Bulgaria: EIB Group Survey on investment in Bulgaria presented at conference in Sofia

Source: European Investment Bank

Investment gaps persist despite strong, but mainly consumption-driven, economic growth in recent years
Only 64% of firms made investments in the last financial year compared to 87% EU-wide
The lack of workforce with relevant skills and uncertainty about the future are the main barriers to investment
The share of finance-constrained firms in Bulgaria is among the highest in the EU, which means most companies rely on internal sources to support their development  
The European Investment Bank (EIB) held today a conference in Sofia in partnership with the Chambers of Commerce of Austria, France, Germany, Greece and Italy. At the event, the 2018 results of the annual EIB Investment and Investment Finance Survey (EIBIS) were presented, which, together with the EIB Investment Report, provides an overview of the cyclical and structural dynamics behind investment in Europe.
Head of EIB’s Division, Economic Studies Pedro de Lima commented: “the EIB Investment Survey (EIBIS) sends a clear message:  despite positive economic growth in Bulgaria, limiting factors persist, such as insufficient investment by firms, mainly caused by a shortage of skilled labour, and uncertainty about the future. To keep a sustainable growth path, Bulgaria has to upscale its growth model. It needs to create a stable and business-friendly environment for its firms and entrepreneurs while establishing incentives for further investment in intangibles and innovation, building on the existing pockets of excellence. The conclusions of the unique EIBIS survey help us to understand better how to address the needs of businesses in Bulgaria and how the EU bank can play a role in facilitating access to finance”.
The EIB Group Survey on Investment and Investment Finance (EIBIS) provides unique insights into Bulgarian firms’ investment activity, their plans and views on what holds back investment. Based on its findings, the Sofia conference focused on a broader debate on the capacity of Bulgarian firms to invest and innovate, the availability of financing sources for investments and the role of EIB financial instruments in supporting long-term investment. The topics of the discussion were related to Bulgaria’s options to improve its growth and convergence prospects.
EIBIS data for 2018 confirms observations from the previous two years regarding low corporate investment activity. Bulgaria has one of the highest levels of non-investing firms in the EU (only 64% of firms invested in the last financial year compared to 87% EU-wide). Nearly a fifth of Bulgarian firms assess their investment over the past three years as insufficient. As a result, the quality of corporate fiscal assets is relatively low:  the share of state-of-the art machinery and equipment of Bulgarian firms is only half of the EU average.
Bulgarian firms are less optimistic about investment in 2018 than they were in 2017 and their investment plans are centered on the replacement of tangible assets. Investment in intangible assets is well below the EU level (22% versus 36%). The lower share of investment in intangible assets reflects the low share of innovative companies in the country. A closer look at firms’ innovation activity in Bulgaria shows that innovative firms rely mostly on adopting innovation rather than developing it.
The obstacle to investment mentioned most often in Bulgaria (84% of all firms) is the lack of staff with relevant skills. Uncertainty about the future is the second-largest obstacle. Obtaining external finance also remains a difficulty for Bulgarian firms. The share of finance-constrained companies in Bulgaria is among the highest in the EU. As a result, reliance on internal financing sources remains high compared to EU peers. 
This country overview presents selected findings based on interviews with 476 firms in Bulgaria in April-August 2018. The survey is part of the annual EIB Group Survey on Investment and Investment Finance (EIBIS), which is an EU-wide survey of 12 500 firms that gathers quantitative information on investment activities by both SMEs and larger corporates, their financing requirements and the difficulties they face.

MIL OSI

Croatia: Investment Plan for Europe – EIB supports Croatian Rimac Automobili in development of high performance electric vehicles and components

Source: European Investment Bank

EIB and Croatian Rimac Automobili sign EUR 30 million loan for investment in research and development of electric vehicles and related components;
Transaction is guaranteed by the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe
Rimac will scale up its activities, accelerate investments into RDI, industrialisation and ramp-up its production capabilities
The European Investment Bank announced that it will provide EUR 30 million loan to the innovative car company Rimac Automobili. The financing will allow the company to further develop its electric driving technologies. It will also support the company`s transformation into a technology solutions provider for electric vehicles and a industrial-scale producer of components for the global automotive sector.
The financing comes in the form of growth capital loan, under the European Growth Finance Facility (EGFF), a mechanism launched in 2016.
Enabled by a guarantee form the EU budget, under the Investment plan for Europe (the Junker plan) the loan will allow Rimac Automobili to continue its strong growth. The company has doubled in size over the last 12 months, now employing over 450 people with the majority of them in R&D. Rimac’s goal is to become, one of the major employers and exporters in Croatia.  Rimac will also use the loan to accelerate its research and development and increase sales and marketing effort to enable planned expansion into Asia and Europe.
Vice president of the European Investment Bank Dario Scannapieco said: “Today EIB partners with a company that writes the history of the global automotive industry. EIB is proud to support job creation, support the local economy and Croatian exports, as well as transition to environment friendly transport, and advance the European science, research and development. Rimac is a great story of success build on determination, vision and innovation and one of the reasons why the EIB exists – to support trail-blazing, innovative companies capable of developing not just themselves but their industries and their communities too.”
European Commissioner for Transport Violeta Bulc said: “Decarbonisation is at the heart of our transport policy. I welcome this new project under the Juncker Plan, which will help develop innovative solutions for electro-mobility in Europe and stimulate the demand for zero-emission vehicles, alongside our efforts to deploy the alternative fuels infrastructure. Coupling decarbonisation and innovation with job creation is truly a win-win for all.”
Founder and CEO of Rimac Automobili Mate Rimac said: “It is a long and difficult road to build an automotive and technology company, especially in a country where nothing similar has been done. Access to capital was very difficult for us in the early days, with investment activity in this part of Europe being quite low. However, based on our results and accomplishments, more and more international strategic partners such as Porsche, are ready to invest in the company. We welcome EIB’s initiative to enable later-stage startups to have an alternative to traditional equity investment. This funding will help us accelerate our efforts and scale faster and bigger.”

MIL OSI

Croatia: EIB commits EUR 300 million to cohesion projects

Source: European Investment Bank

EIB loan will be used as national contribution in EU funded priority projects in Croatia;
Loan enables Croatia to implement projects worth EUR 8.1 billion in areas like infrastructure, environment and research and development
This is the second portion of a EUR 600 million loan. The  first portion disbursed in 2016 helped finance a large array of small, medium and larger projects in the areas of transport, social infrastructure, environment and urban areas in the country
Croatia will receive EUR 300 million from the European Investment Bank (EIB) in the second, and final, portion of a EUR 600 million loan designed to speed up the implementation and ensure the success of Cohesion Policy projects in the country.  Croatia will use the EIB loan as its national contributions in EU-funded projects. The financing can also be used to pre-finance projects. The loan will increase the number of EU-funded projects implemented throughout the country to improve economic and social cohesion and promote the sustainable development of Croatia.
The EIB financing comes in the form of a Structural Programme Loan (SPL), a dedicated loan product for co-financing schemes backed by EU structural funds. The Croatian Government can also use these funds to finance schemes that would be too small to qualify for direct EIB financing.
EIB Vice President Dario Scannapieco and Croatian Finance Minister Zdravko Marić signed the Finance Contract relating to the second portion on December 7, in Zagreb.
Vice President of the EIB Mr. Dario Scannapieco said: “EIB is committed to support reduction of economic and social disparities in the EU and to promote sustainable development. The EIB loan allows Croatia to apply for EUR 8.1 billion EU funds available to Croatia to boost national research, innovation and infrastructure development. As the EU bank, the EIB is proud to support the economic and social development of Croatia through Structural Program Loans. The results of the first portion are an excellent example of the positive impact the EU has on its citizen’s.”
The first portion of the loan, signed in 2015, helped the Croatian government to kick off many projects. These included, as example: development of the modernization of Zapresic – Zabok railroad; waste water treatment facilities on the island of Krk; development and improvements of water-communal infrastructure in Vukovar, Petrinja, Rovinj, Zupanja, Vodice and Šibenik; construction and equipping of the Hospital for the Palliative Care Patients of the Varazdin General Hospital in Novi Marof, student housing in Virovitica, Vukovar, and Osijek, and E-schools pilot project.
Minister of Finance of the Republic of Croatia Mr. Zdravko Marić said: “The Croatian Government appreciates the EIB Group as being one of the first and most prominent partners in providing cofinancing of the EU funds. This loan represents a continuation of a successful project of co-financing EU funded priority projects in Croatia and signals strong commitment of the Croatian Government in boosting national economy by enhancing utilization of EU funds. The design of this instrument leverages achieving these goals through its flexibility, financial attractiveness and its substitution of domestic budget component. We always support EIB as the EU bank which further fosters economic and social development of the EU and its member states. In Croatia, such an important impact is witnessed through a high volume of lending to both – public and private sector –  amounting to 6.3 billion euros.”
The European Union dedicated EUR 10.7 billion to Croatia as a part of the Union`s structural and investment funds for 2014-2020. To date, Croatia contracted EUR 6.3 billion, a sum expected to increase with this EIB loan.
European Commissioner for Regional Policy Ms. Corina Crețu said: “Cohesion Policy programmes in Croatia will have lasting, positive effects on the economy and in the everyday lives of Croatian citizens. It is essential that the appropriate national co-financing is provided for these programmes to make them successful and to get good projects off the ground quickly. This is what this EIB loan helps to assure and I’m glad to see its second portion committed today.”
Loan covers national co-financing contributions in line with the Partnership Agreement and the “Competitiveness and Cohesion” Operational Programme (“OPCC”) in the areas of transport, energy, the environment, health, research and development, infrastructure, nature protection, social infrastructure, ICT, urban regeneration, water and waste management. The EIB loan offers long-term co-financing on the most attractive terms for OPCC projects throughout Croatia.   The Ministry of Regional Development and EU Funds manages OPCC, and is the Promoter of the loan.
Minister of Regional Development and EU Funds of the Republic of Croatia Ms. Gabrijela Žalac said: “Reports on the absorption of EU structural funds at the end of 2018 demonstrate an increase of contracted amounts to 62% and the level of amounts paid to beneficiaries to 13%. Funds from the first part of the loan were allocated to projects in sectors of transport, environment protection, health and education infrastructure, research and development, as well as ICT services. In order to fully absorb the funds available to the Republic of Croatia, a challenging task is still ahead of us, in which the EIB is our most valuable partner. The second part of the loan is necessary for a successful continuation of utilization of EU structural funds and achievement of Cohesion Policy goals, for the purpose of a balanced regional development of the Republic of Croatia.”

MIL OSI

Croatian Government contributes EUR 500,000 for Bosnia and Herzegovina and other Western Balkans countries to tackle migration challenges and create jobs

Source: European Investment Bank

Total contributions for the Economic Resilience Initiative (ERI) now close to EUR 130 million; 36 projects approved under the Initiative representing EUR 3.7 billion of financing;
Over 160,000 jobs to be sustained in smaller businesses and midcaps enabled by lending via partner banks;
EIB contributed to ERI with technical assistance and advisory services worth EUR 90 million
The European Investment Bank (EIB) will receive a EUR 500,000 contribution for its Economic Resilience Initiative (ERI) from the Republic of Croatia; the contribution will support ERI job creation and infrastructure investments in Bosnia and Herzegovina and/or other Western Balkan countries.  
ERI supports countries in the EU’s Southern Neighborhood and Western Balkans to tackle migration and other challenges by stimulating investments in jobs creation and services like energy, transport, water, sanitation and education.  In doing so, the EIB initiative increases economic and social resilience of target countries and helps them to better deal with future crises and shocks, while maintaining stronger growth.
The Initiative substantially increases the EIB and the EU support to two target regions. The EIB will provide an additional EUR 6 billion of financing under ERI, expected to deliver EUR 15 billion of new investments by 2020.  Many of these priority investments will be in sectors and with clients the Bank had previously found difficult to serve, for example because of the higher-risk nature of the operations, despite high socio-economic returns.
To date EIB approved 36 projects under the Initiative, representing financing of some EUR 3.7 billion. A bit more than half of that went into private sector development. More than 3,000 loans are provided to smaller businesses and midcaps in target countries, helping them to sustain 160,000 jobs via small businesses and midcaps alone.
With the support from the EU Member States, the ERI offers additional concessional finance, enhanced support to the private sector and impact finance for these regions up to 2020. To date, Croatia, Italy, Luxembourg, Poland, Slovakia, the United Kingdom, Lithuania and Slovenia pledged together close to EUR 130 million for ERI.
EIB Vice President Dario Scannapieco said: “EIB is happy with the positive response form the EU member states on our Economic Resilience Initiative. This is a true sign of European solidarity with our neighbors.  With member state support, we will help increase resilience and tackle migration-related issues, strengthen people, economies and improve infrastructure in countries to prepare for future crises and shocks. We will act where and when it really matters and help our neighbors and the EU in areas that matter the most for the people – jobs, economic security, education, health or access to clean water.” 
Minister of Finance of the Republic of Croatia Zdravko Marić said: “Croatia is among the first EU Member States to sign a Contribution Agreement for the European Investment Bank’s Economic Resilience Initiative (ERI) Fund. Our contribution to the Economic Resilience Initiative is a clear signal of Croatia`s commitment to the faster development of the region and our readiness to work together in the European family and join resources with our European partners to help mitigate negative effects of the migrant crisis. The Republic of Croatia deems important to back the Economic Resilience Initiative with the purpose of alleviating migratory pressures in transit countries. ERI funds will be invested in water supply, energy, education, health and sanitation, urban infrastructure, as well as SME support in order to enhance employment opportunities and social inclusion – all of which are the goals promoted by Croatia in the international development community. The countries eligible under ERI are especially important as neighboring countries and are also highly positioned among the priorities of Croatia’s development cooperation strategy.”

MIL OSI

О критериях формирования Списка субъектов Российской Федерации и муниципальных образований в целях рефинансирования (07.12.2018)

Source: Central Bank of the Russian Federation

Информация
О критериях формирования Списка субъектов Российской Федерации и муниципальных образований в целях рефинансирования
В целях унификации требований к кредитному качеству активов, принимаемых в обеспечение по операциям предоставления ликвидности, Банк России принял решение об изменении критериев формирования Списка субъектов Российской Федерации и муниципальных образований, которые могут являться лицами, обязанными по кредитным договорам, права требования по которым могут быть включены в пул обеспечения кредитов Банка России (далее — Список).
С 1 июля 2019 года Список будет формироваться из числа субъектов Российской Федерации и муниципальных образований, имеющих кредитные рейтинги на уровне не ниже «A(RU)» по классификации кредитного рейтингового агентства АКРА (АО) или «ruA» по классификации кредитного рейтингового агентства АО «Эксперт РА»1.
Помимо наличия у субъектов Российской Федерации и муниципальных образований указанных кредитных рейтингов, при принятии решения о включении в Список также будут учитываться результаты проводимой Банком России оценки их кредитного качества.
1 С 1 января 2018 года требования к минимальному уровню кредитного рейтинга выпуска (эмитента) облигаций (в том числе облигаций субъектов Российской Федерации и муниципальных образований), включаемых в Ломбардный список Банка России, установлены на уровне не ниже «А(RU)» / «ruA» по классификации кредитных рейтинговых агентств АКРА (АО) / АО «Эксперт РА» соответственно (пресс-релиз Банка России от 20 октября 2017 года «О минимальном уровне кредитного рейтинга для включения ценных бумаг в Ломбардный список Банка России»).

7 декабря 2018 года
При использовании материала ссылка на Пресс-службу Банка России обязательна.

MIL OSI

Bank of Russia Bulletin released (05.12.2018)

Source: Central Bank of the Russian Federation in English

Information Notice
Bank of Russia Bulletin released
Bank of Russia Bulletin No. 86 (2040) of 5 December 2018 has been released.
The Credit Institutions section lists credit institutions complying with the requirements set forth by Russian Government resolutions as of 1 November 2018.
The Bulletin publishes the following Bank of Russia orders:
No. OD-3048, dated 26.11.2018, on amending Appendix 1 to Bank of Russia Order No. OD-2788, dated 25 October 2018;
No. OD-3049, dated 26.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2716, dated 19 October 2018;
No. OD-3050, dated 26.11.2018, on amending Appendix 1 to Bank of Russia Order No. OD-2786, dated 25 October 2018;
No. OD-3051, dated 26.11.2018, on amending Appendix 1 to Bank of Russia Order No. OD-2853, dated 31 October 2018;
No. OD-3052, dated 26.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2716, dated 19 October 2018;
No. OD-3066, dated 27.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2150, dated 17 August 2018;
No. OD-3075, dated 28.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2716, dated 19 October 2018;
No. OD-3076, dated 28.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2901, dated 7 November 2018;
No. OD-3090, dated 30.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2901, dated 7 November 2018.
The issue publishes the DIA’s information for the depositors of CB Moskva (PJSC) and UM-Bank LLC.
The issue presents a notice about exclusion of several banks from the register of banks participating in the compulsory deposit insurance system, following their reorganisations.
The Non-bank Financial Institutions section contains the following Bank of Russia orders:
No. OD-3057, dated 27.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2772, dated 24 October 2018;
No. OD-3058, dated 27.11.2018, on amending the Appendix to Bank of Russia Order No. OD-1690, dated 5 July 2018.
The Bulletin informs about the results of the disposal of the assets of JSC NPF Zashchita Budushchego.
The issue presents consolidated data on financial market sectors and information notices by the Bank of Russia.
The Official Documents section publishes the following materials:
Bank of Russia Instruction No. 187-I, dated 4 June 2018, ‘On the Procedure for the Bank of Russia to Make Decisions on the State Registration of a Non-governmental Pension Fund and Amendments to Its Charter; on Documents Submitted to the Bank of Russia to Obtain a Pension Provision / Pension Insurance Licence; on the Requirements for the Submission Procedure, Timeframe and Format for the Above Documents; on the Requirements for Issuing a Pension Provision / Pension Insurance Licence; on the Procedure and Timeframe for Reissuing This Licence; on the Procedure for Keeping the Register of Pension Provision / Pension Insurance Licences Issued to Non-governmental Pension Funds, and for Providing Certified Copies of Entries from this Register; on the Procedure and Conditions for Obtaining the Bank of Russia’s Approval of the Restructuring of Non-governmental Pension Funds’ (becomes effective 10 days after the official publication; posted on the Bank of Russia website on 22.11.2018);
Bank of Russia Ordinance No. 4812-U, dated 4 June 2018, ’On the Procedure for the Bank of Russia to Register Non-governmental Pension Funds’ Pension Rules, Including Pension Rules for Early Non-governmental Pension Provision, Non-governmental Pension Funds’ Insurance Rules and Amendments Thereto’ (becomes effective 10 days after the official publication; posted on the Bank of Russia website on 22.11.2018);
Bank of Russia Ordinance No. 4940-U, dated 24 October 2018, ‘On Invalidating Paragraph 7 of Clause 2.1 and Clause 2.9 of Bank of Russia Instruction No. 182-I, Dated 21 November 2017, ‘On Acceptable Combinations of Banking Operations of Non-bank Credit Institutions Conducting Deposit and Credit Operations, on Required Ratios for Non-bank Credit Institutions Conducting Deposit and Credit Operations and on the Supervision over Their Compliance by the Bank of Russia’ (becomes effective 10 days after the official publication; posted on the Bank of Russia website on 27.11.2018);
‘On Amending the Regulation on the Bank of Russia Financial Supervision Committee’, No. KFN/I1-2018, dated 28 November 2018 (becomes effective 10 days after the official publication; posted on the Bank of Russia website on 30.11.2018);
Information Letter No. IN-01-59/69, dated 28 November 2018, regarding sales of financial products.

05 December 2018
The reference to the Press Service is mandatory if you intend to use this material.

MIL OSI

Bank of Russia policy helps anchor inflation close to target

Source: Central Bank of the Russian Federation in English

The return of inflation to the target level by the end of 2018 is driven by both one-off and sustainable factors. The Bank of Russia’s policy will foster inflation anchoring at a level close to the target in the medium term. These are findings by the authors of the new issue of Talking Trends, the BoR Research and Forecasting Department’s bulletin.
Medium-term proinflationary risks are associated with the likely impact of the 2018 ruble depreciation and the upcoming VAT rate hike on inflation expectations. The bulletin authors believe that the risks of inflation outpacing 4% also prevail over a medium-term horizon because of accelerated growth in consumer lending, the state of the labour market, and volatility in financial markets.
That said, volatility in Russian financial markets has declined since the second half of September. Markets demonstrated resilience to the developments in emerging market economies, the news context of envisaged sanctions, and the November drop in oil prices. The ongoing rise in uncertainty in the global economy suggests that market confidence in monetary policy needs to be sustained.
The views and recommendations expressed in the bulletin do not necessarily reflect the official position of the Bank of Russia.
6 December 2018

MIL OSI

US Dollar/Rouble and Euro/Rouble Exchange Rates and Exchange Trade Indicators

Source: Central Bank of the Russian Federation in English

]]>
Date
Unified Trading Session
US dollar
Euro
for ‘today’ settlements
for ‘tomorrow’ settlements
for ‘today’ settlements
for ‘tomorrow’ settlements
average weighted rate (rubles/US dollar)
volume (millions of US dollars)
average weighted rate (rubles/US dollar)
volume (millions of US dollars)
average weighted rate (rubles/euro)
volume (millions of euros)
average weighted rate (rubles/euro)
volume (millions of euros)
06/12/2018
66.8815
1,177.2970
66.9258
3,259.9430
75.7132
291.2620
75.8745
425.0140
05/12/2018
66.7620
796.1760
66.7595
2,024.2560
75.6713
238.3940
75.7045
249.4600
04/12/2018
66.4077
869.0700
66.4786
2,936.5060
75.6388
249.7530
75.6929
265.6050
30/11/2018
66.6797
1,354.1150
66.7872
3,074.1800
75.7613
262.9740
75.8785
331.5520
29/11/2018
66.5584
1,250.3940
66.4877
3,899.4110
75.8127
305.2660
75.6500
410.9920

× Закрыть

MIL OSI

Ireland: EIB to back EUR 1.2 billion pan-European renewable investment through Irish NTR Fund

Source: European Investment Bank

EIB to provide EUR 84 million to support long-term investment in European renewables
Ireland designated core market for the fund
EUR 500 million equity fund, together with EUR 700 million debt expected to be deployed
First EIB backing for Irish ICAV fund to attract institutional investors and pension funds
The world’s largest international financier for renewable energy, the European Investment Bank, will today confirm its intention to back renewable energy investment across Europe in cooperation with Dublin-based NTR plc.
The EIB’s EUR 84 million backing for the NTR Renewable Energy Income Fund II is to be announced at an EIB investment conference at the Central Bank of Ireland attended by leading Irish ministers, EIB President Werner Hoyer and more than 200 business, finance and government representatives.
“We want to make Ireland a leader in responding to climate change. Being a leader means acting now, stretching ourselves and seizing the enterprise opportunities in a low carbon economy. Being a follower means the final costs of adjustment are much higher and opportunities much lower or completely lost. Harnessing clean energy is essential to this ambition and stimulating private sector funding of renewable energy projects can help drive down consumer costs and increase the pace and scale of transition to low carbon technologies.” said Richard Bruton TD, Ireland’s Minister for Communications, Climate Action and the Environment.
“I welcome the EIB’s EUR 84 million support for Irish fund NTR’s ambitious goal of backing renewable energy projects across Ireland and elsewhere in Europe in the years ahead. This new commitment reflects the European Investment Bank’s strengthened engagement to support transformational investment in cooperation with Irish partners.” added Minister Bruton.
“As world climate leaders meeting in Poland to discuss implementation of the Paris Agreement, the new EUR 84 million support for renewable energy projects across Europe by NTR demonstrates the EU Bank’s firm commitment to accelerating investment crucial for tackling climate change. Scaling up investment by harnessing support of institutional investment is crucial for global ambitions to accelerate climate action.” said Andrew McDowell, Vice President of the European Investment Bank.
“NTR’s new cooperation with the European Investment Bank reflects our shared goal of ensuring long-term investment in renewable energy projects essential for achieving Europe’s climate commitments. We welcome the EUR 84 million backing  from the EIB and look forward to working together in the years ahead.” said Dr. Rosheen McGuckian, Chief Executive Officer of NTR plc.
Broad scope reflecting renewable energy investment gap
The NTR Renewable Energy Income Fund II will support greenfield onshore wind and solar projects, as well as energy storage schemes associated with wind and solar projects. 
Energy storage remains an emerging technology and enabling renewable energy to be more effectively reflect peak demand is essential to achieve climate targets.
Crucial long-term financing for renewables
The new fund will provide long-term equity financing of over 25 years to accelerate development of small and medium sized renewable energy projects. Expansion of these projects is currently hindered by limited availability of long-term financing.
Following detailed analysis of European renewable energy investment trends, the NTR Renewable Energy Income Fund II expects to support 15-20 different renewable energy projects, representing approximately 700 MW of clean energy power generation.
Unlocking new support for renewable energy under Investment Plan for Europe
Reflecting the long-term financing of greenfield projects, EIB support for the NTR Renewable Energy Income Fund II is guaranteed by the European Fund for Strategic Investments or Juncker Plan.
First time EIB support for ICAV fund model
The EUR 84 million EIB support represents their first ever backing for investment through an Irish Collective Asset-management Vehicle or ICAV. This is a new fund structure recently developed in Ireland intended more effective and efficient and which provides a model for future long-term European focused infrastructure investment funds.
Additional commitment to the NTR Renewable Energy Income Fund II is expected from institutional investors including pension funds and insurance companies.
EIB subscription to the fund is expected in the coming weeks and financial close of the fund will take place once technical preparations with investors are complete.
Last year the European Investment Bank provided EUR 4.4 billion for investment in renewable energy projects worldwide and in May confirmed EUR 79.5 million backing for the Oweninny windfarm in Country Mayo.

MIL OSI

Towards a common language in Green Finance: progress is made at COP24 in Katowice

Source: European Investment Bank

 
The Green Finance Committee of China Society for Finance and Banking and the European Investment Bank publish a second edition of the White Paper “The Need for a Common Language in Green Finance”
Comparability and transparency are key to develop green finance as an engine driving the transition to a low-emission and climate-resilient economy
With the EU and China being two of the biggest green bond markets globally, developing compatibility between the two can set a precedent for harmonisation on a global scale
The Green Finance Committee of China Society for Finance and Banking (GFC) and the European Investment Bank (EIB) jointly released a second edition of the White Paper “The Need for a Common Language in Green Finance” during the United Nations Climate Change Conference (COP24) in Katowice, Poland. This is a further step towards a better understanding, at a global level, of the nature of investments in green projects and transparency for the international community. This increased transparency and comparability of criteria is a welcome news for capital markets and green project promoters alike, as more and more public and private issuers and investors internationally access the green bond space.
Ma Jun, Chairman of GFC and Member of the PBOC Monetary Policy Committee pointed out that greening global capital markets requires a common language for green bonds and the underlying green activities. This is increasingly important from a Chinese perspective, since the maturing national green bond market is experiencing a rapid expansion of cross-border issuance and investing. As similar trends are observed across global markets, a greater compatibility of standards is essential for seamless international integration. With the EU and China being two of the biggest green bond markets globally, developing compatibility between the two can set a precedent for harmonisation on a global scale.
Jonathan Taylor, Vice-President of the EIB, highlighted that the recent EU-China Leaders’ Statement on Climate Change and Clean Energy underlines the need for EU and China to cooperate in developing green finance to drive the transition to a low emission and climate resilient economy. The ongoing work in the series of white papers helps create the conditions for a clearer comparison and mutual compatibility between the EU and Chinese green bond standards as these standards are developed and updated in the future. This ultimately should facilitate European issuers launching green bonds in China, and vice versa.
In September 2018, EIB launched its first Sustainability Awareness Bond (SAB), which, for the first time, links allocations with objectives rather than activities. It extends EIB’s green bond accountability to areas of environmental and social sustainability other than climate, and foresees gradual expansion of eligibility to further objectives and activities in line with the developing EU legislation. The EIB plans to adopt an analogous open-ended approach also for its Climate Awareness Bonds; the new documentation could be tested with a landmark transaction – possibly EIB’s first green panda bond – in early 2019.
The White Paper summarises the progress China and the European Union (EU) have accomplished in promoting green finance standardisation in the past year and indicates tangible steps on how to continue this work in the future. The first edition (or Phase I) was published at COP 23 in Bonn last year.
The core recommendation of this second edition of the White Paper (Phase II) is, that the GFC-EIB joint research should now develop a clear translation framework (Phase III) between the soon-to-be-established China and EU green standards by the time of COP25 next year (in the area of Climate Change mitigation), while a possible EIB green panda bond issue could tie the standards together in practice. By doing so, Phase III of the GFC-EIB joint research and practice could provide the necessary clarity and demonstration effect required to internationalise the Chinese green bond market and establish a baseline for the further harmonisation of green bond and green finance standards on a global scale.
Background information:
The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond.
The European Investment Bank is active in around 160 countries. It is the world’s largest multilateral financier of climate-related investment with USD 100bn committed for climate action in the five years up to 2020 in support of the Paris Agreement. The EIB has committed at least 25% of its investments to climate change mitigation and adaptation, rising to 35% in developing countries by 2020. With EUR 19.4bn dedicated to climate action in 2017, the EIB exceeded its target for the eighth year running.
At COP24 in Katowice, EIB climate experts and senior management highlight the EIB’s broad support for climate investment in diverse sectors, announcing a number of new policy initiatives and project investments. A regularly-updated agenda of EIB events and contacts can be found here.
Join EIB at COP24: http://www.eib.org/events/eib-at-cop-24.htm

MIL OSI