Presentation by James Ranaivoson at the Global Landscapes Forum 2015, in Paris, France alongside COP21. For more information go to: www.landscapes.org.

2. Global Landscapes Forum
Mobilising Finance for Integrated Landscape Initiatives:
Three Scalable Financial Instruments
Paris, 6 December 2015
James RANAIVOSON
06/12/2

3. EIB at a glance
 2014 Highlights :
 EIB loan/investment signatures: EUR 77.0bn; EIF signatures : EUR 3.3bn
 EIB Loan/Investment volume: (i) Innovation & Skills: EUR 14.7bn; (ii) Smaller
Enterprises: EUR 25.5bn; (iii) Strategic Infrastructure: EUR 20.6bn; (iv) Climate
Action: EUR 19.1bn; (v) Outside EU: EUR 7.9bn ( overlap in these figures)
 Borrowing volume in international capital markets: EUR 61.6bn including
Green Bonds issuance (Climate Awareness Bond-CAB programme): EUR 4.3bn
 Own funds: EUR 60.6bn; Basel III capital adequacy ratio of 23.7%
The European Investment Bank (EIB) is the European Union’s bank. Owned by the 28 EU Member States, the EIB
provides finance and expertise for sound and sustainable investment projects in over 160 countries. It is the world’s
largest multilateral borrower and lender by volume.
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 2015?
 Lending target: EUR 71bn +/-10%
 Borrowing programme: EUR 60bn with authorisation up to EUR 65bn
 Balance-sheet of EUR 574bn mid-2015
 However, implementing agent of the European Fund for Strategic Investments
(EFSI)-Juncker Plan: mobilise EUR 315bn for 2015-2017 in order to address the EU’s
low economic growth and challenges in terms of competitiveness and high
unemployment, with EUR 49bn from EIB and EUR 12bn from EIF.

4. EIB Climate Action Signed Operations
2008 2009 2010 2011 2012 2013 2014
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Adaptation Other & miscellaneous** Transport RD & I Energy efficiency Renewable Energy
EUR m
2008 2009 2010 2011 2012 2013 2014
Total* 9,771 16,691 20,513 18,496 13,284 18,982 19,125
*2008-2011 EIB + other funds - from 2012 only EIB resources
**including Afforestation, Forest Management, Waste and Wastewater
Climate action is a key priority for the EIB with a minimum 25% of total lending dedicated for per year.
Not taken in account in these figures: EIB lends roughly EUR 1 bn p.a. for sustainable agriculture projects and EUR 4 bn
p.a. for water projects
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5. .Sustainable agriculture, livestock,
aquaculture
Management of Ecosystem
Services: Fire Prevention,
Erosion Control, Air Control, Noise
Regulation, Endangered Species,
Pollination, Water Purification, Soil
nutrients etc.
.Sustainable Forest Plantation
.Afforestation/Reforestation
.Agroforestry, farming conservation
with nature-based actions
.Pro-Biodiversity Businesses inc. “Green”
Production, Ecotourism, Research
.Forest Conservation,
.Restoration of Natural Assets
on Private or Public Lands
Public goodsPrivate assets
Land use asset classes
Nature of outputs
Available Financing InstrumentsDirect Equity/”Pari
passu” Equity
Funds
.Senior or Mezz
Loans
.Equity/VC or Seed Funds
.Secured Loans
.Layered Equity/Debt Funds
.Loans to Public Sector
.Interest Rate Blending
.Grants
An EIB Perspective for Landscape Initiative / Land Use Projects
<------------------------------------------------------------- Green Bonds? --------------------------------------------------------->
.”Pari passu” or Layered
Equity/Debt Funds with
or without activation of
revenues (carbon, PES,
offsets…)
European Investment Bank
.Green Infrastructure
Investors or “providers” of finance Governments
Private funds, Institutional & Impact Investors, Banks, VC Funds, Industrial Investors, Donors-Philanthropists
< ---------------------------------------- EIB & other DFIs, Some Impact Investors -------------------------------- >
5
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6. EIB Financing Instruments
 The EIB has, to its disposal, an extensive range of instruments to finance
public and private sectors at investment and sub-investment grades of risk
EIB lending instrument
for Investment Grade
operations
Special Activities
for low and sub
investment Grade
operations
Financing projects
with corporate loans
Project
Project finance with
direct project risk
First-loss features
allowing EIB to
undertaking higher
(equity or debt) risk
Equity through
Funds
Intermediated Loans
Banks
Public Sector
Financing
European Investment Bank Group 6
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7. Climate Finance Products (1)
 “Pari passu” investments in Infrastructure Funds:
 EIB focuses on funds privileging “greenfield” assets instead of “operating”
assets
 EOY 2014: 34 investments (29 inside EU, 5 outside) – EOY 2015? > 40
 Sectors: renewable energy, energy efficiency, PPP transport & communication
and social infrastructure, forestry (plantation, conservation), land
decontamination and regeneration, pro-biodiversity businesses
 EUR 1.1bn of EIB commitment participations for funds targeting EUR 11.3bn
aggregate commitments from all investors
 (Co-investment) catalytic effect = 6x ;
(Project costs) multiplier effect = 20x
 EIB is/will be invested in:
 Dasos Timberland funds, Eco-Enterprises II, Althelia, Ginkgo funds,
Brownfields Regeneration, African Sustainable Fund, Arbaro
 Althelia: activation of revenues with REDD+ carbon credits + partial guarantee
from USAID to offset the forest carbon price risk

8. Climate Finance Products (2)
 Funds of funds:
 Global Energy Efficiency and Renewable Energy Fund (GEEREF):
EUR 112m seed funding from EU, Germany and Norway in 2008 that assume a first-loss layer…
…allowing to leverage some EUR 110m from private investors;
up to date invested in a total of 20+ funds investing in small projects in Africa, Caribbean and Pacific,
Latin America and non-EU Eastern Europe.
 Layered-risk funds:
 Green for Growth Fund (GGF)
 European Energy Efficiency Fund
(EEEF)
 Global Climate Partnership Fund
(GCPF)
 eco.business Fund?

9. Climate Finance Products (3)
 EU-EIB Joint Facility Initiatives with EC LIFE budget:
 Private Finance for Energy Efficiency investments (PF4EE):
 PF4EE – one segment of the EIB’s wider “DEEP Green” initiative for energy
efficiency
 credit risk protection by EU budget (EUR 80m leveraging project costs
of EUR 500m);
 Natural Capital Financing Facility (NCFF) :
 EU-28 pipeline of projects, testing financing options (direct loans,
intermediated loans, investments through private equity funds) for
projects in:
 nature-based climate adaptation
 green infrastructure
 payment for ecosystem services
 biodiversity offsets / compensation
 pro-biodiversity businesses

10. The Natural Capital Financing Facility (NCFF)
DIRECT INVESTMENTS IN
PROJECTS
INTERMEDIATED INVESTMENTS:
Private Equity Funds,
Credit Lines to Banks
FINANCIAL INSTRUMENTS
EUR 100-125m  EUR 50m First Loss for EIB
TECHNICAL ASSISTANCE
EUR 10m
NATURAL CAPITAL FINANCING FACILITY
LIFE
Environment / Climate
Project
level
Co-investors
private and/or
public
Investments
EIB
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11. Climate Finance Products (4)
 EIB investing in bonds or guaranteeing bond/securitisation structures:
 Project Bond Initiative (PBI) providing partial credit enhancement to large EU-28
infrastructure projects – transport, energy so far - in order to attract capital market
investors, with EIB investing in subordinated tranches or enhance the credit quality of
senior or subordinated tranches
Project
Bonds
PBCE up to 20%
of total Project
Bond issue
Infrastructure
Project
Company
(eg. PPP/PFI)
Equity
Project
Bond
Investors
PBCE

12. Climate Finance Products (5)
 EIB investing in mini-bonds structure (for water infrastructure in Veneto-
Italy):
 No access to capital markets
 Difficult to access bank financing for long maturities
 No access to EIB direct lending given the small size and low rating
 Complements EIB’s product portfolio by adding a new instrument to finance small and medium
size utilities
 Can be replicated for other regions, different countries or other sectors (e.g. waste)
 Catalytic effect: interesting product for institutional investors
HYDRO
SPV 130/99
Issuer 1
Issuer 2
……….
Issuer 9
Issuance of Bonds
Subscription price
Remuneration and
repayment of Bonds
Issuance of Notes
Subscription price
Interest and principal on
the Notes
Liquidity and credit support on
the Notes
EIB
+
Investors
Cash reserve
(20%)Veneto
Sviluppo
Liquidity and credit
support on the Notes

13. Green Bond Issuance
Outstanding environmental bonds
issued by MDBs (size > USD 100m)^
^Source: market data collected by Credit Agricole CIB; as of 27 April 2015
ADB
4%
AFDB
4%
EBRD
1%
EIB
45%
IBRD
26%
IFC
15%
NIB
5%
 The Climate Awareness Bond (CAB) Programme so far allocates its proceeds to
fund Renewable Energy and Energy Efficiency projects.
 CAB issuance to date: > EUR 10bn equivalent in 11 currencies
 EUR CAB due 11/2019 : largest green bond in the market at EUR 3bn
EIB CAB issuance by currency*
EUR; 54%
GBP; 14%
SEK; 11%
USD; 9%
ZAR; 3%
CHF; 3%
AUD; 2% BRL; 2% TRY; 1%JPY; 0%
*As of 23 April 2015
European Investment Bank Group
06/12/2

14. Thank you for your attention!
For further details or information kindly contact:
 Christopher KNOWLES c.knowles@eib.org
 Cyrille ARNOULD (GEEREF) c.arnould@eib.org
 Enrico CANU (Funds/Mini-bonds Structure) e.canu@eib.org
 Manuel DUENAS (PF4EE) m.duenas@eib.org
 Katarina MALMNAS (NCFF) k.malmnaes@eib.org
 Cormac MURPHY (PBI) c.murphy@eib.org
 James RANAIVOSON (Funds/NCFF/Bonds)j.ranaivoson@eib.org
 Peter MUNRO (CAB) p.munro@eib.org
 General queries on EIB issuance investor.relations@eib.org

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