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Investment Facility

Investment Facility

Investment Facility

Flexible financing

The EIB is entrusted with the management of the Investment Facility, a revolving fund where revenue is reinvested in new operations, which makes it a financially sustainable facility. The Investment Facility meets the financing needs of investment projects in the region with a broad range of flexible risk-bearing instruments. It is funded from the resources of the EU Member States.

The Investment Facility mainly supports projects promoting the development of the private sector and commercially-run public enterprise. Investments in the infrastructure sector and the financial sector promoting private sector development are priorities, while eligible public sector projects are also considered under the ACP Migration Package.

The Investment Facility adds further value to operations financed by the EIB through the provision of grants for financing interest rate subsidies as well as project-related technical assistance. Examples of projects that made or are making use of IF funding are the Lake Turkana wind farm (a public private partnership also featuring a blending component from the European Union), the majority of global loans and credit lines to ACP financial institutions. It has also been used to support the construction of transport and healthcare infrastructure.

Impact Financing Envelope – higher risk, big impact

The EIB also invests in higher risk projects through a separate window of the Investment Facility, the Impact Financing Envelope. This allows the EIB to go further than the traditional operations, and explore new sectors and new regions, supporting private sector initiatives with a big impact for poorer populations.

Launched as a EUR 500m envelope, the Impact Financing Envelope has been expanded to EUR 800m by turning it into a revolving fund too. This will target projects which tackle the root causes of migration, as part of the ACP Migration Package. Good examples of Impact Financing Envelope projects are our investments in the Compagnie Agricole de Saint Louis and Boost Africa.

Investment Facility governance

The Investment Facility Committee was set up in 2002. This convenes regularly to discuss and deliver an opinion on financing proposals (from Investment Facility resources and the Bank’s own resources) under the Cotonou Agreement and the Overseas Association Decision, prior to their submission for the EIB Board of Directors’ approval.

The Investment Facility Committee is also consulted on policy and strategic issues concerning the Bank’s activity in ACP and OCT regions. These prerogatives confer an advisory role on the Investment Facility Committee towards the Board of Directors.

The committee consists of representatives of the EU Member States and of the European Commission. A representative of the General Secretariat of the Council and a representative of the European External Action Service are also invited to attend meetings as observers. Two EIB officials are also appointed to take part in the works of the Committee. For more information on the how the Committee works in practice, please see the rules of procedure.

The meetings are chaired by a Member State representative elected for a period of two years. The current Chairman (as from 1 January 2017) is Germany’s representative Benjamin Tedla Hecker, and the rest of the members can be found here.

Instruments

Investment Facility
EU Member States Budgets
EIB Own Resources
Funds raised on
the capital markets
Senior loans check check
Intermediated loans check

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Interest rate subsidies check check
Technical assistance check check
Widely traded currencies check check
Junior or subordinated loans check check
Quasi-equity funding check check
Equity funding check check
Guarantees check check
Local currencies check check



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