ANNOUNCEMENT 19 Dec 2017

In December 2017, the European Investment Bank (EIB) signed the first agreement under the Renewable Energy Risk Sharing France initiative. The EIB financing will partially be guaranteed by the European Fund for Strategic Investment (EFSI).

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Investment Bank, Financed Projects, RENEWABLE ENERGY RISK SHARING FRANCE: https://www.eib.org/en/projects/loan/loan/20150465
The European Investment Bank, Project summary: https://www.eib.org/en/projects/pipelines/pipeline/20150465
EFSO Operation Scoreboard: https://www.eib.org/attachments/scoreboards/86764554.pdf
EFSI project list: https://www.eib.org/en/efsi/efsi-projects/index.htm
European Commission (13 January 2015): The Investment Plan for Europe: Questions and Answers: http://europa.eu/rapid/press-release_MEMO-15-3223_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at: http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
Instituto de Crédito Oficial: https://www.ico.es/en/web/ico_en/mission-and-functions

Inception date: 19 Dec 2017 | Removal date: open ended

State loan

The European Investment Bank (EIB) approved financing for the Renewable Energy Risk Sharing France initiative having a total value of EUR 1125 million (approx. USD 1329.8 million). The initiative supports, through acceptable banks, the implementation of renewable energy projects mainly carried out by private final beneficiaries in France.

Under the Renewable Energy Risk Sharing France initiative, the EIB offers local banks co-financing of projects focussed on renewable energy projects in France with a focus on "onshore wind, solar photovoltaics (PV), geothermal, biomass and small hydropower". The co-financing is provided by "combing unfunded, linked, risk-sharing agreements and standard intermediated loan".

On 19 December 2017, the first agreements were signed with such banks. The last agreement under the initiative was signed on 11 December 2018. In November 2018, the first agreements under the Renewable Energy Risk Sharing France II initiative were signed, see related state act. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 19 Dec 2017 | Removal date: open ended

Loan guarantee

The EIB's approved financing for the Renewable Energy Risk Sharing France initiative was partially issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 1125 million with EFSI covering EUR 300 million (approx. USD 354.6 million). The initiative supports, through acceptable banks, the implementation of renewable energy projects mainly carried out by private final beneficiaries in France.

The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe. The EIB has designated EUR 7.5 billion of its capital for lending to European projects with a higher risk profile than usually taken on by the bank. To compensate for the increased lending risk, the European Commission has agreed to fully guarantee all lending under the EFSI up to a budget of EUR 26 billion. The loan described was issued under the EFSI and thus benefits from a full guarantee through the EU budget.

EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.

As described in the European Commission's Fact Sheet from 13 January 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative [i.e. the EFSI] will benefit from the EIB’s strong credit standing that enables funding at favourable conditions and across maturities".