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EIB loan to mitigate climate change and support EU presence in India

By Amarendra Bhushan for CEOWORLD Magazine Updated:December 3, 2008

The European Investment Bank (EIB) is providing EURO 150 million to the Export-Import Bank of India (EXIM Bank) to part-finance investments that will contribute to the mitigation of climate change or to support European Union (EU) presence in India. Mr. T.C. Venkat Subramanian, Chairman and Managing Director of EXIM Bank, and EIB Vice-President Carlos Costa signed the loan agreement on Tuesday in Luxembourg.

“The financing operation we are signing today directly follows on the Joint Statement issued at the EU-India summit held one year ago and support the EU-India Strategic Partnership, which we wish to see developing further in the near future”, said EIB Vice-President Carlos Costa.

EXIM Bank will make available the proceeds of the loan to final beneficiaries carrying out investments that contribute to one of the following objectives: (a) climate change mitigation, through projects in the renewable energy and energy efficiency sectors, an objective that is expected to use up some two thirds of the loan, or (b) increase EU presence in India, through direct investment or transfers of technology and know-how from Europe, where one third of the loan is focussed.

This is the second operation of the Bank in India, where the first operation dates back to 1993, a loan to Power Grid Corporation of India to upgrade the national electricity grid.

Background:

The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1957, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of the EU co-operation policy with non-EU countries.

Since 1993 the Bank has carried out four successive lending mandates for Asia and Latin America. Under the current mandate (ALA IV), covering the period 2007-2013, the EIB is authorised to lend up to EURO 3.8 billion for financing operations that contribute to climate change mitigation or to support the EU presence in those regions through Foreign Direct Investment, transfer of technology and know-how. The EURO 3.8 billion regional ceiling is broken down into indicative sub-ceilings of EURO 1 billion for Asia and EURO 2.8 billion for Latin America.

Press contact:

Mercedes Sendin de Cáceres – email: m.sendin@bei.org – tel.: +34 91 431 13 40

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