Netherlands: EIB and BNG Bank help public sector with low-cost investments

The European Investment Bank (EIB) and BNG Bank have signed a loan agreement of EUR 250 million in The Hague today.

The loan comes after the earlier signature of a cooperation agreement in which both financial institutions vowed to share knowledge and experiences with the goal of stimulating public investment in the Netherlands. The EIB will provide EUR 250 million to BNG, who will on-lend this financing against low interest rates to local authorities, housing corporations and healthcare institutions. The scope is for projects with a maximum value of EUR 25 million.

Since the EIB does not finance more than 50% of the total value of any project, together with BNG Bank it will be possible to finance a total of at least EUR 500 million in projects. De interest rate for these clients will be lower than that of the regular loans.

“BNG Bank is a committed partner for a more sustainable Netherlands and its goal is to support government policy at the lowest possible rates. Through this lending facility BNG Bank can give smaller clients, who would otherwise not meet the requisites for EIB-lending due to their smaller size, the opportunity to benefit from EIB financing. Therefore, this agreement is perfectly in line with the bank’s strategy”, said Oliver Labe, member of BNG Bank’s executive board.

“As a bank, the EIB has a comparable strategy towards smaller clients and the collaboration with BNG Bank comes at a very good time”, added EIB Vice-President Pim van Ballekom. “There is a need for social housing in the Netherlands, where BNG Bank plays an important role in financing. This fits very well with European objectives. In this project several of the bank’s priorities come together and we also give a signal, as a European financial institution, that we are available when and where we are needed.”