17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
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Prior to the finalisation of the design of the Debt and Equity Instruments, the Commission shall<br />
carry out an ex-ante assessment in accordance with the Financial Regulation. Evaluations of<br />
existing, comparable financial instruments shall contribute to this assessment, where appropriate.<br />
I. Debt Instrument<br />
1. Ge<strong>ne</strong>ral provisions<br />
The goal of the Debt Instrument shall be to contribute to overcoming deficiencies of the European<br />
debt capital markets by offering risk-sharing for debt financing. Debt financing shall be provided by<br />
entrusted entities or dedicated investment vehicles in the form of senior and sub-ordinated debt or<br />
guarantees.<br />
The Debt Instrument shall consists of a risk-sharing instrument for loans and guarantees and of the<br />
Project Bond Initiative. The project promoters may, in addition, seek equity financing under the<br />
Equity Instrument.<br />
a. Risk-sharing instrument for loans and guarantees<br />
The risk-sharing instrument for loans and guarantees shall be desig<strong>ne</strong>d to create additional risk<br />
capacity in the entrusted entities. This shall allow the entrusted entities to provide funded and<br />
unfunded subordinated and senior debt to projects and corporates in order to facilitate promoters'<br />
access to bank financing. If the debt financing is sub-ordinated, it shall rank behind the senior debt<br />
but ahead of equity and related financing related to equity.<br />
The unfunded subordinated debt financing shall not exceed 30% of the total amount of the senior<br />
debt issued.<br />
The senior debt financing provided under the Debt Instrument shall not exceed 50% of the total<br />
amount of the overall senior debt financing provided by the entrusted entity or the dedicated<br />
investment vehicle.<br />
<strong>17107</strong>/<strong>12</strong> <strong>FL</strong>/<strong>ne</strong> 79<br />
ANNEX TO ANNEX <strong>DG</strong> E 2 A E