The European Investment Bank in Israel

Tel AvivJuly 2018

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Capital breakdown

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3

The EIB: the EU bank

Largest multilateral lender and

borrower in the world

Shareholders: 28 EU Member States

HQ in Luxembourg with 40 local

offices

Around 3000 staff (finance

professionals, but also engineers,

sector economists and socio-

environmental experts)

Around 450 projects each year in

over 160 countries

AAA-rated by the three major rating

agencies

EIB Offices in the European Union

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EIB Offices outside the EU

18/07/2018European Investment Bank 5

Raising money on the capital markets

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Europe

Asia

Middle East and Africa

Americas

66%

21%12%

56.4bn

1%

EUR

in 2017

Scale of bond issuance – largest supranational bank

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0

50

100

150

200

250

300

Italy France UK** Germany Spain EIB Netherlands Belgium Austria Portugal Finland

2017

2018 (e)

EU

R b

n

… and compares with that

of certain EU governments

* Fiscal years from 1 July to 30 June

** Gross financing requirement for FY2016-17 / 2017-18

Source: Barclays research/ best efforts estimates as of 19 January 2018

Data collated from a mixture of official reports and bond market analysis systems such as Dealogic

0

20

40

60

80

EIB IBRD -WorldBank*

ADB IADB IFC* NIB AfDB EBRD

2017

2018 (e)Volume of issuance is larger

than all other supranational

banks…

EU

R b

n

EIB Group financing in 2017: EUR 78.16bn

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SignaturesEFTA &

Enlargement Countries

EUR 1.62bn

Eastern Neighbours

EUR

0.88bn

Africa, Caribbean,

Pacific, South Africa

EUR 1.47bn

Asia, Central and Latin America

EUR 1.99bnMediterranean

EUR 1.96bn

European Union

70.24bn

Outside EU

7.91bn

EUREUR

Total EUR 78.16bn

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Our Priorities in 2017

SMEsInfrastructureEnvironment Innovation

EUR

16.7bn

EUR

18bn

EUR

13.8bn

EUR

29.6bn

We deliver impact where it is needed

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JOBS3.9m jobs in small

businesses

HEALTH45.7m people with access to improved

health services

EDUCATION1.1m students

benefiting from EIB-financed projects

WATER23m people

benefiting from safer drinking water

TRANSPORT735m additional

passengers

ENERGY10.4m households

powered by EIB projects

URBAN572 000 households

in social and affordable housing

DIGITAL7.44m people with new or upgraded

connections

Climate finance pioneer

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EUR 19bn

for climate in 2017

USD100bn

2016-2020

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Mandates

External lending mandate: Latin America and

Asia

External lending mandate:

Latin America and Asia

Cotonou mandate: Africa,

Caribbean & Pacific

Cotonou mandate: Africa,

Caribbean & Pacific

External lending mandate:

Neighbourhood and

Partnership countries

External lending mandate:

Neighbourhood and

Partnership countries

External lending mandate:

Pre-accession countries

12

39 43

6

66

107 121 113

297

0

50

100

150

200

250

300

350

Algeria Syrian ArabRepublic

Egypt Gaza WestBanK

Jordan Morocco Israel Lebanon Tunisia

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EIB in 2015:

EUR 77.5bn

EIB Signed LoansEIB Investment per Capita in Southern Neighbourhood

EIB Investment per Sectors in Southern Neighbourhood

Loans to SMEs, 16%

Transport, 22%

Energy, 30%

Environment, 14%

Other, 17%

Southern NeighbourhoodPortfolio2007 - 2016

EUR 14.6bn

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EIB in Israel

Infrastructure and Industry

Supporting Israel’s infrastructure and industrial

modernisation

R&D

Providing financing to stimulate

Israeli research and development

Climate actionProviding support to

investment funds which foster the economic development of

the country

EIB in Israel (continued)

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Enabling private sector development, climate action and R&D

1%

18%

41%

40%

0%

R&D,18%

Others,1%

RE & EE,40%

Water and wastewater,

41%

Projects

EIB in Israel – examples

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Ashalim Plots 1 & 2

Total amount: EUR 291.1 million

.

Hadera , Sorek and Ashdod Desalination Plants

Total amount: EUR 407.2 million

Reduced greenhouse emissions in comparison with aconventional power plant

First application in Israel of an innovative technology

Support for European FDI

Long terms loans with maturities of up to 23 years

Desalination is the best supply-side solution to the Israeli water needs

The combined capacity of the three plants is 350 million m3/year

Long term loans with maturities of up to 25 years

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EIB Financial Products offered in Israel

SMEs + microfinance

MidCap enterprises

Large corporates

SPVs & project finance

Direct loans

Loans to corporates intermediated by a bank

Guaranteed loans

Guarantees

Microfinance credit lines to local banks

SME and MidCap credit lines to local banks

Portfolio guarantees provided by the EIB to a local bank (in specific cases)

Equity investments mostly through Private Equity funds

Public Sector

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EIB Financial Products offered in Israel

SMEs + microfinance

MidCap enterprises

Large corporates

SPVs & project finance

Direct loans

Loans intermediated by a bank

Guaranteed loans

Guarantees

Microfinance credit lines to local banks

SME and MidCap credit lines to local banks

Portfolio guarantees provided by the EIB to a local bank (in specific cases)

Equity investments mostly through Private Equity funds

Public Sector

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Loans for Corporates Structures

Direct loan to promoter

Borrower

Loan guaranteed by a bank

Export Credit Agency(s)/Commercial Bank(s)/

Promoter’s Group

Borrower

Loan intermediated by a bank

Borrower

Commercial Bank(s)

The EIB finances the local promoter

directly.

Loan

Loan

The EIB lends to a bank, which in

turn lends the funds to the end

customer. The commercial bank

must pass on part of the funding

advantage.

Loan

The EIB lends the funds directly to

the promoter and receives a

guarantee from a commercial bank

or (a) company(ies) belonging to

the promoter’s group.

Loan

Guarantee

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Loans for Corporates Advantages

Certification of a project's quality.Signaling Effect

Long maturities, up to 10/12 years for a corporate loan (depending on the economic life of the project) + grace

period on capital repayments (typically covering the implementation period).Maturities

EIB sector and product expertise acquired over 50 years of activity in and outside of Europe; in-house

engineers and socio-environmental reports.Expertise

Competitive interest rates (EIB's AAA funding advantage and not-for-profit institution).Pricing

Long-term partner with an objective to support sustainable economic development.Long-term

Possibility of blending: combination of EIB financing, EU grants and/or other donor resources.Blending

Possibility of political risk carve-outs on guarantees provided by commercial banks.Political Risk Carve-Outs

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EIB project cycle

EIBproject cycle

Step 1 Proposal

Step 2 Appraisal

Step 3 Approval

Step 4Signature

Step 5Disbursement

Step 6 Monitoring

and reporting

Step 7 Repayment

• Financial• Economic• Social• Environmental• Technical

assessment

• EIB Management Committee

• EIB Board of Directors

Finance contract is signed

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Eligibility criteria for obtaining EIB financing

Eligibility

be eligible under the mandate objectives for that particular country/region where the project is located

be technically sound

be financially viable

show and acceptable economic return

comply with the principles and standards adopted by the EIB in the social and environmental fields, and the EIB

procurement guidelines (available on the EIB website)

The borrower's solvency must be acceptable.Solvency

Manufacturing and distribution of arms, munitions and military equipment, tobacco manufacturing and

distribution, gambling, detention infrastructure as well as sectors that are ethically compromised and

considered to present a significant reputational risk.

Excluded Sectors

EIB finances up to 50% of project costs with a minimum EIB loan size of about EUR 15M or equivalent (smaller

loans on an exceptional basis)Financing

The project must

Development of the local private sector, in particular SMEs

Development of social and economic infrastructure

Climate change adaptation and mitigation

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Contacts

Stefan Acsinte

Loan OfficerLending Operations in EU Neighbouring Countries, Corporates

Phone: (+352) 4379-84307

email: s.acsinte@eib.org

European Investment Bank

98-100, boulevard Konrad Adenauer

L-2950 Luxembourg.

Nathalie Climence

Head of DivisionLending Operations in EU Neighbouring Countries, Corporates

Phone: (+352) 4379-86709

email: n.climence@eib.org

European Investment Bank

98-100, boulevard Konrad Adenauer

L-2950 Luxembourg.

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