France: EIB grants second EUR 1bn loan for Grand Paris Express
- Release date: 16 October 2017
- Reference: 2017-275-EN
Today at the Paris InfraWeek event, the European Investment Bank (EIB) and Société du Grand Paris announced a second financing agreement worth EUR 1bn for the financing of Line 15 South of the Grand Paris Express. This brings the EIB’s total support for the project so far to EUR 2bn given that an initial EUR 1bn contract was signed in 2016. The new finance contract was signed by EIB Vice-President Ambroise Fayolle and Chairman of the Executive Board of Société du Grand Paris, Philippe Yvin, in the presence of Bruno Le Maire, Minister of the Economy and Finance.
This exceptional EIB support provides a solid financial base that will enable Société du Grand Paris to continue to develop the project whilst benefiting from particularly attractive financial terms thanks to the EIB's AAA credit rating. It will be dedicated to the construction of Line 15 South of the Grand Paris Express, which will connect the east (Pont de Sèvres) and west (Noisy Champs) of the Paris region in less than 40 minutes.
“With this new loan signature, the EIB is increasing its financial support for the development of the Grand Paris Express to the tune of EUR 1bn. Our aim is to develop a sustainable, high-quality transport service for the population of Île-de-France that will have a real impact on improving people's daily lives. This financing illustrates the priority we are giving to modern, efficient infrastructure at the heart of this city and region, contributing to their attractiveness and economic competitiveness whilst generating employment.”
Ambroise Fayolle, Vice-President of the European Investment Bank
“This long-term loan (up to 40 years) will have a very competitive interest rate and is particularly well suited to the requirements of Société du Grand Paris. The overall financing model of the Grand Paris Express is based on long-term loans, backed by tax revenue of around EUR 550m per year earmarked in support of a strategic investment for France.”
Philippe Yvin, Chairman of the Executive Board of Société du Grand Paris
As the leading European financier of infrastructure in France, the EIB has since 2016 provided EUR 7.8bn to support the development of modern, sustainable infrastructure in the fields of urban transport, superfast broadband, education (lower secondary schools, upper secondary schools and universities), and hospitals. More than 50% of projects financed by the EIB in France concern infrastructure financing, which is above the average level in Europe.