Direct RSFF Financing: Project Financing (Senior Loans)
EIB RSFF Project Financing is granted to RDI projects which are implemented by a legally independent project company created solely for the purpose of the project. Project financing is typically in the form of a long-term senior loan.
Financing is provided to:
- Self-sustaining legal entities
The assessment of the debt servicing capacity of the project company is based primarily on the cash flow generated by the project. Security for the project financing is provided through the assignment of rights granted under contracts concluded by the project company with third parties.
- Transnational and/or collaborative research projects with a large number of different stakeholders (e.g. European Research Infrastructures)
These are typically financed under Public Private Partnership Programmes ('PPP') or Private Finance Initiatives ('PFI'). Under such structures, private investors or operators cooperate closely with public sector institutions such as the European Commission.
The EIB cooperates closely with other financing partners (e.g. arranging bank, sponsors) to develop the appropriate financing structure for the project company,).
General terms and conditions of EIB loans/guarantees:
- Maximum loan amount: up to 50% of eligible project cost
- Minimum loan amount: EUR 7.5m (smaller loans will preferably be handled through the Risk Sharing Instrument)
- Due diligence focuses on financial, technical, market & legal risks. EIB usually relies on own resources for due diligence projects
- The loan approval process usually takes 3-6 months
- Loan pricing: commensurate to the level of risk assumed by the Bank, depending on the solidity of the financial projections of the project company and contractual terms and conditions agreed
- Fees: in accordance with the complexity of the transaction
Example of a project eligible for RSFF Project Financing:
Two energy companies develop an innovative renewable energy generation plant. In order to share the risk, the sponsors create a designated project company.
Other RSFF Financing Products: