17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa

II. Equity Instrument
1. General provisions
The goal of the Equity Instrument shall be to contribute to overcoming the deficiencies of European
capital markets by providing equity and quasi-equity investments.
The maximum amounts of the Union contribution shall be limited as follows:
- 33% of the target equity fund size or
- the co-investment by the Union in a project shall not exceed 30% of the total equity of a company.
The project promoters may, in addition, seek debt financing under the Debt Instrument.
2. Financial parameters and the leverage
Investment parameters shall be set in such a way that specific policy objectives, including the
targeting of particular categories of infrastructure projects, can be achieved while still preserving
the market-oriented approach of this instrument.
The expected leverage of the Equity Instrument — defined as the total funding (i.e. the Union
contribution plus all contributions from other investors) divided by the Union contribution shall be
expected in average to range from 5 to 10, depending on market specificities.
3. Combination with other sources of funding
Funding from the Equity Instrument may be combined with other ring-fenced budgetary
contributions listed below, subject to the rules of the Financial Regulation and the relevant legal
base:
(a) other parts of the Connecting Europe Facility,
(b) other instruments, programmes and budget lines in the Union budget; and
(c) Member States, including regional and local authorities, that wish to contribute own resources or
resources available from the Cohesion Policy funds without changing the nature of the instrument.
17107/12 FL/ne 84
ANNEX TO ANNEX DG E 2 A E