The European Investment Bank is providing a USD 25 million global loan (some EUR 27 million) to Rabobank International Indonesia (RI), owned 96% by the Rabobank Group, the second largest banking group in the Netherlands, to support small and medium-sized investment in Indonesia.

The global loan will contribute to the development and internationalisation of the private sector in Indonesia. RI will develop term-finance for small and medium-scale investment in industry, tourism, private infrastructure, energy, telecommunications and related services, including leasing. The loan is targeted to support EU companies, both medium and large-sized, and investments containing EU interest. RI's on lending will be for a minimum of 4 years. All beneficiaries are to satisfy EIB's environmental requirements.

The 10-years global loan (3-year grace period) will also help the re-launching of foreign currency term-finance in Indonesia. Term funding is not readily available in the Indonesian market. The global loan will widen the range of financial instruments, accelerate project implementation and support the long-term development of the Indonesian economy. RI will mainly support industries that generate value added to the local resources.

The loan is provided in the context of the EU co-operation policy with third countries. In Asia and Latin America (ALA), the EIB may lend up to EUR 2.48 billion during 2000-2006 to support capital investment projects implemented by subsidiaries of EU companies or joint-ventures between EU and ALA firms, or investment that results in environmental improvements or fosters regional integration. The EIB was set up in 1958 to finance investment furthering EU integration. It lends for regional development, infrastructure, energy, industry and environment. Outside the EU, the Bank contributes to the European development co-operation policy in some 130 countries in Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific, Asia and Latin America.

In 2000, the EIB provided loans totalling some EUR 36 billion. The Bank borrows on the capital markets the funds for its lending. Its bonds have regularly been rated "AAA" by the leading rating agencies. The EIB works on a non-profit basis and can pass on to project promoters the excellent conditions it obtains on the markets. The EIB may finance up to 50 percent of project cost. On average it provides one third of the funding and co-finances investments with other institutions.