FAQ

How is the EIB governed?

The EIB is governed by the:

• Board of Governors - usually the Finance Ministers of the Member States
• Board of Directors - 28 members representing each Member State and the European Commission. There are 16 Alternates, meaning that some of these positions will be shared by groupings of States. The Board also has the right to co-opt a maximum of 6 experts (3 Directors and 3 Alternates), who will participate in the Board meetings in an advisory capacity, without voting rights.
• Management Committee - the President of the EIB and 8 Vice Presidents
• Audit Committee - is composed of six Members, appointed by the Board of Governors for a non-renewable term of office of six consecutive financial years

For further information on this and the structure of the services within the EIB, please see the EIB Organisation Structure pages on the website.

What is the EIB?

Established under the treaty of Rome in 1957 and created in 1958, 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.

What is the EIB Group?

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).

Where are the headquarters of the EIB?

The EIB is based in Luxembourg:

100, boulevard Konrad Adenauer
L-2950 Luxembourg
Tel: +352 43 79 - 1
Fax: +352 43 77 04
E-mail: info@eib.org

Map showing how to access the EIB by road.

The EIB has regional offices in a number of locations both inside and outside the EU (List of offices)

Who are the owners of the EIB Group?

The EIB is an international financial institution, a publicly owned bank. Its owners are the Member States of the European Union, who subscribe to the Bank's capital - EUR 232, 4 billion. As shareholders the Member States are represented on the Bank's main independent decision-making bodies - the Board of Governors and the Board of Directors.

The EIB is the EIF's majority shareholder (62%). Other shareholders are the European Commission (30%) and some twenty EU private banking institutions (8%).

Who is the President of the EIB?

The current President of the EIB is Werner Hoyer (Germany)

Former presidents are:

• Philippe Maystadt (BE), January 2000 - December 2011
• Sir Brian UNWIN (UK), April 1993 - December 1999
• Ernst-Günther BRÖDER (DE), August 1984 - March 1993
• Yves LE PORTZ (FR), September 1970 - July 1984
• Paride FORMENTINI (IT), June 1959 - September 1970
• Pietro CAMPILLI (IT), February 1958 - May 1959

How does the EIB differ from commercial banks?

The EIB is a non-profit, policy-driven public bank.

The EIB does not:

• take deposits
• manage savings accounts to fund its assets
• have private customers
• manage personal bank accounts
• conduct over-the-counter transactions
• provide private investment advice
• manage stock portfolios
• provide overdraft or short term lending facilities.

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.

What are the 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

The COP is a strategic document, approved by the Board of Directors, for defining medium-term policy and setting operational priorities in the light of the objectives assigned to the Bank by its Governors. It is also an instrument for ex post evaluation of the EIB's activities. The plan spans three years, although the strategic projections may be adapted during this period in order to take account of new mandates and changes in the economic climate.

In which countries is the EIB 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.

EU Mandates are:

• Pre-Accession:
  Candidate and Potential Candidate countries in the Enlargement region
• European Neighbourhood:
  Mediterranean Neighbourhood
  Russia and Eastern Neighbours
• Development:
  Africa, Pacific and Caribbean (ACP)
  Republic of South Africa
• Economic Cooperation:
  Asia and Latin America (ALA)

Lending under these mandates focuses on:

• Private sector development
• Infrastructure development
• Security of energy supply
• Environmental sustainability

What are the benefits of an EIB loan?

The EIB is able to raise funds at advantageous rates due to:

• An excellent AAA credit reputation
• The Bank's position as a major international borrower on the financial markets.

Being a non-profit-motivated institution, the Bank passes on the benefits to its clients in the form of loans at fine rates.

Interest rates are based on EIB's borrowing cost with a small margin to cover administrative expenses and other costs.

The EIB can offer large loan amounts over long maturities in practically all major currencies.

The EIB never finances more than 50% of the total project cost, but the involvement of the EIB can act as a catalyst, encouraging other banks, financial institutions and the private sector to participate in an investment.

How does the EIB fund its lending?

The EIB is financially independent. It operates on a broadly self-financing basis, raising resources through bond-issues and other debt instruments, mostly publicly quoted on exchanges around the world. The EIB is one of the largest non-sovereign borrowers on the EU bond market. For further information please see the Investor Relations pages on the EIB website.

Which currencies does the EIB work with?

The EIB Group's financial accounts are in EUR. However, promoters borrowing from the EIB may choose any of the currencies in which the Bank works, including:

• Euro (EUR)
• UK Sterling (GBP)
• Swedish and Danish Crowns (SEK and DKK)
• Local currencies, in particular in the accession countries
• US Dollar (USD)
• Swiss Franc (CHF)
• Japanese Yen (JPY)
• South African Rand (ZAR)
• Currencies of other EIB partner countries.

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.

What are the principal lending facilities of the EIB?

In general terms, the EIB has two main financing facilities (please note that the EIB does not provide grants nor does it enter into cooperation agreements):

• Individual Loans for capital spending programs or projects costing more than EUR 25 million.
• Intermediated Loans (Global Loans) consisting of loan facilities to banks and financial institutions to help them to provide finance to customers with eligible spending programs or projects costing less than EUR 25 million. Lending decision under this scheme remains with the clearing bank or finance house with access to EIB funds. Promoters interested in global loan financing should contact the banks and intermediaries involved directly.

What is the procedure for obtaining an EIB loan?

No special formalities are attached to the submission of applications to the EIB for individual loans. Project promoters are required simply to provide the Bank's Operations Directorate with a detailed description of their capital investment together with the prospective financing arrangements.

Initial contacts to discuss a proposed project can be in any form, by telephone, fax, e-mail or letter. For such first contacts, the project promoter should provide sufficient information to allow verification of compliance of the investment with the eligibility criteria of the EIB and have a well-developed business plan.

How does the EIB go about appraising a project?

The Bank will review the promoter's own comprehensive feasibility studies, and make a preliminary assessment of certain aspects of the project including:

• Technical
• Environmental
• Economic
• Financial
• Legal

This is then followed up with a detailed appraisal by an EIB project team, consisting of an economist, an engineer and a loan or contact officer within the Bank.

The project team will make use of all existing available reports, analyses and documents, and include a visit to the project's operating company and the investment's location.

The EIB forms its own opinion on the basis of available data and documents.

If a project is deemed suitable for an EIB loan, what happens next?

Assuming a satisfactory outcome the EIB review, a loan proposal will be put forward for approval by the Bank's Management Committee to the Board of Directors, which meets ten times a year.

Once approved by the Board, the loan facility can be drawn down in one or a number of installments according to the borrower's requirements, usually starting within 12 months of the approval date (Project cycle).

Who should be the first point of contact when applying for a loan from the EIB?

For further information on loan application, potential borrowers are invited to contact the EIB's Infodesk for general information on the loan application procedure.

Alternatively, a list of senior officials in the EIB Lending Operations Directorate can be found on the website.

Promoters are asked to consult the directorate for Lending Operations in Europe or the directorate for Lending Operations outside Europe and contact the appropriate teams via the EIB switchboard +352 4379-1.

What types of project does the EIB finance?

The EIB finances a broad range of projects in energy, infrastructure and industrial sectors. To be eligible, such projects have to contribute to EU economic policy objectives.

Typically, the EIB supports:

• Investment by thousands of small and medium sized enterprises each year which is important for job creation
• Construction and upgrading of transport infrastructure (rail, air, road connections and bridges)
• Energy production, transfer and distribution (power gas heat etc) as well as schemes for more efficient energy use and alternative energy supplies (wind power, etc)
• Telecommunications infrastructure
• Natural and urban environment schemes (water, waste, cleaner air, urban transport etc.)
• Investment in human capital (schools, Universities, laboratories, research centres, hospitals etc)
• Industrial projects in manufacturing (motor vehicles, pharmaceuticals, aviation equipment, chemical etc)

Does the EIB provide venture capital?

Requests for venture capital should be made to the European Investment Fund, which is one of the leading sources of venture capital within the Union. Please note that the EIB does not provide financing for the establishment of new businesses.

Does the EIB provide grants?

The EIB does not normally provide grants or subsidies. Individuals and organisations interested in gaining access to European funds in the form of grants should contact the European Commission directly.

More information can be found online as part of the Bank's Sponsorship and Subsidy Policy.

Can EIB loans be combined with loans from other banks?

In accordance with Articles 16 and 18 of the EIB statute, the EIB works with other banks, either co-financing projects or in security structures.

To allow promoters to make use other sources of finance wherever possible, the EIB's intervention in any project is limited to 50% of the cost of the qualified investment cost of a project as it is established during appraisal.

Can EIB loans be combined with EU grants?

The EIB will finance up to 50% of the total project cost but financing may be combined with EU grants depending on the scope and definition of the individual project.

For all information on EU grants please consult the web pages of the European Commission.

What are the conditions of EIB lending?

The EIB provides long-term loans, running from approximately 4 to 20 years (possibly more), depending on the economic life of the assets to be financed.

As well as fixed interest rates, the Bank can offer revisable fixed and convertible rates, allowing for the change of interest rate formula during the life of the loan at predetermined dates or periods. EIB variable rate loans are usually available at a spread below LIBOR, fixed for the full maturity of the loan at the time of each draw down.

In addition to its usually advantageous lending rates, the EIB normally charges neither commitment fees nor non-utilisation fees, but fees for a project's appraisal and required legal services may be applicable in certain cases.

The EIB seeks adequate security for its lending, such as that provided by a bank or banking syndicate, a financial institution, or a large diversified parent company with a good credit rating. In certain circumstances, the Bank may also include a risk margin in the financing arrangements.

The EIB seeks assurances that no other creditor is in a more favourable position than itself, taking into account the tenor and expected amount of the commitment.

The EIB monitors the project's progress, and may carry out onsite inspection. It may also prepare an end of project evaluation report.

How long does the loan procedure take approximately from application to disbursement?

An EIB appraisal procedure can take any period of time between 6 weeks to 18 months depending on the project scope, the degree of complication of an operation, and the efficiency of the appraisal process on the part of both the EIB and the project promoter.

What are the EIB disbursement procedures?

An EIB loan facility, once approved by the Board of Directors, can be drawn down in a number of installments, according to the borrower's requirements. Typically, an EIB facility is available for use over a two to three year period. Disbursements would be usually at short notice, 10 to 15 days following each disbursement request.

The maturity, repayment terms and amortisation profile of each draw down installment can be chosen by the borrower at the time of disbursement, facilitating active treasury management. Decisions on timing and choice of currencies, maturities and interest rate formulae are kept open and decided upon at the time of each disbursement request. As such, an EIB facility resembles an MTN programme without set-up costs.

How does the EIB manage the tendering procedure for its loan projects?

The Bank's policy is to ensure that its funds are used rationally, in the interests of the project it finances and in the interests of the EU. The Bank verifies that a fair process of international tendering takes place according to procedures set out in the EIB Guide to Procurement which can be accessed online.

Calls for tender for EIB projects are published in the Official Journal of the European Union. This is mandatory for all non-EU projects. For further information please contact the project promoter directly.

How does the EIB manage procurement of services, supplies and works for its own account?

As the European Union's financing institution, the Bank, in its dealings with external providers, is committed to respecting the fundamental EU principles regarding public procurement, such as the principles of equal treatment, non-discrimination and transparency. The Bank considers that, as a general rule, these principles can be best implemented by competition among qualified tenderers and by a selection based both on cost and quality considerations.

All information is published in the Official Journal of the European Union and announced on the EIB website in the form of a new item. For more information please see the Guide for procurement of services, supplies and works by the EIB for its own account.

What is the policy of the EIB concerning international competition?

For most EU and non-EU projects financed by the Bank’s own resources (funds raised mainly through the Bank’s borrowings on capital markets), firms originating from all countries of the world are eligible to tender for works, goods and services contracts. 

What are the Corporate Governance rules at the EIB?

The EIB and its staff are covered by a Code of Conduct, setting out the rules and standards for professional behaviour.

Members of Bank staff are expected to:

• Commit themselves to the Bank's objectives
• Act loyally, honestly and impartially
• Subscribe to a high standard of personal and professional ethics.

Within the Bank, a dedicated Compliance Office has been set up to identify, assess, advise on, monitor and report on the compliance risk of the EIB Group.

The team monitors compliance by EIB Group staff of the rules on ethics and integrity and recommends the adoption of protective or redressing measures where appropriate.

What are the EIB rules about confidentiality of information?

The EIB considers itself accountable to all stakeholders. It maintains and develops an active transparency policy regarding its activities and policies in line with relevant EU regulations and policies.

The EIB actively communicates with the European Parliament, the Economic and Social Committee and with Civil Society. It publishes its Operational Strategy on its website, as well as a wide range of information on its policies and procedures, including listing basic information about its project list and loans activity.

Nonetheless, the EIB operates as a bank and is subject to conventional bank-client relationships. This includes the need to protect the business and commercial interest of its clients, which may require keeping project information confidential.

Does the EIB have an anti fraud policy?

The Bank has adopted an active policy against fraud and money laundering in the context of its financing operations. See the EIB Guidelines on Fighting Corruption and Fraud. Under the tendering rules the Bank applies, it requires declarations of integrity and identification of source of funds from promoters and tenderers (Guide to Procurement, sections 1.5, 3.5 and Annex 3).

What is the EIB policy for providing information for business directories?

The EIB does not seek to participate in business directories. As such, it is the policy of the Bank not to update details on an individual basis for such publications.

All information regarding the activity, aims and structure of the Bank is updated regularly on this website. Organisations wishing to include details of the EIB in their publications are asked to gather information directly and free-of-charge from the Bank's website.

Organisations who wish to include a textual summary of the EIB in their publications are asked to submit a proposed text to the Bank for validation (via the Infodesk) at least 10 working days prior to the deadline. Should the text be in an EU official language other than English, German or French, please allow at least 20 working days.