European Investment Bank (”EIB”) Thematic Impact Finance Program for heavy CAPEX investments

EIB's Thematic Impact Finance program focuses on three sectors: Energy, Transport and Circular Economy. The instrument enables debt financing even if the project has a high commercial risk. It is suitable for projects and companies in which the banks do not participate due to the project being still in its early phases, and where the risk level is high. The instrument also reduces the need of equity financing.  

Objective of the program is to:

1. Finance flagship projects and companies that are potential game-changers in their sector

2. Target innovative solutions compared to the current state-of-the-art

3. Support and accelerate the commercialisation and further rollout to the market
   
   
   

Circular Economy
The EU needs investments in innovative Circular Economy projects to meet its waste reduction targets. Eligible project/company should reduce impact on the climate and the environment, reduce dependency on imported raw material and support sustainable economic growth and competitiveness.

Projects should be first demonstrations or first-of-a-kind commercial projects in the field.


Energy Demo
The EU needs investments in innovative energy technologies to meet its decarbonization targets. EIB supports projects and companies that operate with e.g., the following:

• Innovative renewable energy

• Carbon capture & storage

• Storage & smart energy systems

Projects should be first demonstrations or first-of-a-kind commercial projects in the field.


Transport (Future Mobility)
Supports investments in high-risk projects of common interest in the transport sector. Projects must contribute to (at least) one of the following objectives:

• Cleaner mobility

• Smarter & more efficient mobility

• Safer mobility

Projects can be local roll-out of transport/mobility solutions that have already been demonstrated elsewhere (i.e. 2nd/3rdof-a-kind projects in the field).


Key terms & usage

• Corporate loan or project finance with EIB minimum ticket size of 7.5 M€

  • Loan/quasi-equity typically with 5-year bullet term

  • Senior collateralised project loan tied to project cashflows
    
    

• EIB financing can go up to 50 % of the total project costs incurred over a 3–4-year horizon. Tickets 50-100M€ are feasible (no ticket cap on the programmes).
  
  

• The proposed project(s) can consist of:

  • A single project

  • A series of projects (e.g., 2-3 manufacturing plants)
    
    

• Eligible project costs are typically limited to CAPEX costs

  • Other costs (OPEX, sales, marketing) can occasionally be included when they are required for successful demonstration

  • The EIB expects sufficient equity to be in place (as a minimum of 25 % should be considered)

To learn more about the above program or other EIB instruments (e.g., growth lending) please contact Grannenfelt Finance representatives. All of our contact information can be found here.