The European Investment Bank, the European Union's long-term financing institution, is lending GB£ 200 million(1) for investment by One-2-One to extend its mobile telephone services in the UK. The European Investment Fund is providing a £100 million guarantee facility for the EIB loan.
Commenting on the loan, EIB President, Sir Brian Unwin said: "This loan will contribute to underpinning European economic development by further improving communications services for the UK's business community. The Bank's intervention is in direct support of the European Union's policy of encouraging the development of mobile telephony as an essential contribution to the creation of a European "information society" that will strengthen the Union's long-term economic competitiveness."
One-2-One, based in London (UK), is a partnership between Cable and Wireless plc and MediaOne International, the international arm of MediaOne Group of Denver (USA).
The loan will support One-2-One's planned investment of GB£ 900m in network expansion and enhancement over the next three years.
The European Investment Bank, the European Union's long-term lending institution, finances capital investment furthering EU integration, in particular: regional development; trans-European networks in transport, telecoms and energy; industrial competitiveness and integration; SMEs; environmental protection; and energy security. It also operates outside the EU within the framework of the EU's co-operation external policy. Owned by the Member States, the EIB raises its funds on capital markets (AAA issuer). Sir Brian Unwin is the first British President of the institution and assumed office in 1993. In 1997, the EIB lent over ECU 26 billion, of which some £3 billion in the UK, and borrowed ECU 23 billion on capital markets.The European Investment Fund (EIF) is a public-private partnership established in 1994 by the EIB, the European Community and private and public financial institutions from the 15 Member States. The EIF provides credit guarantees and credit enhancement for debt finance in two fields: Trans-European Networks, and small and medium sized enterprises (SMEs). The EIF's mission is to act as a catalyst in facilitating the partnership of private capital in TENs projects and in facilitating access for SMEs to loan finance at reasonable cost. It also contributes to the provision of equity to the SME sector through European venture capital funds.
(1) The conversion rates used by the EIB for statistical purposes during the current quarter are those obtaining on 30 June 1998, when ECU 1 = 0.657 GBP.