>@EIB/PETTINA Jean-Marc

Paris, 8 July 2014 – A year after signing a bilateral cooperation agreement, on 13 June 2013, and fully in line with the conclusions of the European Council meeting of 26 and 27 June of this year, Pierre-René Lemas, CEO of the Caisse des Dépôts Group, and Philippe de Fontaine Vive Curtaz, Vice-President of the European Investment Bank (EIB), are deepening the cooperation between the two institutions and coordinating their long-term financing of strategic economic sectors.

Michel Sapin, Minister of Finance of Public Accounts, and Harlem Désir, Secretary of State for European Affairs, took note of the highly positive results of the first few months of Caisse des Dépôts and the EIB’s teams working together. The primary aim of this partnership is to guarantee the access of French local authorities, hospitals and universities to long-term credit for financing their economic and social development projects.

A number of concrete projects have already been appraised and financed in the framework of this cooperation, such as a very high speed public broadband network in Haute Savoie (SYANE), a waste processing project in the Basque Country (Bil Ta Garbi), a hospital project in Toulouse, an urban transport project in Marseille (Marseille Provence Métropole), the L2 bypass in Marseille, and a fund dedicated to the redevelopment of former industrial sites (the “Brownfield” fund). This cooperation also gave rise to two joint financing programmes in 2013: the Hospitals of the Future Plan (€3 billion of planned loans over 3 years) and Operation Campus (€2.6 billion of expected loans over 3 years).

This year has above all seen the development of new facilities that will be brought into play in the next few weeks. Three new intermediated programmes have been put in place, for which the EIB and Caisse des Dépôts could share part of the technical appraisal: loans for schools (€2 billion, a first €400 million EIB instalment of which was signed on 23 June, meaning €800 million worth of long-term loans provided with Caisse des Dépôts), high performance buses (€900 million) and very high speed broadband (€1.5 billion, with a first €300 million EIB instalment in the process of being signed). At the same time, the procedures for appraising proposed loans to local authorities and hospitals are being harmonised, with Caisse des Dépôts making one of their experts available to the EIB.

Caisse des Dépôts and the EIB have also reaffirmed their commitment to coordinating their financing facilities for local authorities (around €4 billion a year from the EIB over the period 2013-2015, and €4 billion a year worth of loans from savings tapped by Caisse des Dépôts over the period 2013-2017), while the EIB is continuing to involve the networks of large French banking groups.

Today the two institutions announced co-financing operations in the areas of universities (Operation Campus), hospitals (Hospitals of the Future Plan), transport, digital infrastructure and the refurbishment and improvement of the energy efficiency of public buildings. In addition, innovative financing operations are being jointly mounted in the very high speed broadband sector – the subject of a memorandum of understanding signed by the two institutions today in the presence of the ministers. This provides for an initial package of €600 million worth of long-term EIB loans to be made available to the public sector through partner banks. Added to this will be direct loans to local authorities worth at least €200 million, and a €200 million project finance operation with the private sector will be signed in the next few weeks. This innovative operation will be the first involving a project bond in support of very high speed broadband in France and Europe. Thus, starting in July, €1 billion will be made available for very high speed broadband projects in France over the next twelve months.

Michel Sapin, Minister of Finance of Public Accounts, said: “The cooperation between Caisse des Dépôts and the EIB enables projects to be financed throughout France in support of regional development. It also provides a practical illustration of what the national and European institutions can do to foster growth and employment when they work together. With this in view, we will continue trying to get Europe back on track with a European investment initiative that the EIB is fully supporting.”

Harlem Désir, Secretary of State for European Affairs, continued: “This partnership is a fine example of the French and European financing institutions joining forces to provide long-term financing for the economy and investment. It represents very concrete application of the Growth and Jobs Pact agreed in June 2012 at France’s initiative. We shall, of course, be maintaining this effort to strengthen, optimise and simplify Europe’s action in this area, in line with the EU priorities for the next five years set by the European Council at its meeting on 26 and 27 June of this year.”

Pierre-René Lemas, CEO of the Caisse des Dépôts Group, stressed: “With this partnership, which is unique in Europe, Caisse des Dépôts and the EIB are at the forefront of implementing the priorities recently expressed by the French President and the European Council, calling for the national and European financing institutions to work together to ensure the long-term financing of the economy. Such investment is an essential prerequisite for the resumption of growth in our country. The number of projects testifies to the vitality of local players and their faith in the future; our cooperative approach will enable us to respond to this quickly and efficiently”.

EIB Vice-President Philippe de Fontaine Vive Curtaz said: “Effectiveness, closeness and competitiveness: these are the EIB’s three goals in helping to revive growth through investment in France. And it is by combining skills and resources that we will together contribute to meeting the economic and social challenges facing Europe. Our highly fruitful partnership with Caisse des Dépôts constitutes a strike force with a multiplier effect in the heart of our regions. In difficult circumstances, it represents committed public sector support for key areas such as the energy transition. And it is also a strike force at the national and European levels, with the forthcoming launch of our first project bond in support of very high speed broadband in France. This is action that is above all concrete and resolutely geared to the future of young people.”