Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
“Agribusiness Financing: Innovative
Financial Solutions”
Adam Bruun, Head of EIB Pacific Regional Office
European Investment Bank
The European Investment Bank (EIB):
Lending to Financial Institutions for SME Financing
2nd
Pacif...
European Investment Bank
How does the EIB support Private Sector Funding?
SMEs +
microfinance
Mid-cap
enterprises
Large co...
European Investment Bank
Risk-bearing: Impact Financing Envelope (IFE)
Areas of Focus
⇒ Social and demographic challenges:...
5European Investment Bank
Loans to Financial Intermediaries
Social Impact Funds Risk-sharing Instruments
Direct Financing
...
6European Investment Bank
The Caribbean and Pacific Impact
Finance Facility (CPIFF)
Financial intermediaries
-Microfinance...
7European Investment Bank
CPIFF Requirements
• As a rule:
– loans to eligible final beneficiaries shall not exceed EUR
50,...
European Investment Bank
EIB in the Pacific
Adam Bruun
Head of Regional Office
tel +(61 2) 8211 0536
email: a.bruun@eib.or...
Example: ACP Smallholder Farming
9
A joint initiative of EIB and IFAD to support smallholder farming activities in ACP cou...
10European Investment Bank
Cotonou Agreement: Resources and Amounts
Investment Facility (IF) revolving fund
* Instruments ...
Upcoming SlideShare
Loading in …5
×

2nd Pacific Agribusiness Forum: Adam Bruun "Agribusiness Financing: Innovative Financial Solutions"

319 views

Published on

Promoting regional trade and agribusiness development in the Pacific :
2nd PACIFIC AGRIBUSINESS FORUM

"Linking the agrifood sector to the local markets for economic growth and improved food and nutrition security"
Organised by PIPSO, CTA, IFAD, SPC and SPTO
Tanoa Tusitala Hotel, Apia, Samoa, 29th August -1st September 2016

Published in: Health & Medicine
  • Be the first to comment

  • Be the first to like this

2nd Pacific Agribusiness Forum: Adam Bruun "Agribusiness Financing: Innovative Financial Solutions"

  1. 1. “Agribusiness Financing: Innovative Financial Solutions” Adam Bruun, Head of EIB Pacific Regional Office
  2. 2. European Investment Bank The European Investment Bank (EIB): Lending to Financial Institutions for SME Financing 2nd Pacific Agribusiness Forum Agribusiness Financing: Innovative Financial Solutions Apia, 1 September 2016 Adam Bruun, Head of EIB Pacific Regional Office
  3. 3. European Investment Bank How does the EIB support Private Sector Funding? SMEs + microfinance Mid-cap enterprises Large corporates SPVs & project finance Microfinance, SME and Mid-cap credit lines to local banks Equity investments mostly through Private Equity funds Guarantee provided by the EIB to a local bank (only in specific cases) Direct loans•1 Loans intermediated by a bank•2 Loans guaranteed by a bank•3
  4. 4. European Investment Bank Risk-bearing: Impact Financing Envelope (IFE) Areas of Focus ⇒ Social and demographic challenges: Unemployment, in particular in rural areas and among women and youth, food security, social and financial exclusion, migration, post-conflict / post-disaster recovery, access to healthcare, access to education and training etc. ⇒ Environmental challenges: climate action (including access to renewable energy and energy efficiency), forestry issues, waste management, preservation of biodiversity, water supply etc. Four financing channels Potentially higher risk Transactions ⇒ Significant and measurable impact Social Impact Equity Funds Loans to Financial Intermediaries Risk-sharing Instruments Direct Financing
  5. 5. 5European Investment Bank Loans to Financial Intermediaries Social Impact Funds Risk-sharing Instruments Direct Financing - venture capital / private equity / social impact funds - managers explicitly pursue social impact goals - focus on employment, working conditions, vulnerable populations, access to healthcare, energy, education, etc. - first loss guarantees to facilitate risk- sharing operations with local financial intermediaries - supporting SMEs and small projects - help leverage senior guarantee tranches from EIB and other IFIs / DFIs - local currency loans in economically deprived countries - beneficiaries: smallholder farmers, micro- enterprises and SMEs - intermediaries: commercial banks, credit cooperatives, microfinance institutions etc. - strengthened with technical assistance and advisory services - debt (and possibly equity) instruments with high developmental impact - promoted by sound, experienced investors - focus on underserved sectors such as agriculture, private health and education IFE Instruments
  6. 6. 6European Investment Bank The Caribbean and Pacific Impact Finance Facility (CPIFF) Financial intermediaries -Microfinance institutions -Downscaling banks -Wholesale funder of MFIs Eligible clients with loans < EUR 50,000: -Micro and small enterprises -Low income households with small scale impact projects LENDING FACILITY 40 m EUR TECHNICAL ASSISTANCE FACILITY Senior debt 3- 7 years with 1-2 year grace period Unsecured Local currency, EUR and USD Fixed interest rate Tailored capacity building Financial education Mentoring
  7. 7. 7European Investment Bank CPIFF Requirements • As a rule: – loans to eligible final beneficiaries shall not exceed EUR 50,000 – EIB loan will not exceed 50% of MFI’s equity – EIB loan will finance up to 50% of the eligible loan portfolio • Qualitative requirements: – Endorsement of client protection principles and commitment to gradually comply – Satisfactory AML/CFT policy in place – Exclusion list of sectors to be applied – Regular reporting on portfolio results indicators
  8. 8. European Investment Bank EIB in the Pacific Adam Bruun Head of Regional Office tel +(61 2) 8211 0536 email: a.bruun@eib.org Katrin Bock Business Analyst tel +(61 2) 8211 0532 email: k.bock@eib.org European Investment Bank Pacific Regional Office Level 25, 88 Phillip Street SYDNEY NSW 2000 Australia Thank you!
  9. 9. Example: ACP Smallholder Farming 9 A joint initiative of EIB and IFAD to support smallholder farming activities in ACP countries Building on pilot projects carried out by IFAD, with the objective of providing medium to long-term local and foreign currency funding (currently very scarce) 5-8 countries targeted, including Malawi, Mozambique, Ethiopia, Nigeria, Rwanda Amount: up to EUR 50m Support to up to 100,000 smallholder farmers over 2014-20. European Investment Bank
  10. 10. 10European Investment Bank Cotonou Agreement: Resources and Amounts Investment Facility (IF) revolving fund * Instruments also available under IF EIB Own Resources European Development Fund – EDF (EU Member States’ budgetary funds) Amounts available under 11th EDF 2014-2020 ⇒ ACPs EUR 634 m ⇒ OCTs EUR 5 m ⇒ ACPs up to EUR 2,500 m ⇒ OCTs up to EUR 100 m • Senior loans* • Intermediated loans* • Widely traded currencies • Interest rate subsidies • Technical Assistance Total capital endowment under 9th , 10th and 11th EDFs ⇒ ACPs EUR 3,637 m° ⇒ OCTs EUR 48.5 m • Junior or subordinated loans • Quasi-equity funding • Equity funding • Guarantees Local currencies °Including EUR 500m ‘impact financing’ envelope

×