Signature(s)
Summary sheet
The loan will support Nexans' investments in research, development, and innovation (RDI) related to high-voltage (HV), medium-voltage (MV), and low-voltage (LV) power cables and connections. This includes advancements in manufacturing processes and recycling technologies across various locations in Europe. Scheduled for implementation between 2024 and 2029, the project forms an integral part of the Promoter’s strategy to drive the energy transition and enhance environmental sustainability throughout its operations.
The aim is to support the Promoter’s growth strategy by enhancing its ability to contribute to the energy transition and promote environmental sustainability across all its activities. This will be achieved through advanced innovations in production processes and the development of high-performance, more recyclable, and eco-sustainable cables and wires. In addition, the project will expand the Promoter’s capacity to manufacture state-of-the-art power transmission cables, to meet a growing demand in the renewable energy sector.
The project is in line with the InvestEU objective of Research, Development and Innovation (RDI). The Project's activities support the Bank's IDHC (Innovation, Digital and Human Capital) public policy goal and therefore are eligible for the Bank's financing under the Research, Innovation and Digital (RID) sub-objective.
The Project is expected to support the Promoter's decarbonisation roadmap and growth strategy based on serving the energy transformation and promoting environmental sustainability in all its activities, with improvements in the production and development of more performant and recyclable cables and wires.
The financing of this Project supports undertakings that generate significant positive knowledge, technology, and environmental externalities, through the creation of innovative product and services and skills development and upgrading. It addresses the market failure of imperfect competition, as it contributes to expanding the competitive space for new product technologies.
The Project is largely located in Transition and EFTA regions. It facilitates the territorial and maritime cooperation between places in different countries, which helps make better use of development potential and address common challenges; and it supports the strengthening of the EU's economic, social and territorial cohesion by providing additional skilled employment opportunities. The Project is fully in line with the EIB's climate action and environmental sustainability goals and the REPowerEU framework, which the EIB has committed to support.
The Bank's contribution to the Project would consist in the diversification of the Borrower's funding sources, and the structuring advantages provided, which include flexible drawdown terms, longer availability period and financial benefits. These elements combined would help facilitate the Project's financing and its full implementation. On this basis, the EIB financing would support the Company's continuous RDI efforts, particularly in areas with uncertain innovation outcomes or high business cyclicality. Through this financing the Bank is aligned with its role of providing countercyclical support to a strong EU industrial leader.
The additionality elements of the EIB financing under InvestEU would be a larger financing facility to Nexans than that which the EIB could provide on own risk alone. Such support is essential for Nexans' sizeable RDI investment plan, which is expected to contribute to the advancement of the EU industry technology leadership, and to maintain Nexans and EU industrial competitiveness in a very competitive global market.
The project would not have been carried out to the same extent by the EIB without the InvestEU support.
The RDI activities are expected to be carried out in already existing and authorised R&D facilities and are not specifically covered by Annexes I or II of the environmental impact assessment (EIA) EU Directive 2011/92/EU (as amended by the 2014/52/EU Directive) and therefore not subject to an EIA. Investments in production capacity increase and related activities will take place at three major locations. Alignment with the requirements of relevant environmental EU legislation, mainly EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, Habitats and Birds Directives (92/43/EEC and 2009/147/EC the Industrial Emissions Directive 2010/75/EU as well as on Energy Performance of Buildings will be verified during appraisal.
The EIB has assessed the Promoter as a private company, not subject to EU rules on public procurement or concessions.