Division (b) Infrastructure and Innovation Window - Debt Sub-window

F1For debt-type operations, the EIB or the EIF shall carry out its standard risk assessment, involving the computation of the probability of default and the recovery rate. Based on these parameters, the EIB or the EIF shall quantify the risk for each operation. Such computation shall be performed without taking into account the EU guarantee, to reflect the overall risk of the transaction.

Each debt-type operation shall receive a risk classification (the ‘Transaction Loan Grading’) as per the EIB’s or the EIF’s system of loan gradings. Information on loan grading shall be included in the project documentation for the Investment Committee. Transactions with a higher risk profile than projects supported by EIB normal operations are referred to as special activities as defined in Article 16 of the EIB Statute and in the credit risk policy guidelines of the EIB. Operations supported by the EU guarantee shall typically have a higher risk profile than EIB normal operations and hence fall under the special activities. Transactions with a better loan grading can be included into the EFSI portfolio provided that a high added value is clearly demonstrated and their inclusion is consistent with the criterion of providing additionality.

Projects shall be economically and technically viable and the EIB’s financing shall be structured in line with sound banking principles and comply with the high-level risk management principles set by the EIB or the EIF in its internal guidelines. All relevant information shall be made available to the members of the Steering Board and of the Investment Committee.

Debt-type products shall be priced in line with Article 4(2)(a)(iv).