Financing opportunities for digital transport applications DIGITAL TRANSPORT DAYS
Financing opportunities for digital transport applications
DIGITAL TRANSPORT DAYS
What do we do in Transport sector?
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Recent EIB lending (signed operations) some EUR 57bn per year. On average, transport projects have constituted some 15%-20% of total lending.
Note: The data is the property of the EIB. For reproduction, prior permission from the EIB is required.
2018 EIB financing
EUR56.6bn
Transport
EUR10.2bn
Operations signed in 2018
8.60%
5.70%
25.86%
30.48%
29.36%
Air
Maritime
Rail
Roads, motorways
Urban
Examples of EIB financed Digital Transport projects
Source: http://www.kapsch.net/
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Electronic Tolling System Poland (EUR 120m)
1800 charging stations across EU (EUR 40m)
Mobility Card Barcelona -Contactless ticketing & fare for all modes public transport (EUR 35m)
Puerto de Barcelona III - First semi-automated container terminal in Europe (EUR 400m)
GSM-Railway France (EUR 745m)Paris fully automated Subway -33km first phase of Line 15m
ENAV 4-Flight & Air Traffic Management (EUR 250m)
Amsterdam Airport Baggage System (EUR 350m)
Transport Digital projects are often complex to set up, tender and roll out. They are however efficient investment with relatively low CAPEX and high economical benefits.
EIB is increasing Financing in Digital Transport solutions and services
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Technology is profoundly transforming mobility.
Clean, Digital and Automated technology is rapidly being deployed across all modes of transport and lies at the heart of European Union policies.
The deployment of this innovative technology will be central to the Bank’s approach to transport in the years ahead.
EIB support Innovative Digital Transport projects- New mobility services SMEs/Midcaps- Public Transport smart payment & ticketing- Rail Digital services projects, including ERTMS- Digital Platform for Logistics & Multimodal mobility- Inland Waterways Information Systems (RIS) - Road e-infrastructure projects including ITS and C-ITS- Single EU Single Sky ATM (SESAR)
Projects must be technically sound and financially viable
EIB started an ITS deployment maturity and financing gap assessment
EIB financing products overviewProduct Concept Eligibility Counterpart
Lending
Direct Loan individual loan to one borrower min. approx. EUR 25m
public and private entities
Programme Loan individual loans to several borrowers individual loans should be < EUR 100m
Framework loanindividual loans awarded to multiple beneficiaries through one borrower
individual loans should be < EUR 50m (but can be less)
BlendingConnecting Europe
Facility (CEF)Grants for innovation and new
technologies for transportaward is contingent on co-financing with EIB, national promotional bank or private finance
EU Member States/ promoters with support
from Member State
Advisory
European Investment Advisory Hub
Technical and financial advisory to identify, prepare and structure
investment projects in EU
Prioritise TEN-T, urban mobility, digital, climate action investments, as part of EFSI 2
investment priorities in general
public and private entities
JASPERSAdvisory support for projects / beneficiaries seeking EU grants
Infrastructure projects and their promoters seeking EU grant support
Mainly public entities
Innovation Finance Advisory
Financial advisory support to structure and accelerate financing to
innovation-related projects.
InnovFin and EFSI2 eligibilities. In transport, priority on sustainable mobility, digital solutions, climate action investments
EU and H2020 associated countries private and
public entities
ELENAgrants for technical assistance for
project developmentup to 90% of total technical assistance costs
public and private entities
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What are the benefits?• Target high risk projects, but have a
viable business model
• Long tenors and competitive pricing
• EIB also offers blending of financing and
advisory
• Quality stamp and positive signaling
effect
What is the Future Mobility?• Targets projects in the transport sector
through deployment of innovative
technologies
• A thematic financing under the CEF DebtInstrument:
→ Will mobilise private sectorinvestments in clean, digital andautomated transport technologydeployment
Eligibility
Clean mobility
Digital mobility solutions
Automated mobility
Telecom & energy
EU & TEN-T
Greenfield & Brownfield
Instrument Loans / quasi-equity /
guarantees
Financing size EUR 7.5m – EUR 25m
Tenor Up to 15 years
Covenants &
security
Transaction-specific
Jurisdiction Transaction-specific
Financing Transport Digitalisation - Digital Days 2019 @ Helsinki
Direct lending
CEF Transport Blending Facility
The CEF Transport Blending Facility is an innovative approach to promote the substantial participation of private sector investors and financial institutions in projects contributing to the environmental sustainability and efficiency of the transport sector in Europe.
Minimum CEF grant EUR 1 m
Minimum size of the loan: EUR 5m (for EIB recommended min EUR 25m)
Project implementation must be completed by 2023
The CEF Transport Blending Facility will support two areas in clean and digital transport : Deployment of the European Railway Traffic
Management System (ERTMS) Deployment of Alternative Fuels
Example of ERTMS eligibility (source: INEA)
Financing Transport Digitalisation - Digital Days 2019 @ Helsinki
EIB Technical Assistance and Advisory Services
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• Sector Studies:• Financing innovation in clean and sustainable mobility
(IFA)• Impacts of innovative transport solutions on roads
development and operation (JASPERS)• Capacity Building:
• ITS Workshops in Eastern Europe (EIAH)• ITS Guidance Note For Cities (JASPERS)• Mobility Data Guidance Note For Cities (EIB)
• Project Preparation Support:• Digital Dry Port (Italy) (EIAH)• Weigh-in-Motion (WIM) System (Ukraine) (EIB)• Sustainable and smart urban mobility (ELENA)
ITS financing maturity (source: EIB)
ELENA
European Local ENergy Assistance
Funding & Financing phases
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Funding size
(EUR m)
< 1.0m
< 7.5m
< 10m
< 25m
Project / Company development stage
Global Loans
Seed stage
First “Valley of Death”
Second “Valley of Death”
Intermediaries (Funds)
Intermediaries (Banks)
Investment Loans
Contingent Loans
Qu
asi-
equ
ity
C
o-i
nve
stm
ents
/Dir
ect
Equ
ity
Venture Capital (VCs)
VC / SME Funds
Private Equity (PE)/ MidCap Funds
Growth
H2020 & CEF
DEBTBLENDINGGRANTSFUTURE MOBILITY
EFSI
Thank you!
More information at: www.eib.org
Tel.: +352 4379-22000