21 Jul EIB & SaarLB sign $132m deal to invest in renewables
The European Investment Bank (EIB) has signed a US$132 million guarantee agreement with German bank Landesbank Saar (SaarLB) for investments in the renewable energy sector.
The EIB will cover up to 50% of the risk on 10 existing SaarLB loans for both wind and solar projects in France.
Ambroise Fayolle, EIB’s France and Germany operations vice-president said: “We have for many years been working very closely and constructively with SaarLB to put together loans in the renewable energies field.”
The agreement will facilitate SaarLB to make almost $263 million of additional loans available for renewables projects.
“We have long been financing renewable energy projects in Germany and France as they contribute to structurally change and prepare for the future in both countries,” stated Frank Eloy, SaarLB’s director.
“And at the same time, they form an important part of our SME-focused business model. We are delighted that the EIB guarantee is increasing our scope for additional lending and that we are building on our excellent long-term cooperation with the EIB.”
EFSI is part of the investment plan for Europe that allows the European Union (EU) to invest $415 million over the next three years.
This is the first time that EIB has used the EFSI guarantees for this type of risk sharing.