17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa

. Project Bond Initiative
The risk-sharing instrument for project bonds shall be designed as a sub-ordinated debt financing in
order to facilitate financing for project companies raising senior debt in the form of bonds. This
credit enhancement instrument shall aims at helping the senior debt to achieve an investment grade
credit rating
It shall rank behind the senior debt but ahead of equity and financing related to equity.
The subordinated debt financing shall not exceed 20% 63 64 of the total amount of the senior debt
issued.
2. Financial parameters and the leverage
Risk- and revenue-sharing parameters shall be set in such a way that specific policy objectives
including targeting of particular categories of projects can be achieved while still preserving the
market oriented approach of the Debt Instrument.
The expected leverage of the Debt Instrument — defined as the total funding (i.e. Union
contribution plus contributions from other financial sources) divided by the Union contribution —
shall be expected to range from 6 to 15, depending on the type of operations involved (level of risk,
target beneficiaries, and the debt financing concerned).
3. Combination with other sources of funding
Funding from the Debt Instrument may be combined with other ring-fenced budgetary contributions
listed below,, subject to the rules of the Financial Regulation and the relevant legal base :
(a) other parts of the Connecting Europe Facility,
(b) other instruments, programmes and budget lines in the Union budget;
(c) Member States, including regional and local authorities, that wish to contribute own resources or
resources available from the Cohesion Policy funds without changing the nature of the instrument.
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To be reviewed following 2013 interim report of the pilot phase and the 2015 external full
independent evaluation.
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Reservation on deletion of 30%: Commission, IT, LU.
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ANNEX TO ANNEX DG E 2 A E