Added Value
As an AAA-rated financial institution and the lending arm of the EU, EIB involvement can bring significant added value to TEN projects.
- It has the ability to mobilise, on the finest terms, the large financial resources necessary for such infrastructure
- It offers maturities of up to 30 years and longer in certain cases and grace periods tailored to the scale of the projects
- Where appropriate, it can provide structured finance in cooperation with commercial banks and capital market founders
As a result of previous experience, the EIB is in a position to offer technical and environmental advice necessary for TEN projects. In addition, the EIB offers a number of special products:
- Public Private Partnerships (PPP) play an important role in investment in transport TENs. The Bank has built up wide experience and expertise in the field of PPP financing and has been entrusted by the European Commission and EU Member States with establishing the European PPP Expertise Centre, which aims to facilitate the effective sharing of experience and best practice in PPPs and to provide support for project preparation and advisory services to the public sector promoters.
- The Structured Finance Facility aims to match the types of funding to the requirements of large-scale infrastructure projects.
- The Loan Guarantee Instrument for Trans-European Transport Network Projects (LGTT) provides cover for lower than expected revenues that might occur because of lower than anticipated traffic volumes in the critical early phases of project operation. It is a tool specifically designed to allow greater private sector participation in TEN projects that are exposed to traffic risk.
- The Marguerite Infrastructure Fund (together with other leading European financial institutions) is a fund specifically designed to provide direct equity for TEN projects.
