SUSTAINABLE INVESTMENTS (INVESTEU VD) LE

The purpose of the Lending Envelope (LE) is to provide venture debt financing (equity-type) to eligible sub-projects under the InvestEU Sustainable Infrastructure Window. The main policy priority area addressed by this LE is '1. Sustainable Investments', as defined in Article 5 of Schedule A.1.1. of the InvestEU Guarantee agreement.

The aim is to bolster finance, promote sustainability and foster technological progress through sustainable investments in a broad range of domains, including, among others, clean energy, sustainable transport, infrastructure, bioeconomy and manufacturing.

The Lending Envelope concerns sustainable investments with a specific focus on delivering on the areas eligible set out in the InvestEU Regulation. More specifically, the financing and investment operations may fall under one or more of the following areas: (1) the development of the energy sector; (2) the development of sustainable and safe transport infrastructures and mobility solutions; (3) environment and resources; (9) tourism; (11) sustainable bioeconomy; or (15) blue economy.

The operation will provide a valuable support to the green transition and the EU market for sustainable technologies, products and services, fostering sustainable economic growth, employment, and contributing to enhance the EU competitiveness in this segment. 

Depending on the details of the specific sub-project, the investments will contribute to at least one of the following Bank's policy objectives: "Innovation, Digital and Human Capital", "Sustainable Energy and Natural Resources", "SME and mid-caps Finance" or "Sustainable cities and regions". In addition, investments in the lending envelope are expected to contribute to the EIB Climate Action and Environmental Sustainability policy objective (80% of total project cost of all the sub-operations) as well as to the Bank's "Economic and Social Cohesion" objective for an anticipated 20%.

This Lending Envelope will address a range of market failures linked to investments in sustainable technologies and infrastructure, including:

·        Positive environment or social externalities which are not accounted for in the financial return of the sub-projects.

·        Limited financing available for SMEs and Mid-caps in the green transition and low carbon economy.

·        Information asymmetries regarding the quality of projects and/or technology.

·        Lack of appropriate financial tools when financing small scale-up projects.

The mitigation of those market inefficiencies duly justifies the EIB's financial intervention.

The financing structure under this Framework Operation is designed to address high-risk investments that are requiring long-term capital, with EIB being additional in maturity and volume. A similar long term financing structure is not commonly available from other market players at comparable terms and/or within the same crucial timeframe. For instance, EIB is able to provide disbursements in several tranches, a long availability period, a long maturity, a grace period on interest and a sculpted amortisation profile. For most of the sub-operations to be presented under this Framework Operation, the structuring of the EIB financing is expected to have a catalytic effect on other investors' assessment in the project.

This operation would not have been carried out to the same extent by the EIB without InvestEU support.

Projects financed under this lending envelope need to comply with applicable national and EU legislation, as appropriate, and standard information will be posted on the EIB website.

Projects financed under this lending envelope will comply with applicable national and EU legislation, as appropriate.