EIB fund to lend €200m to small firms

State-owned AIB will extend €200m in funding to SMEs through a joint venture with the European Investment Bank (EIB).

AIB will pass on the cheaper rate of funding from the EIB to SMEs who apply through the fund. The discount is 1.25%, which means the lending rate on the fund will be 5.25%.

Speaking at a press conference in Dublin yesterday to announce the deal, EIB president Werner Hoyer said this was his fourth time in Dublin since he took over the top job 16 months ago.