Organizational Set Up
The European Energy Efficiency Fund (eeef) S.A., SICAV-SIF is a “société d’investissement à capital variable” governed by Luxembourg law of February 13, 2007 (as amended) and was initiated by the European Commission in cooperation with the European Investment Bank. The initial capitalization provided by the European Commission was increased with contributions from the sponsors European Investment Bank, Cassa Depositi e Prestiti as well as the Investment Manager Deutsche Bank.
The Supervisory Board represents the Fund's shareholders. It conducts a permanent supervision of the management of the Fund and provides strategic advice to the Management Board on the overall development of the Fund's activities. It is appointed by the General Meeting of Shareholders.
The Fund’s shareholders are represented by the Management Board, which oversees the Fund’s activities and is responsible for strategic decisions. The Management Board is the legal representative of the Fund. In compliance with eeef's founding documents and applicable laws and regulations, it has an exclusive power to administer and manage the Fund.
The Management Board acts on behalf of the Fund, oversees its activities and is responsible for strategic decisions. The Management Board is the legal representative of the Fund. In compliance with eeef's founding documents and applicable laws and regulations, it has the power to administer and manage the Fund.
The Investment Manager conducts the Fund’s business on behalf of the Management Board and the Investment Committee.
The Investment Manager also manages the European Commission and the eeef Technical Assistance Facility at arm’s length.
Institutions backing the Fund
The European Commission is one of the main institutions of the European Union. It represents and upholds the interests of the European Union as a whole, drafts proposals for new European laws and manages the day-to-day business of implementing European Union policies and spending certain European Union funds. Promoting sustainable economic and social reform in Europe is at the heart of the Commission's political agenda. The general European Union energy and climate goals have been formalized by the European Commission into the Energy Union strategy and further developed in the 2030 Framework for Climate and Energy, with the Clean Energy For All Europeans package of 2016.
The Council of Ministers and the European Parliament agreed in December 2010 to a European Commission proposal, made the same year in May, to allocate approximately EUR 146 million from the European Energy Programme for Recovery (i.e. 3.7% of the total EEPR envelope) towards a new financial facility dedicated to sustainable energy. Thereof EUR 125 million are placed as risk capital into the Fund to leverage public and private funding and about EUR 21 million to TA and awareness raising activities.
The EU contribution comes from funds mobilised for the EEPR in 2009 which could not immediately be allocated to projects in the sectors of infrastructure, off-shore wind and carbon capture and storage.
The European Investment Bank (EIB) is the bank of the European Union and is owned by the 27 Member States. It aims to use its special expertise and resources to make a difference to the future of Europe and its partners by supporting sound investments which further EU policy goals. Around 90 percent of its activity is within the EU, with a focus on six areas: supporting disadvantaged regions, small and medium-sized enterprises, innovation and human capital and projects in the environmental, transport and energy sectors. It also lends to EU partner countries around the world in support of EU development policy and economic partnership agreements.
Cassa Depositi e Prestiti SpA (CDP) is a joint-stock company under public control, with the Italian government holding 82.8 percent, a broad group of bank foundations holding 15.9 percent, the remaining percentage being treasury shares (as of March 2017). CDP manages a major share of the savings of Italians – postal savings – which it uses to help support the growth of the country, providing financing to major strategic sectors: transportation networks and local public services, public building and social housing, energy and communication, support for small and medium enterprises and export finance, research and innovation, the environment and renewable energy. It is a key partner for public entities, the development of infrastructure projects and the growth and international expansion of Italian enterprises.
Investor and Investment Manager
Deutsche Bank is a leading global investment bank with a strong private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 98,138 employees in 70 countries (as of December 31, 2016), Deutsche Bank offers unparalleled financial services throughout the world. As a global corporate citizen, it shares the responsibility to ensure that future generations enjoy a healthy environment as well as stable economic and social conditions.
Fund share's structure
The European Energy Efficiency Fund (eeef) is a public-private partnership open to investments from institutional investors, professional investors and other well informed investors within the meaning of the Luxembourg SIF law. In particular targeted investors are donor agencies, governments, international financial institutions, and professional private investors.
eeef aims to provide commercial returns to its investors. The returns of its shares follow a waterfall principle and allow investments into three different categories:
C-Shares bear the highest risk (“First Loss”) and serve as a risk buffer for the more senior share categories.
B-Shares rank senior to C-Shares and are remunerated on a 6m Euribor + Spread basis. Depending on the Fund's profitability, complementary dividends are possible.
A-Shares rank senior to B-Shares and are also remunerated on a 6m Euribor + Spread basis, however at a lower level than B-Shares to allow for risk/return adjustments. Depending on the Fund's profitability, complementary dividends are possible.
In addition, Notes may be issued in the future. They rank senior to shareholders, but junior to all other creditors of the Fund.