Preliminary assessment of the first payment request of Romania

instrument provides access to finance in the form of equity and quasi equity to SMEs, mid-caps including start-ups, companies in early, advanced growth and expansion stages (Annex A.2 – policy objective) and infrastructure projects (Annex A.5 – investment policy).

   The addendum specifies that the targeted number of beneficiaries under RRF over the entire
    duration of the Agreement is 100 (Amendment 2.i).

   The Financing Agreement and its addendum includes selection criteria to ensure compliance
    with the “Do no significant harm” Technical Guidance (2021/C58/01) of supported transactions.
    The application of the Commission Notice on Technical guidance on sustainability proofing for
    the InvestEU Fund” is recalled in Annex G as well as in the addendum (Amendment 2.ii).
    Amendment 2.ii of the Addendum explicitly refers to an exclusion list that is in line with the
    provisions set out in the CID Annex. More specifically, according to this list the financial
    instrument cannot target:
        o activities and assets related to fossil fuels, including downstream use (with the related
            exception concerning projects in power and/or heat generation, as well as related
            transmission and distribution infrastructure, using natural gas);
        o activities and assets under the EU Emission Trading System (ETS) achieving projected
            greenhouse gas emissions that are not lower than the relevant benchmarks (with

further requirements concerning supported activities achieving projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks); o activities and assets related to waste landfills, incinerators (with related exceptions, as defined in the CID Annex) and mechanical biological treatment plants (with related exceptions, as defined in the CID Annex); o activities and assets where the long-term disposal of waste may cause harm to the environment.

The Financing Agreement and its addendum also include the requirement for beneficiaries that derived more than 50% of their revenues during the preceding financial year from activities or assets in the exclusion list to adopt and publish green transition plans. It moreover ensures compliance of the instrument with the relevant EU and national environmental legislation.

   Clauses 8.1 to 8.4 mention that the Government of Romania shall remunerate the EIF with a
    fixed management fee as well as a variable performance fee.

   Annex I.6 to the Financing Agreement specifies that the structure of the fund (determined by
    the types of underlying funds and final recipients) will allow for an indicative leverage effect of
    1.5 of the allocated amount.

   Clause 5.2 of the Financing Agreement mentions that any returns to the Fund or financial
    instruments (i.e., “Proceeds of Operations”) generated in the course of a calendar year shall be
    used for the payment and/or reimbursement of management fees and performance fees, of
    any unforeseen additional expenses and of shortfalls (if any). The remaining amount shall be
    used for the same policy goals (that is, “entering into commitment agreements with underlying
    funds) in accordance with the investment strategy (Annex 1).

   The Financing Agreement set up adequate mechanisms for monitoring and reporting the
    performance of the instrument. This Financing Agreement commits the EIF to prepare a semi-
    annual progress report (clause 15.2). The report shall include among others a list of final
    recipients and their characteristics, the total amounts approved by the investment committee
    and the amount transferred to final recipients, a summary of the performance of the fund and a

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