On October 19th the European Commission, Jyrki Katainen Vice-President for Jobs, Growth, Investment & Competitiveness, holds in Brussels a high level seminar on The Investment Plan for Europe: moving towards EFSI 2.0 Filippo Addarii, Fiorenza Lipparini and Francesco Mandruzzato form Lendlease will present an EFSI success story: the new public hospital in Treviso.
Speaking of Impact Investing Innovation, in 2017, the EIB signed a loan of €29M with Ospedal Grando S.p.A. Treviso, to support the design, construction and operation of the new hospital. The loan agreement will finance the refurbishment of some existing buildings and the construction of new facilities. A second loan of €39M was then granted to fund a portion of public grants assigned to this project, bringing the total EIB support to €68M. This agreement was made possible by the support of the EFSI.
Most importantly, it is the first time that the financial benefits deriving from EIB’s lower cost of funding compared to other financers are allocated in favour of social impact initiatives.
“Ospedal Grando has been a unique platform to test the principles of impact investing in a social infrastructure project to scale impact. EIB and Lendlease optimised the financing of the project generating EUR 1.8m in savings, which will capitalise an impact vehicle committed to invest in entrepreneurial solutions with greater benefits for the community and providing financial returns to investors” – Francesco Mandruzzato, LendLease
PlusValue assisted LendLease in the conception, design and implementation of the impact investing strategy. “Infrastructural projects are engines for growth and innovation. Everybody knows it has positive externalities, but with the new hospital in Treviso positive impact has been embedded in business model — making it a win-win for all parties involved. This project also proves that impact investing can be mainstream, involving institutional investors and big industrial players. This is a step towards a renewal of capitalism and we don’t want to stop here.” — Filippo Addarii, CEO, PlusValue
Impact investing embodies the power of financial markets to generate value for society, positioning itself along the intellectual tradition initiated by Adam Smith. Specifically, impact investing’s mission it to address social problems by channelling private capital in entrepreneurial solutions and providing financial returns to investors for success, moving beyond philanthropy with all its limitations. Ultimately, PlusValue endeavours to have the outcomes of the Treviso Hospital project act as a basis to transform the entire business model for financing social infrastructure through re-aligning public and private interests and, if successful, used to finance more social infrastructure (e.g. hospitals, schools, affordable housing) in Europe and worldwide.