On the 11th of April 2011 a conference on the Europe 2020 Project Bond Initiative took place in Brussels. This Conference served as an integral part of the stakeholder consultation for the Europe 2020 Project Bond Initiative launched by the European Commission and the European Investment Bank. The consultation process will end on the 2nd of May 2011.
The European Commission and the EIB then presented and explained of the Initiative in detail, followed by three consecutive roundtables:
- Session 1: Synthesis: Advantages and disadvantages compared to the current financing models.
- Session 2: Demand View: Investor requirements in terms of deal structure
- Session 3: Supply View: Expected impact of the project bond initiative on capital market funding of projects
The EU Project Bond initiative does not aim at substituting bank financing, it aims at ensuring compatibility. The key idea of the Europe 2020 Project Bonds is to use EU budget funds and the EIB’s balance sheet and expertise more effectively and efficiently, so that certain type of projects can attract capital market financing, for instance, from insurance companies and pension funds. Suitable projects should be in line with our Europe 2020 objectives, for example, long-term infrastructure projects that are of major public interest and have revenue potential.
The traditional way of debt-finance would be bank loans, but issuing bonds would expand the investor base. However, funding gaps can arise due to the risks involved and the long-term nature of the project. EU budget funds and the EIB’s balance sheet would then be used to bridge this funding gap and to reduce the credit risk of project bonds issued by these private project companies. Up to a pre-determined level, EU funds could be used to absorb part of the risk of the bonds. The EIB will then absorb further risk.
For the entire presentations – click here.
Participants:
- Olli Rehn – European Commissioner for Economic and Monetary Affairs
- Philippe Maystadt – president of the EIB
- Gerassimos Thomas – Director, DG ECFIN, Finance, Coordination with EIB group, EBRD and IFIs
- Pierluigi Gilibert – DG of Directorate for operations in the EU and candidate countries, EIB
- Sharon Bowles – MEP, chair of the Economic and Monetary Affairs Committee
- Philip Lowe – DG for DG ENER, European Commission
- Thomas Barrett – Director, Action for Growth Instruments Department, EIB
- Dennis Ishay – VP, Project & Capital Advisory, Deutsche Bank
- Ali Kazmi – VP, Structured Finance, Deutsche Bank
- Yann Le Saux – Director, Head of Project Finance – Americas/British Islands & Africa, Bouygues Construction
- Klaus Kathmann – Head Structured Finance, Strabag Infrastructure Development
- Julia Prescot – Partner and Chief Strategy Officer of Meridiam Infrastructure Managers
- Anna Krzyzanowska – HoU, DG INFSO, Evaluation and Monitoring
- Thomas Bayerl – Senior Portfolio Manager at German Asset manager, MEAG
- Clare Burgess – Senior Associate, Capital Markets, Clifford Chance
- Deborah Zurkow – Managing Director of MBIA’s International Division and Head of Global Public Finance for EMEA
- Marc Bajer – Chairman and Founder, Hadrian’s Wall Capital
- Jean – Eric Paquet – Acting Director, DG MOVE, Trans European Transport Networks & Smart Transport
- Carlo Secchi – European Coordinator, for the TEN-T Priotiry Projects 3 and 19
- Stephane Derouvroy – Managing Director, co Debt Capital Markets, HSBC France
- Johan Verhaeghe – VP Senior Credit Officer, Moody’s Investors Service
- Georg Grodzki – Head of Credit Research, Legal & General Investment Management
- Nicholas Jennett – Head of European PPP Expertise Centre (EPEC)
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