The European Investment Bank (EIB) is the European Union's long-term lending institution. As a policy-driven Bank, the EIB supports EU priority objectives, notably European integration and social cohesion, through its financing operations. Its shareholders are the 27 Member States of the Union, which have jointly subscribed its capital. The EIB's Board of Governors is composed of the Finance Ministers of these States.
The EIB Group was established in 2000, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF). The EIF was established in 1994. It provides venture capital and guarantees for small and medium enterprises (SME). In June 2000, the EIF's Statutes were restructured and its shareholding structure was modified (with the European Investment Bank becoming majority shareholder) so as to endorse the role of the EIF as the exclusive vehicle for venture capital of the European Investment Bank (EIB).
The EIB is a non-profit, policy-driven public bank. The EIB operates like a development bank, raising its resources on the financial and capital markets, mainly through bond issues or other specialised capital market operations. The EIB makes long-term loans for capital investment projects (mainly fixed assets) but does not provide grants. At a European level grants are managed by the European Commission.
In 2009, some 89% of the total EIB financing of EUR 79 billion went to projects in the EU. Outside the EU, the EIB is active in over 150 countries (the pre-accession countries of South-East Europe, the Mediterranean partner countries, the African, Caribbean and Pacific countries, Asia and Latin America, and Russia and other neighbours to the East), working to implement the financial pillar of EU external cooperation and development policies (private sector development, infrastructure development, security of energy supply, and environmental sustainability).
FINANCING OBJECTIVES OF THE EIB
Within the EU the EIB has 6 priority objectives for its lending activity which are set out in the Bank’s business plan, the Corporate Operational Plan (COP).
- Cohesion and Convergence
- Support for small and medium-sized enterprises (SMEs)
- Environmental sustainability
- Implementation of the Innovation 2010 Initiative (i2i)
- Development of Trans-European Networks of transport and energy (TENs)
- Sustainable, competitive and secure energy
COUNTRIES IS WHERE THE EIB IS ACTIVE:
About 90% of EIB financing goes to projects located within the European Union. Outside the EU EIB lending is based on EU external cooperation and development policies.
Candidate and Potential Candidate countries in the Enlargement region
Mediterranean Neighbourhood; Russia and Eastern Neighbours
Africa, Pacific and Caribbean (ACP); Republic of South Africa
Asia and Latin America (ALA)
Lending under these mandates focuses on:
Private sector development
Security of energy supply
WHO CAN BENEFIT FROM AN EIB LOAN:
The EIB's clients are public and private sector bodies and enterprises. The project promoted by the public or private client must be in line with the eligibility criteria of the EIB and be economically and financially sound. As a rule, the Bank lends up to 50% of the capital required for a project.
PRODUCTS AND SERVICES:
The EIB offers five main services to clients:
Where is European Investment Bank