Following signature of a Cooperation Agreement between the European Commission and European Investment Bank (EIB), clarifying risk sharing, the pilot phase of the project bond initiative is ready for roll-out. The Europe 2020 Project Bond Initiative aims to improve capital market financing of infrastructure.

The Europe 2020 Project Bond Initiative, which is designed to stimulate capital market financing for infrastructure delivered under ‘project finance’ structures, including Public Private Partnerships (PPPs), is ready for roll-out, following signature of a Cooperation Agreement between the European Commission and European Investment Bank (EIB) clarifying risk sharing. The pilot phase of the EU project bonds initiative was launched by the Council in July 2012.

Werner Hoyer, President of the European Investment Bank, stressed that the Project Bond Initiative provides an opportunity for re-opening capital markets as a source of financing for crucial transport, energy and communications infrastructure essential for ensuring growth and competiveness in Europe; at the same time, European Commission Vice President Olli Rehn underlined that this project is a key element in the Compact for Growth. It is an innovative means of unlocking private investment in infrastructure, enhancing competitiveness and helping to boost growth and job creation.

The Project Bond instrument is intended to be an integral part of the EU´s Connecting Europe Facility for 2014-2020. The pilot phase will benefit from €230 million from the EU budget and will focus on encouraging capital market contributions worth more than €4 billion for infrastructure investment in the transport, energy and communications sectors.