EU funds for roads - CEDR

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Disbursement procedures
An EIB loan facility, once approved by the Board of Directors, can be drawn down in a number
of instalments, according to the borrower’s requirements. Typically, an EIB facility is available for
use over a two to three year period. Disbursements would be usually at short notice, 10 to 15
days following each disbursement request.
The maturity, repayment terms and amortisation profile of each draw down instalment can be
chosen by the borrower at the time of disbursement, facilitating active treasury management.
Decisions on timing and choice of currencies, maturities, and interest rate formulae are kept
open and decided upon at the time of each disbursement request.
Repayment
Repayment is normally on a semi-annual or annual basis. Grace periods for capital repayment
may be granted for the construction phase of the project.
For projects where the total cost is under €25 million, the EIB provides intermediated loans
(credit lines) to local, regional, and national banks. An EIB credit line may finance a maximum of
50% of the total cost of any project.
Credit lines are granted to intermediary banks and financing institutions in the country in which
the project is based. These institutions pass on the EIB funds to the promoters, generally SMEs
and local authorities.
The conditions of financing (interest rate, grace period, loan period etc.) are determined by the
respective EIB partner bank. Maturities typically range between 5 and 12 years.
To qualify as an SME, a company must have fewer than 250 employees, an annual turnover not
exceeding €50 million, and an annual balance sheet total of up to €43 million.
The lending decision for EIB loans via credit lines remains with the financial intermediary.
Promoters interested in EIB financing for projects under €25 million should contact the banks
and other intermediaries involved directly with a detailed description of their capital investment
together with the prospective financing arrangements. A list of intermediaries per country can be
found in the website of the EIB (www.eib.org).
The European Investment Fund (EIF)
The EIB is also the majority shareholder in the European Investment Fund (EIF), which is the
European Union’s specialised financial institution for small businesses (small or medium-sized
enterprises, SMEs). The EIF, which was established in 1994, makes venture capital investments
to support the emergence of a performing and homogenous European venture capital market.
Furthermore, the EIF’s SME guarantee instruments help SMEs access debt finance from a wide
range of intermediary banks and financial institutions.
More information on the EIF can be found in the website: www.eif.org
EU funds for roads