EIB and BNG Bank help public sector with low-cost investments
7 December 2016 0:00
The loan follows a cooperation agreement in which both financial institutions vowed to share knowledge and experiences with the goal of stimulating public investment in the Netherlands. The EIB will provide EUR 250 million to BNG Bank, who will on-lend this financing against low interest rates to local authorities, housing corporations and healthcare institutions. The scope is for projects with a maximum value of EUR 25 million.
Since the EIB does not finance more than 50% of the total value of any project, together with BNG Bank it will be possible to finance a total of at least EUR 500 million in projects. De interest rate for these clients will be lower than that of the regular loans.
"BNG Bank is a committed partner for a more sustainable Netherlands and its goal is to support government policy at the lowest possible rates. Through this lending facility BNG Bank can give smaller clients, who would otherwise not meet the requisites for EIB-lending due to their smaller size, the opportunity to benefit from EIB financing. Therefore, this agreement is perfectly in line with the bank's strategy", said Oliver Labe, member of BNG Bank's executive board.
"As a bank, the EIB has a comparable strategy towards smaller clients and the collaboration with BNG Bank comes at a very good time", added EIB Vice-President Pim van Ballekom. "There is a need for social housing in the Netherlands, where BNG Bank plays an important role in financing. This fits very well with European objectives. In this project several of the bank's priorities come together and we also give a signal, as a European financial institution, that we are available when and where we are needed."
EIB Vice-president Pim van Ballekom (left) and Oliver Labe, member of BNG Bank's executive board, signing the agreement in The Hague.
The European Investment Bank (EIB) is the long-term lending institution of the European Union. Being owned by the EU's 28 Member States it can borrow money very cheaply on the international capital markets. This way. the EIB makes long-term finance available for sound investment in order to contribute towards EU policy goals. In the Netherlands alone, nearly EUR 2.1 billion was lent to sound projects over the course of 2015.
BNG Bank is a committed partner for a sustainable society. Based on its AAA-rating, it supports government policy by extending low cost financing to, amongst others, municipalities, housing corporations and healthcare institutions. With a balance sheet of over EUR 160 billion, BNG Bank is the fourth biggest bank in the Netherlands.