The pilot phase of the EU-EIB Project Bond Initiative was established by Regulation No. 670/2012, published in the Official Journal L 204/1 of 31/07/2012. The Initiative aims to revive and expand capital markets to finance large European infrastructure projects in the fields of transport, energy and information technology.
The scope of this pilot phase is to test the project bond concept at the end of the multi-annual financial framework 2007-2013. The pilot phase of the Initiative started its operations in 2012 and is being implemented by the European Investment Bank (EIB). The cooperation agreement between the Commission and the EIB was signed on 7 November 2012. The objectives of the pilot phase of the Initiative are two-fold:
The aim is to attract institutional investors to the capital market financing of projects with stable and predictable cash flow generation potential by enhancing the credit quality of project bonds issued by private companies. The intention is to support capital market financing of projects as a form of finance to complement loans, not to replace other sources of financing, such as grants, nor to intervene in stages prior to financing, such as feasibility studies, assessments or procurement, where grants are also widely used.
Commercially viable infrastructure projects in the EU, which are eligible for funding under the TEN-T or TEN-E policies or under the CIP-Decision on broadband, can benefit from the initiative.
The aim of the Europe 2020 Project Bond Initiative is to enhance the credit standing of private entities that need to raise private funds for the infrastructure projects they promote. This is fundamentally different from the idea of the so-called "Eurobonds" or "Stability Bonds", i.e. the joint issuance of bonds to provide general funding for Member States' government funding needs. In contrast, neither the Commission nor the Member States will issue bonds under the Europe 2020 Project Bond Initiative.
Projects currently supported
Pipeline: Approved projects with PBCE option
For reasons of confidentiality specific details of projects in the pipeline may not be disclosed. Full details will be published when contracts have been finalised and signed by all parties.
The following table lists projects currently in the approval pipeline.
Pipeline: Approved projects with PBCE option (in EUR million)
|TEN-E||Grid connection to several offshore wind farms||UK||150|
|TEN-E||Grid connections to several offshore wind farms||Germany||170*
Next financial close anticipated in Q3 2014
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