One of the CEF’s key elements is more systematic use of innovative financial instruments (e.g. Project Bonds ) to provide a funding alternative to traditional grants and fill financing gaps for strategic investments.
The CEF builds on the experience of existing financial instruments put in place in cooperation with the European Investment Bank (EIB), such as the Loan Guarantee Instrument for trans-European transport networks projects (LGTT), the pilot phase of Project Bonds and the Marguerite Fund .
The CEF will act as a catalyst for further private and public funding by giving infrastructure projects credibility and lowering their risk profiles, thereby attracting investors. It will also finance technical assistance programmes.
The main terms, procedures and conditions for the use of financial instruments are detailed in the Part III of the Annex I to the CEF Regulation .