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What We Do

EFSI is an EU initiative which aims to help overcome the investment gap in the EU by mobilising private financing for strategic investments. It will support investment in strategic infrastructure including digital, transport and energy; education, research, development and innovation; expansion of renewable energy and resource efficiency; and support for smaller businesses and midcap companies.

Current Status: Open for Applications
Maximum value: Discretionary

Objectives of Fund

The European Fund for Strategic Investments (EFSI) is a €16 billion guarantee from the EU budget, complemented by €5 billion of EIB funding. It has dedicated governance to ensure that it remains focused on its specific objective - which is to increase the volume of higher risk projects supported by EIB Group financing operations and to address the market failure in risk-taking which hinders investment in Europe.

EFSI is integrated into the EIB Group and projects supported by EFSI are subject to the normal EIB project cycle and governance.

Previous Success

October 2015 - The EIB has announced its first UK projct to be backed by the European Fund for Strategic Investments. The EU bank has agreed to provide £225 million for the Galloper Wind Farm which will be constructed 27km off the Suffolk Coast. Once operational the offshore wind farm will be capable of providing enough clean energy to supply up to 336,000 homes from 56 of the world's largest wind turbines.

Further information is available from the EIB website.

Value Notes

EFSI will benefit from a guarantee financed by the EU budget of €16 billion; along with an EIB contribution of €5 billion in cash.

It is expected to mobilise at least €315 billion overall in private and public investments across the EU 28.

The €21 billion endowment of EFSI will allow the EIB Group (both EIB and EIF) to back financing worth in total approximately €61 billion over the investment period, on top of its ordinary base activity (which in recent years has been around €50 billion annually). The objective is for EIB Group support to mobilise other sources of public and private sector finance to support investment worth much more than the EFSI financing provided.

The UK will co-finance around €8.5 billion in EFSI projects.

The EIF will provide financing via intermediaries targeting SMEs and mid-cap companies.

Who Can Apply

The following are eligible for EFSI funding:

•Entities of all sizes, including utilities, special purpose vehicles or project companies, small and medium-sized enterprises (with up to 250 employees) and midcaps (with up to 3,000 employees).
•Public sector entities.
•National promotional banks or other banks to deliver intermediated lending.
•Funds and any other form of collective investment vehicles.
•Bespoke investment platforms.

Eligible Expenditure

Support will be focused on projects which could not have been carried out, or not to the same extent, by the EIB, the EIF, or under existing EU financial instruments without EFSI support.

Investments will be targeted at:
•Strategic infrastructure including digital, transport and energy.
•Education, research, development and innovation.
•Expansion of renewable energy and resource efficiency.
•Support for smaller businesses and midcap companies.

Projects supported by EFSI will typically have a higher risk profile than projects supported by EIB normal operations and need to be:
•Economically and technically sound.
•Match the eligible sectors.
•Contributing to EU objectives and to sustainable growth and employment.
•Mature enough to be bankable.
•Priced in a manner commensurate with the risk taken.

How To Apply

Project promoters should follow the usual EIB loan application procedures.

SMEs interested in EFSI transactions financed via the EIF (European Investment Fund) should refer to information on EIF financial intermediaries.

Financial institutions interested in collaborating with EIF under the EFSI programme, including guarantee or credit institutions and loan (debt) funds authorised to carry out lending or leasing activities to SMEs, established and operating in one or more of the EU Member States, can apply under the COSME and InnovFin programmes.

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