News archive - European Project Bond pilot phase to go aheadBack
Recently the Council of the European Union, together with the European Parliament, agreed to a European Commission proposal to launch a pilot phase for the Project Bonds Initiative in 2012-2013.
This follows the EC’s proposal which was published last November and set out the aims of the pilot phase. If the pilot phase is successful, project bonds may be included as a financial instrument in the EU’s multiannual financial framework 2014-2020. €230 million has been set aside for the pilot phase from the EU’s existing infrastructure budget for the period 2012-2013.
By allowing projects easy access to capital, the Project Bonds Initiative will enable co-operation between private stakeholders, the European Investment Bank (EIB) and the EU to support the financing of commercially viable infrastructure projects in the areas of transport, energy and information communications technology (ICT). In this way, a leverage effect can be generated, which is greater than the normal EU-budget support for infrastructure projects. The project bonds will have an EIB guarantee designed to improve their credit rating, thus making them more attractive to longterm investment from the capital market, such as pension funds.
The full press notice can be read here.
Source: RTD Insight
- European Union (EU 27)
- International; Other
- Engineering and Technology
- Natural Sciences
Entry created by Ines Marinkovic on July 5, 2012