COMMISSION DELEGATED REGULATION (EU) 2021/1702
of 12 July 2021
supplementing Regulation (EU) 2021/523 of the European Parliament and of the Council by setting out additional elements and detailed rules for the InvestEU Scoreboard
Article 1
Article 2
ANNEX
1.
General principles
1.1.
Content of the InvestEU Scoreboard
1.2.
Assessment of the pillars
Points |
Score |
1 |
Fair |
2 |
Good |
3 |
Very good |
4 |
Excellent |
1.3.
Publication of the InvestEU Scoreboard
2.
The InvestEU Scoreboard
2.1.
Pillar 1 – Contribution of the financing or investment operation to EU policy objectives
2.2.
Pillar 2 – Description of the additionality of the financing or investment operation
2.3.
Pillar 3 – Market failure or sub-optimal investment situation addressed by the financing or investment operation
2.4.
Pillar 4 – Financial and technical contribution by the implementing partner
2.5.
Pillar 5 – The impact of the financing or investment operation
2.5.1.
Direct financing
2.5.2.
Intermediated financing
2.6.
Pillar 6 – Financial profile of the financing or investment operation
2.7.
Pillar 7 – Complementary indicators
APPENDIX 1
Pillar 2 – Description of the additionality of the financing or investment operation
APPENDIX 2
Pillar 3 – Market failure or sub-optimal investment situation addressed by the financing or investment operation
Indicator |
Fair (= 1) |
Good (= 2) |
Very good (= 3) |
Excellent (= 4) |
Market failure or sub-optimal investment situation addressed by the financing or investment operation |
Standard financing or investment operation addressing a market failure or sub-optimal investment situation inherent to the principal market/sector. OR Financing or investment operation addressing a principal market failure that is at the lower end of the spectrum of its prevalence (significance) in the respective market. |
Financing or investment operation addressing: (i) a market failure or sub-optimal investment situation inherent to the principal market/sector; as well as (ii) another relevant market failure. OR Financing or investment operation addressing a principal market failure that is at the medium range of the spectrum of its prevalence (significance) in the respective market. |
Financing or investment operation addressing: (i) a market failure or sub-optimal investment situation inherent to the principal market/sector; as well as (ii) at least two other relevant market failures or sub-optimal investment situations. OR Financing or investment operation addressing a principal market failure that is at the high end of the spectrum of its prevalence (significance) in the respective market. |
Financing or investment operation that are exemplary or transformative in addressing several market failures or sub-optimal investment situations by way of disruptive innovation/technology or spill-over effects. |
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APPENDIX 3
Pillar 4 – Financial and technical contribution by the implementing partner
Indicators |
Fair (= 1) |
Good (= 2) |
Very good (= 3) |
Excellent (= 4) |
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FVA(1) <= 5 bps |
5 bps < FVA<= 30 bps |
30 bps < FVA <= 100 bps |
FVA > 100 bps |
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Any other financing or investment operation not listed in the following sections. |
Senior tranches. |
Subordinated loans, mezzanine tranches, hybrid bonds, contingent loans and guarantee products. |
Equity and quasi-equity operations. |
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The final recipient regularly raises funds at similar maturities or the extension of the tenor is less than 30 %. |
The final recipient could readily raise funds at similar maturities or extension of the tenor is between 30 % and 49 %. |
The final recipient could, with some difficulty, raise funds at similar maturities or extension of the tenor is between 50 % and 99 %. |
The final recipient is unable to raise funds at similar maturities or extension of the tenor is 100 % or more. |
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Scoring elements applicable:
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None of the above elements are applicable. |
One or two of the above elements are applicable. |
Three to four of the above elements are applicable. |
At least five of the above elements are applicable. |
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The involvement of the implementing partner in the financing or investment operation is not expected to have: (i) catalytic effect on attracting other co-financiers/guarantors/investors. (e.g. IP co-finances with borrower’s own funds only); and/or (ii) any signalling effect in the respective market. |
The involvement of the implementing partner in the financing or investment operation is expected to have some impact on mobilising other co-financiers/guarantors/investors and signalling that the operation/investments are expected to be sound and worth supporting, thereby facilitating the full financing and implementation. |
The involvement of the implementing partner in the financing or investment operation is expected to have a significant impact on other financiers’/guarantors’/investors’ decision to commit to or to co-invest alongside the operation, thus having a strong catalytic effect. This includes situations whereby the implementing partner has been instrumental in combining its funding with third party grants or other forms of external support for specific projects/programmes. |
The involvement of the implementing partner in the financing or investment operation is expected to be key for the materialisation of the operation and/or achieving targeted financing level (without the IP, the project is not likely to go ahead or not with the same speed or size). This includes e.g. i) implementing partner taking the role of corner stone investor, ii) the combination of the loans by the implementing partner with third party public and/or private resources. |
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The financial structuring expertise of the implementing partner is not required, and the involvement of the implementing partner is expected to be marginal. Origination of the investment does not benefit from the expertise of the implementing partner. |
The financial structuring expertise of the implementing partner is expected to have a positive impact on the financing structure of the investment and is expected to be of value to the counterparty, and/or origination of the investment is expected to benefit from the expertise of the implementing partner. |
The financial structuring expertise of the implementing partner is expected to have a significant impact on the financing structure of the investment and is expected to be of significant value to the counterparty (e.g. through accelerating financial close or applying standardised structures, etc.) and/or origination of the investment is expected to benefit from the expertise of the implementing partner. |
The contribution of the implementing partner with its financial structuring expertise is expected to be innovative and to have a high value to the counterparty (e.g. through accelerating financial close significantly or applying standardised structures to complex cases, technical assistance or advisory support for the financial structuring of the operation, financial sector experts, etc.). |
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The technical expertise and/or advisory services of the implementing partner were not needed by the final recipient. |
The technical advice of the implementing partner ensures the quality of the investment through project-specific disbursement conditions, ad-hoc interventions (e.g. monitoring missions to ensure compliance with disbursement conditions). OR Annual project progress reports. |
The implementing partner supports the technical preparation or structuring of the financing or investment operation to align it better with the policy objectives. OR Targeted inputs (technical, economic, procurement, climate, environment, social), and valuable guidance on project features or design options, regular interventions (e.g. monitoring missions to ensure compliance with standards). OR Targeted monitoring (procurement, climate, environment, social). |
The implementing partner supports the technical preparation or structuring of the financing or investment operation to align it fully with the policy objectives. OR The implementing partner’s technical support has a major impact on the technical or economic quality of the investment, notably through specific technical assistance or advisory support provided. OR Significant physical monitoring, such as for complex projects or high-risk projects. |
Indicators |
Fair (= 1) |
Good (= 2) |
Very good (= 3) |
Excellent (= 4) |
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Any other financing or investment operation not listed in the following sections. |
Senior tranches. |
Subordinated loans, mezzanine tranches, hybrid bonds, contingent loans and guarantee products. |
Equity and quasi-equity operations. |
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The involvement of the implementing partner in the financing or investment operation is not expected to have: (i) catalytic effect on attracting other co-financiers/guarantors/investors. (e.g. IP co-finances with borrower’s own funds only); and/or (ii) any signalling effect in the respective market. |
The involvement of the implementing partner in the financing or investment operation is expected to have some impact on mobilising other co-financiers/guarantors/investors and signalling that the investments are expected to be sound and worth supporting, thereby facilitating the full financing and implementation. |
The involvement of the implementing partner in the financing or investment operation is expected to have a significant impact on other financiers’/guarantors’/investors’ decision to commit to or to co-invest alongside the operation, thus having a strong catalytic effect. This includes situations whereby the implementing partner has been instrumental in combining its funding with third party grants or other forms of external support for specific projects/programmes. |
The involvement of the implementing partner in the financing or investment operation is expected to be key for the materialisation of the operation and/or achieving targeted financing level. This includes e.g. (i) implementing partner taking the role of corner stone investor; (ii) the combination of the loans by the implementing partner with third party public and/or private resources. |
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The financial structuring expertise of the implementing partner is not required, and the involvement of the implementing partner is expected to be marginal. Origination of the investment does not benefit from the expertise of the implementing partner. |
The financial structuring expertise of the implementing partner is expected to have a positive impact on the financing structure of the investment and is expected to be of value to the counterparty, and/or origination of the investment is expected to benefit from the expertise of the implementing partner. |
The financial structuring expertise of the implementing partner is expected to have a significant impact on the financing structure of the investment and is expected to be of significant value to the counterparty (e.g. through accelerating financial close or applying standardised structures, etc.) and/or origination of the investment is expected to benefit from the expertise of the implementing partner. |
The contribution of the implementing partner with its financial structuring expertise is expected to be innovative and to have a high value to the counterparty (e.g. through accelerating financial close significantly or applying standardised structures to complex cases, technical assistance or advisory support for the financial structuring of the operation, financial sector experts, etc.). |
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The implementing partner is not expected to provide any technical advice or capacity building to the intermediary. |
The implementing partner is expected to set particular conditions related to the implementation of the underlying transactions and provides advice to the intermediary to select them or expects that advice in the implementation of the criteria related to the financing or investment operation will be needed by the intermediary. |
The implementing partner expects to participate in the technical assistance or training provided to the intermediary in order to improve its performance or capacity to meet requirements (e.g. on reporting, eligibility, sustainability aspects and procurement standards). The assistance is expected to go beyond the standard due diligence of the IP at appraisal stage. |
Extensive technical assistance or advice is expected to be provided to support the intermediary to develop business segments of particular impact as reflected in InvestEU policy areas. The assistance is expected to go beyond the standard due diligence of the IP at appraisal stage. |
APPENDIX 4
Pillar 5 – Impact of the financing or investment operation
Impact of the financing or investment operation |
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Fair (= 1) |
Good (= 2) |
Very good (= 3) |
Excellent (= 4) |
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> 0 % – 5 % |
5 %-7 % |
7 %-10 % |
> 10 % |
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The scoring will be done based on duly justified qualitative assessment of the project’s socioeconomic costs and benefits, and its expected contribution to economic activity and growth. |
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Construction/implementation phase (FTE/EUR million) < 3 |
Construction/implementation phase (FTE/EUR million) 3-6 |
Construction phase/implementation (FTE/EUR million) 6-8 |
Construction phase/implementation (FTE/EUR million) > 8 |
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Operation phase (FTE/EUR million) < 0,4 |
Operation phase (FTE/EUR million) 0,4-0,7 |
Operation phase (FTE/EUR million) 0,7-1,1 |
Operation phase (FTE/EUR million) > 1,1 |
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(weight – 45 %) + bonus |
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Negative impacts not fully mitigated, no significant positive impact. |
Negative impacts partly mitigated, some positive impact. |
Negative impacts fully mitigated, significant positive impact. |
Negative impacts fully mitigated,very substantial positive impact. |
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Negative impacts not fully mitigated, no significant positive impact. |
Negative impacts partly mitigated, some positive impact. |
Negative impacts fully mitigated,significant positive impact. |
Negative impacts fully mitigated, very substantial positive impact. |
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Negative impacts not fully mitigated, no significant positive impact. |
Negative impacts partly mitigated, some positive impact. |
Negative impacts fully mitigated, significant positive impact. |
Negative impacts fully mitigated, very substantial positive impact. |
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Bonus Positive agenda checklist (weight: 22,5 % in total for the three dimensions) |
n/a |
n/a |
n/a |
If yes, see Table 3 for more details |
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Fair |
Good |
Very good |
Excellent |
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Climate 15 % |
Negative impacts and risks related to the project(2) (weight: 50 %) |
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OR
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Positive impacts resulting from the project, no voluntary measures(3) taken by the project promoter/final recipient (weight: 50 %) |
No significant positive impacts were identified. |
Some positive impacts on climate change mitigation or adaptation could be identified. |
Significant positive impacts (the objective of contribution to climate change mitigation or adaptation is explicitly stated, but it is not the fundamental reason for which the project is undertaken). |
Substantial positive impacts (the project is entirely dedicated to climate change mitigation or adaptation, it is the fundamental reason for which the project is undertaken). |
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Voluntary measures taken to enhance the project’s climate performance (weight: 7,5 % (bonus)) |
On a voluntary basis, the project promoter under the guidance of the implementing partner, will undergo one or more of the following actions, as relevant for the project:
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Environment 15 % |
Negative impacts and risks related to the project (50 %) |
there are some significant negative impacts or risks that were not fully mitigated |
significant negative impacts or risks were reduced or limited through measures envisaged to avoid, prevent, reduce or, if possible, offset any identified significant adverse effects)) |
some negative impacts or risks remain after the mitigation, but they are not significant and no further measures are necessary |
no or only negligible negative impacts or risks after mitigation (or not requiring mitigation) |
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Positive impacts resulting from the project, no voluntary measures taken by the project promoter/final recipient (weight: 50 %) |
no significant positive impacts |
some positive impacts on the environment elements could be identified |
significant positive impacts (the objective of contribution to environment objective is explicitly stated, but it is not the fundamental reason for which the project is undertaken) |
substantial positive impacts (the project is entirely dedicated to environment objective, it is the fundamental reason for which the project is undertaken) |
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Voluntary measures taken to enhance the project’s environmental performance (weight: 7,5 % (bonus)) (bonus) |
On a voluntary basis, the project promoter under the guidance of the implementing partner, will undergo one or more of the following actions, as relevant for the project:
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Social 15 % |
Negative impacts and risks related to the project (weight: 50 %) |
There are some significant negative impacts that cannot be fully mitigated or compensated |
Some significant negative impacts were reduced or limited through measures envisaged to avoid, prevent, reduce or, if possible, offset any identified significant adverse effects |
Some negative impacts still remain after the mitigation, but they are not significant and no compensation measures are necessary |
No or only negligible negative temporary impacts after mitigation (or not requiring mitigation) |
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Positive impacts resulting from the project, no voluntary measures taken by the project promoter/final recipient (weight: 50 %) |
No significant positive impacts |
Some positive impacts on the social aspects could be identified. |
Significant positive impacts (the objective of contribution to social aspects is explicitly stated, but it is not the fundamental reason for which the project is undertaken) |
Substantial positive impacts (the project is entirely dedicated to social objectives, it is the fundamental reason for which the project is undertaken) |
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Voluntary measures taken to enhance the project’s social performance (weight: 7,5 %(bonus)) |
On a voluntary basis, the project promoter under the guidance of the implementing partner, will undergo one or more of the following actions, as relevant for the project:
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Impact of the financing or investment operation |
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Fair (= 1) |
Good (= 2) |
Very good (= 3) |
Excellent (= 4) |
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Limited expected scale of finance (< 2 times). |
Moderate expected scale of finance (between 2 and 3 times). |
High expected scale of finance, (between 3 to 5 times). |
Considerably high-expected scale of finance, (beyond 5 times). |
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The financing or investment operation allows the intermediary(-ies) to offer more favourable terms to final recipients via:
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None of the above elements are applicable. |
One or two of the above elements are applicable. |
Two to three of the above elements are applicable. |
More than three of the above elements are applicable. |
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Financing/investment activities expected to support well-established intermediaries, maintaining existing financing channels mostly at local level with limited cross fertilisation or interactions with wider ecosystem. |
Financing/investment activities expected to largely support well-established intermediaries, scaling up or expanding financing channels beyond their local ecosystem to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. |
Significant part of the financing/investment activities are expected to be delivered by supporting new intermediaries, including new category of intermediaries, or by developing alternative financing mechanisms or investment channels to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. |
Financing/investments activities aim at supporting novel interventions in a sector in line with the policy priorities as defined in the guarantee agreements, or vertical, and/or by fostering partnerships, development of platforms or otherwise systematic collaborations within wider ecosystem to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. |
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Number of jobs expected to be supported at the level of final recipients (weight: 20 %) |
Number of jobs (including seasonal ones and part-time jobs) and/or self-employed persons expected to be supported per EUR million of funding by the implementing partner, is expected to be:
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Number of jobs (including seasonal ones and part-time jobs) and/or self-employed persons expected to be supported per EUR million of funding by the implementing partner, is expected to be:
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Number of jobs (including seasonal ones and part-time jobs) and/or self-employed persons expected to be supported per EUR million of funding by the implementing partner, is expected to be:
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Number of jobs (including seasonal ones and part-time jobs) and/or self-employed persons expected to be supported per EUR million of funding by the implementing partner, is expected to be:
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APPENDIX 5
Pillar 6 – Financial profile of the financing or investment operation
Debt-type operations (1) |
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Example 1 |
Example 2 |
Financial profile indicator (in line with the guarantee agreement) |
Expected loss |
Transfer rates |
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Range (where relevant, as defined in the guarantee agreement) |
X % ≤ EL ≤ Y % |
n.a. |
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Underlying Metrics |
Expected loss of the financing or investment operation Expected loss of the financial product/portfolio |
Applicable transfer rate for the relevant portfolio/financial product based on the expected loss of the financing or investment operation |
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Equity-type operations |
Financial profile indicator (in line with the guarantee agreement) |
Internal Rate of Return (IRR), counterparty rating for funds or other relevant metric(s) to be agreed in the guarantee agreement Rating of the counterparty, where available |
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Range (where relevant, as defined in the guarantee agreement) |
X ≤ IRR or other relevant metric(s) ≤ Y |
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Underlying Metrics |
Internal Rate of Return (IRR) for funds or other relevant metric(s) to be agreed in the guarantee agreement Rating of the counterparty |