€150m loan offer from EIB

THE European Investment Bank has made €150 million available for small and medium-sized Irish business borrowers involved in long-term capital intensive projects.

AIB will handle the funds in the form of a global credit facility which they will lend-on to individual SMEs.

The money is targeted for financing capital investment projects undertaken by SMEs in industry and services, aimed at generating growth and employment by increasing their productivity and competitiveness.

AIB has acted as a global loan intermediary for the EIB in Ireland for some time and this loan brings the total amount of global loans to AIB over the past five years to €460 million.

EIB vice-president Michael Tutty and AIB chief financial officer Declan McSweeney signed the facility in Dublin. Mr Tutty, who is Ireland’s nominee to the EIB, said: “EIB global loans represent a well-established tool to support SMEs.

"We are delighted to increase the joint EIB/AIB financing of the SME sector which plays such a significant role in creating jobs and developing the economy, particularly so in the less-developed areas of Ireland and Northern Ireland.”

Mr McSweeney said that through EIB funding they can now offer an extended range of term lending options and an expanded range of rate options particularly suited for small and medium-sized business borrowers involved in long-term capital intensive projects.

“The new tranche of funds is in addition to six other loan agreements that had been co-signed with the European Investment Bank stretching back to 1993.”

EIB global loans are special credit lines to selected partner banks operating in the individual countries.

The EIB finances small and medium-size projects that cost between €40,000 and €25 million via its global loans.