The European Investment Bank (EIB) is the European Unions nonprofit long-term lending institution established in 1958 under the Treaty of Rome. As a "policy-driven bank" whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about "European integration and social cohesion". It should not be confused with the European Central Bank. The EIB is a publicly owned international financial institution and its shareholders are the member states of the European Union. Thus the member states set the banks broad policy goals and oversee the independent decision-making bodies: the Board of Governors and the Board of Directors.
The European Investment Bank was founded in Brussels in 1958 when the Treaty of Rome came into force. It relocated to Luxembourg, its current headquarters, in 1968. By 1999, it had more than 1,000 staff members, a figure that had nearly doubled by 2012; when the EIB was founded in 1958 it had 66 employees. The EIB Group was formed in 2000, comprising the EIB and the European Investment Fund (EIF), the EUs venture capital arm that provides finances and guarantees for small and medium enterprises (SMEs). The EIB is the EIFs majority shareholder, with 62% of the shares.
The total subscribed capital of the Bank was EUR 232 billion in 2012. The capital of the EIB was virtually doubled between 2007 and 2009 in response to the crisis. The EU heads of government agreed to increase paid-in capital by EUR 10 billion in June 2012, with implementation expected in early 2013. For the fiscal year 2011, EIB lent EUR 61 billion in various loan products, bringing total outstanding loans to EUR 395 billion; one-third higher than at the end of 2008. Nearly 90% of these were with EU member states with the remainder dispersed between around 150 "partner countries" (in Southern and Eastern Europe, the Mediterranean region, Africa, Asia, Latin America, the Caribbean and the Pacific). The bank uses its AAA credit rating and funds itself by raising equivalent amounts on the capital markets.
As the "Bank of the European Union", the EIB’s mission is to make a difference to the future of Europe and its partners by supporting sound investments which further EU policy goals. Although about 90 percent of projects financed by the EIB are based in EU member countries, the bank does fund projects in about 150 other countries: non-EU South- Eastern European countries, Mediterranean partner countries, ACP countries, Asian and Latin American countries, Russia and other eastern neighbors of the EU. According to the EIB, it works in these countries to implement the financial pillar of the unions external cooperation and development policies by encouraging private sector development, infrastructure development, security of energy supply and environmental sustainability.
The EIB President is the head of the Management Committee, a nine- member executive body that is responsible for the day-to-day operations of the EIB. They are "appointed by the EIBs Board of Governors, on a proposal from the Board of Directors", for a renewable six-year term. The is also the chair of the board of directors. The current EIB President is Werner Hoyer, a German politician with a doctorate in economics. He became president in January 2012. Former presidents are: Philippe Maystadt (Belgium), March 2000 – December 2011 Sir Brian Unwin (UK), April 1993 – December 1999 Ernst-Günther Bröder (Germany), August 1984 – March 1993 Yves Le Portz (France), September 1970 – July 1984 Paride Formentini (Italy), June 1959 – September 1970 Pietro Campillli (Italy), February 1958 – May 1959
The headquarters is situated at 100 Boulevard Konrad Adenauer in Kirchberg, Luxembourg. The buildings first phase was designed by British architect Sir Denys Lasdun and is one of his few works outside the UK. The EIB has offices in the different EU countries, including Athens, Belgrade, Berlin, Brussels, Bucharest, Fort-de- France, Martinique (one of Frances overseas departments); HelsinKi, Lisbon, London, Madrid, Paris, Rome, Sofia, Warsaw, Vienna, and Kiev. Outside of the EU, it has offices in Ankara, Turkey; Beijing, China; Cairo, Egypt; Dakar, Senegal; Istanbul, Turkey; Nairobi, Kenya; Pretoria, South Africa; Rabat, Morocco; Sydney, Australia; and Tunis,Tunisia. In 2007, the EIB opened a regional office in Helsinki ,located at the headquarters of the Nordic Investment Bank (NIB),with the aim of enhancing the Bank’s presence in the Baltic Sea region.
Operating strategy: To finance viable capital projects which further EU objectives To borrow on the capital markets to finance these projects Lending strategy within the EU Within the EU the EIB has six priority objectives: Cohesion and convergence (regional policy) Support for small and medium-sized enterprises Environmental sustainability Knowledge economy Development of Trans-European Networks of transport and energy Sustainable, competitive, and secure energy supply Lending strategy outside the EU Outside the EU the EIBs priority objectives for lending activity are: Private sector development Financial sector development Infrastructure development Security of energy supply Environmental sustainability EU presence