This presentation by The European Investment Bank's James Ranaivoson was given at a session titled "Unlocking Capital for Land Use and Conservation Projects: the Business Case for Investing" at the Global Landscapes Forum: The Investment Case on June 10, 2015. For more, please visit http://www.landscapes.org/london/

1. 08/05/2015 European Investment Bank Group 1

2. Global Landscapes Forum
Expert Cluster 1
Unlocking Capital for Land Use and Conservation Projects:
the Business Case for Investing
London, 10 June 2015
James RANAIVOSON
10/06/2015 European Investment Bank Group 2

3. 10/06/2015 European Investment Bank Group 3
EIB at a glance
 2014 Highlights :
 EIB loan/investment signatures : EUR 77.0bn; EIF signatures : EUR 3.3bn
 (i) Innovation & Skills: EUR 14.7bn; (ii) Smaller Enterprises: EUR 25.5bn; (iii) Strategic
Infrastructure: EUR 20.6bn; (iv) Climate Action: EUR 19.1bn; (v) Outside EU: EUR
7.9bn
 Borrowing volume in international capital markets : EUR 61.6bn including Green Bonds
issuance (Climate Awareness Bond program) : EUR 4.3bn
 Main Features of EIB Climate Action :
 Since 2009, measuring significant carbon footprint of (all sectors) projects financed
 2010-2014 : (i) 12,000 GWh per year of electricity from renewable energy sources; (ii)
EUR 36.0bn in renewable energy and energy efficiency projects; (iii) EUR 16.9bn for
water projects; (iv) EUR 35.0bn for lower carbon transport; (v) EUR 4.2bn for forestry
projects; (vi) 3 million tCO2 saved per year from projects financed.
 2014 signatures: especially (i) 12 wind farm and 9 solar operations; (ii) 6 tramway, 2
urban rail, 7 metro, 19 other rail projects.
 Mainstreamed Environmental & Social Standards:
 The EIB E&S Principles are operationalised by 10 Standards and complement the
financial and economic criteria in the appraisal of all projects.
 They are aligned with other IFI Standards.
 They apply to both public and private sector and to all regions (EU-28 and outside).

4. 10/06/2015 European Investment Bank Group 4
EIB Climate Action Signed Operations
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
2008 2009 2010 2011 2012 2013 2014
EURm
Renewable Energy Energy efficiency RD & I Transport Other & miscellaneous** Adaptation
2008 2009 2010 2011 2012 2013 2014
Total* 9,771 16,691 20,513 18,496 13,284 18,982 19,125
*2008-2011 EIB + other funds - from 2012 only EIB resources
**including Afforestation, Forest Management, Waste and Wastewater
The European Investment Bank (EIB) is the European Union’s bank. Owned by the 28 EU Member States, the EIB
provides finance and expertise for sound and sustainable investment projects in over 160 countries. As the world’s largest
multilateral borrower and lender by volume, climate action is a key priority for the EIB with a minimum 25% of total lending
dedicated for per year .

5. EIB Financing Instruments
 The EIB has, to its disposal, an extensive range of instruments to finance
public and private sectors at investment and sub-investment grades of risk
EIB lending instrument
for Investment Grade
operations
Special Activities
For low and sub
investment Grade
operations
Project Finance
Direct Loans
Project
Project finance with
direct project risk
First-Loss allowing EIB
undertaking higher risk
Equity through
Funds
Intermediated Loans
Banks
Public Sector
Financing
10/06/2015 European Investment Bank Group 5European Investment Bank Group 5

6. 10/06/2015 European Investment Bank Group 6
Innovative Climate Finance Products (1)
 Making “bankable” projects that have revenue-generation capacity:
 Sub-investment grade? Too small? Pilot / “learning by doing”? Problems other than
financial (e.g. environmental, social etc)?
 EIB value-added: expertise (+ “seal of approval”), flexibility, catalytic effect, leverage,
creativity
 Innovative products allowing grants or blending with different funding
sources to be combined with EIB loans/investments
 Infrastructure (pari passu) Equity funds as of end 2014:
 EUR 600m committed by EIB in 22 climate-related infrastructure equity funds
 Renewable energy, energy efficiency, forestry, urban land decontamination, biodiversity
 (Co-investment) catalytic effect = 6x ; (Project costs) multiplier effect = 20x
 Dasos Timberland funds, Eco-Enterprises II, Althelia (African Sustainable Fund, Arbaro)
 Althelia: activation of revenues with REDD+ carbon credits + partial guarantee on
revenues
 Funds of funds:
 Global Energy Efficiency and Renewable Energy Fund (GEEREF): EUR 112m seed
funding from EU, Germany and Norway in 2008 leveraging some EUR 110m from private
investors up to date for a total of 20+ funds investing in small projects in Africa,
Caribbean and Pacific, LatAm and non-EU Eastern Europe.

7. 10/06/2015 European Investment Bank Group 7
Innovative Climate Finance Products (2)
 Layered-risk funds (cf. FiM presentation):
 Green for Growth Fund (GGF)
 European Energy Efficiency Fund (EEEF)
 Global Climate Partnership Fund (GCPF)
 EU-EIB Joint Facility Initiatives:
 Private Finance for Energy Efficiency investments (PF4EE) : long-term low-cost loans to
energy efficiency projects by commercial banks that benefit directly from credit risk protection by
EU LIFE CLIMA budget (EUR 80m for target project costs of EUR 500m); PF4EE is one out of
four segments of a wider EIB initiative on energy efficiency called “DEEP Green” (other segments:
public sector, ECSOs and utilities)
 Natural Capital Financing Facility (NCFF) : develop a pipeline of projects in EU-28, testing
different financing options (direct loans, intermediated loans, investments through private equity
funds) in order to identify the most suitable approach for green infrastructure projects, operations
using payment for ecosystem services features, climate adaptation projects, biodiversity
offsets/compensation projects beyond legal requirements as well as financing pro-biodiversity
businesses (sustainable forestry, agriculture, aquaculture, eco-tourism etc); up to EUR 125m
funded by EIB with first-loss protection of EUR 50m from EU LIFE ENV and CLIMA budgets

8. 10/06/2015 European Investment Bank Group 8
Innovative Climate Finance Products (3)
 EIB investing in bonds or guaranteeing bond/securitisation structures:
 Project Bond Initiative providing partial credit enhancement to large EU-28 infrastructure projects
– transport, energy so far - in order to attract capital market investors, with EIB investing in
subordinated tranches or enhance the credit quality of senior or subordinated tranches
 Viveracqua Hydrobond : pooling of mini-bonds issued by small utilities for water infrastructure
projects, used as collateral for a EUR 300m Asset-Backed Securities program, with EIB investing
EUR 145m subordinated to senior tranches.
 Renewable Energy Platform for Institutional Investors (REPIN) : still in test phase with the
market, to bridging between “short-term” lenders and long-term institutional investors for loans to
renewable energy projects, with various solutions (pass-through of loan portfolio, issuance of
notes backed by loan portfolio, securitisation of loan portfolio) with EIB providing due diligence
services, then either intermediating or underwriting or credit enhancing etc loan portfolios
 Green Bonds issued by EIB:
 Climate Awareness Bonds (CABs) : strict earmarking / dedicated liquidity portfolio to
be allocated to renewable energy, energy efficiency and energy network sectors so
far; eq. of EUR 8bn raised since EIB pioneering issuance in 2007 up to 12- year
maturity; EUR 4.8bn raised in 2014
 Extension to Land-Use projects : cf. presentation by Climate Bonds Initiative
with Clarmondial

9. .Sustainable agriculture, livestock,
aquaculture
Various Ecosystem
Services: Fire Prevention,
Erosion Control, Air Control, Noise
Regulation, Endangered Species,
Pollination, Water Purification, Soil
nutrients etc
.Sustainable Forest Plantation
.Afforestation/Reforestation
.Agroforestry, farming conservation
with nature-based actions
.Pro-Biodiversity Businesses inc. “Green”
Production, Ecotourism, Research
.Forest Conservation,
.Restoration of Natural Assets
on Private or Public Lands
Public goodsPrivate assets
Land use asset classes
Nature of outputs
Available Financing Instruments
.Equity/Equity
Funds
.Senior or Mezz
Loans
.Equity/VC or Seed Funds
.Secured Loans
.Layered Equity/Debt Funds
.Loans to Public Sector
.Blending
.Grants
Outputs, Investors and Financing Instruments for Land Use Projects
<------------------------------------------------------------- Green Bonds? --------------------------------------------------------->
.Normal or Layered
Equity/Debt Funds with
activation of revenues
(carbon, PES, offsets…)
European Investment Bank
9European Investment Bank Group
.Green Infrastructure
Investors
Private Investors & Funds Banks Private Sector Companies & VC funds Donors Governments
<-------------------------------------- DFIs , Impact Investors ----------------- > Philanthropists
10/06/2015

10. Disclaimer
This presentation has been prepared by the European Investment Bank (the “Bank” or “EIB”) for information purposes only
and should not be taken as investment advice. Certain sections of this presentation contain forward-looking statements that
are based on expectations, estimates, projections and assumptions. These statements are not guarantees of future
performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and
trends may differ materially from what is forecast in such forward-looking statements. The Bank does not undertake any
obligation to update or publicly release any revisions to this presentation to reflect events, circumstances or changes in
expectations after the date of this presentation.
The Bank specifically does not make any representation, warranty or assurance of any kind, expressed or implied, or
assumes any liability regarding the accuracy, completeness and up-to-dateness of any of the information contained in this
presentation. The Bank accepts no responsibility for any consequences of the use of the information provided in this
presentation.
This presentation constitutes neither an offer to sell nor an invitation to purchase securities, nor is it intended to serve as a
basis for any kind of obligation, contractual or otherwise. Securities of the Bank may not be offered or sold in the United
States nor to U.S. persons outside the United States unless the offering or sale is registered under US securities laws.
Similar restrictions may apply in other countries.
10/06/2015 European Investment Bank Group 10