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European Investment Bank - Project Bond Credit Enhancement

Project Bond Credit Enhancement

Instrument description

The European Investment Bank (EIB) provides Project Bond Credit Enhancement (PBCE) in the form of a subordinated instrument—either a loan or contingent facility—to support senior project bonds issued by a project company for infrastructure projects. As a subordinated instrument, PBCE is designed to increase the credit rating of the senior bonds, not to extend the EIB’s AAA credit rating to the project.

PBCE can disburse a subordinated tranche in one of two ways:

  • Funded PBCE: Loan provided to the project company from the outset.
  • Unfunded PBCE: A contingent credit line that can be drawn if the cash flows generated by the project are not sufficient to ensure senior bond debt service or to cover construction cost overruns.

Eligible projects and transactions

Targeted at projects in areas of trans-European networks of transport, energy, and broadband/information and communications technology (ICT). PBCE is available to bond-financed transactions and not to bank-financed transactions. PBCE-supported projects will need to meet EIB’s regular eligibility criteria.

Eligible regions

Mainly European Union (EU) countries are eligible. Outside the EU, EIB support is governed by a series of mandates from the EU in support of EU development and cooperation policies in partner countries.

Key features

  • Size of coverage: The maximum size of PBCE available for a single transaction will be EUR 200 million or 20 per cent of the nominal of credit enhanced senior bonds, whichever is lower.

Eligible Countries

  • Flag of Austria
    Austria
  • Flag of Bulgaria
    Bulgaria
  • Flag of Croatia
    Croatia
  • Flag of Cyprus
    Cyprus
  • Flag of Czech Republic
    Czech Republic
  • Flag of Denmark
    Denmark
  • Flag of Estonia
    Estonia
  • Flag of Finland
    Finland
  • Flag of France
    France
  • Flag of Germany
    Germany
  • Flag of Greece
    Greece
  • Flag of Hungary
    Hungary
  • Flag of Ireland
    Ireland
  • Flag of Italy
    Italy
  • Flag of Latvia
    Latvia
  • Flag of Lithuania
    Lithuania
  • Flag of Luxembourg
    Luxembourg
  • Flag of Malta
    Malta
  • Flag of Netherlands
    Netherlands
  • Flag of Poland
    Poland
  • Flag of Portugal
    Portugal
  • Flag of Romania
    Romania
  • Flag of Slovakia
    Slovakia
  • Flag of Slovenia
    Slovenia
  • Flag of Spain
    Spain
  • Flag of Sweden
    Sweden
  • Flag of United Kingdom
    United Kingdom