EIB: PLN 200 mln for local infrastructure in Poland
Luxembourg, Luxemburg – The European Investment Bank (EIB) is participating with PLN 200 million in an issue of public sector-covered bonds for financing small and medium-scale projects implemented by public sector entities in the fields of infrastructure, environment, energy, health and education. This substitute for an intermediated loan is backed by loan receivables of BRE Bank Hipoteczny S.A.
This so far unique operation increases the number of EIB partner financing institutions providing intermediated EIB loans in Poland and broadens the possibilities of EIB support for the modernisation of local infrastructure throughout the country. The EIB’s involvement is designed to generate positive effects in terms of both access to longer-term funding and overall financing costs. It is also anticipated that, in some cases, the Bank’s contribution will provide an additional source of co-financing of Polish priority programmes financed by EU funds, thus enhancing the speed of their implementation. To increase the access of Polish municipalities and other public sector entities to long-term finance, the EIB is joining forces with well established financing institutions that know the local market, have public sector entities as their customers and command an extensive network of branches. EIB intermediated loans to partner banks have been developed as a successful tool for providing long-term funding for financing up to 50% of the total costs of smaller projects.
The prime objective of the EIB, the European Union’s long-term financing institution, is to contribute towards the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. In Poland, as in the other EU Member States, the European Investment Bank supports investment projects in order to reduce regional development disparities, strengthen economic competitiveness and improve living standards and the quality of life. Since 1990, the Bank has provided funds amounting to some EUR 14 billion for projects promoting European objectives in Poland.