrid based team
           TOTAL                3,636
                                3,636              267*

8 / 13                * Including NEOTEC ** including EIF € 50m commitment
                      * Including NEOTEC ** including EIF € 50m commitment

                             NEOTEC: Spanish Technology

                                Final closing June 2006 at EUR 183m (EIF sponsor with EUR 50m)
                                Spanish technology fund (TMT, bio-tech and life sciences)
                                EIF managed; Madrid-based
                                Deal flow to major tech and research centres in Spain
                                Shared services centre in Luxembourg for risk management, IT
                                (proprietary Fund-of-Funds system) and legal support
                                Major Spanish blue chips involved

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                                                         Tapping into future growth
                        Resources and Commitments

                        Guarantees & Securitisation

                        Current Commitments
                        Current Commitments                   Future Opportunities in Spain
                                                              Future Opportunities in Spain

           € millions
           € millions      Total
                           Total           Spain
EU instruments                                                ■ Build on deep EIB/EIF
               MAP         7,300           850                  relationships with key
       First loss cap       435            47                   commercial banks to support:
                CIP         792            420 (imminent)
                                                                   ■ Liquidity
       First loss cap       51             18
EIB/EIF                                                            ■ Risk Sharing
Credit Enhancement        4,323             280
Insurance                                                          ■ Capital Protection

TOTAL                     12,415
                          12,415          1,550

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                                       COUNTRIES COVERED BY CIP GUARANTEES
                                       4 AGREEMENTS SIGNED for over EUR 792m

■ FdP (Fonds de Participation)
  autonomous Belgian public
■ KfW - largest promotional bank in
■ SOCAMA (Banque Fédérale des
  Banques Populaires) French
  network of 30 mutual guarantee
■ SIAGI (Société Interprofessionelle
  Artisanale de Garantie
  d’Investissements) French mutual
  guarantee institution
■ 2 imminent signatures in Spain

In the pipeline
■ Further signatures with Italian,
  Hungarian and Greek intermediaries
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          JEREMIE                                              1.   Greece EUR 100m

          Implementation Map                                   2.   Romania EUR 100m
                                                               3.   Latvia EUR 203m
                                                               4.   Lithuania EUR 80m
                                                               5.   Languedoc
                                                                    Roussillon EUR 30m

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           European Investment Fund
           96 boulevard Konrad Adenauer
           L-2968 Luxembourg

           Tel.: (+352) 42 66 881
           Fax: (+352) 42 66 88 200


                       People in Athens, Brussels, Istanbul, Lisbon,
13 / 13                   Luxembourg, Madrid, Paris & Rome

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