European Investment Bank (EIB)
Substantial lending available to UK corporates and universities for investment in R&D and Innovation
The European Investment Bank (EIB) – the investment bank of the EU - wants to raise awareness amongst UK research intensive corporates and universities about EIB loans available for investments in R&D and Innovation.
Corporates
EIB loans typically total about £150 million equivalent to cover expenditure over a three year period. Recent examples of UK lending include:
- Financing (approx £340 million) of Jaguar Land Rover's CO2 reduction programme
- Funding for Nissan's first pilot plant in Europe for the production of batteries for electric vehicles as well as manufacturing equipment for the production of Nissan's battery electric vehicle in Sunderland. (Commitment of approx £180 million)
- Financing of R&D in the field of precision instrumentation and controls for Spectris plc (£50 million)
- Financing of GKN's Research, Development and Innovation programme of components for a new generation of aircraft (£80 million).
Universities
Recent examples of UK lending include:
- Capital investment programme dedicated to the development and refurbishment of the University of Strathclyde’s and the University of Edinburgh's campuses (£90 million and £50 million respectively)
- Campus extension project at the University of York (£45 million).
Availability
EIB are willing to provide funding for most medium to large credit -worthy companies for investment in R&D and Innovation (but not e.g. expansion) as well as funding for capital expenditure programmes of research intensive universities. Loans typically total between £50 million and £200 million equivalent, to cover 50% of expenditure over a three to four year period.
The minimum lending is generally about £40 million equivalent.
The message from EIB is that if you are not sure whether EIB will be able to support you, you should not assume that they will not and you should contact EIB and ask to speak to one of the business relationship managers.
Lending criteria
As with any debt product the parties involved must be credit-worthy and have the ability to service the debt. Factors taken into account include the nature of the institution; its regulatory regime; its sources and reliability of cashflow; the assets it will start with. EIB may require a guarantor to cover the liabilities.
Further information
For further information contact Corporate and Banking Division, Lending Operations in Western Europe Robert Schofield (00352 43 79 - 87237) or via the Information Desk at info@eib.org (00352 43 79 – 22000). EIB is based in Luxembourg but business relationship managers make regular visits to London.
