The European Investment Bank (EIB) is providing a EUR 50 million global loan to Rabo India Finance Private Limited to support investment by private-sector companies that create employment and contribute to economic development in India.
The line of credit will allow making available long-term funds and a broader range of financial instruments to support small and medium scale projects in several sectors, including agro-industry, biotechnologies, renewable energies, information technology and infrastructure. Most lending operations under the global loan are expected to take place within the next twelve months.
With this global loan to Rabo India Finance Private Limited, a subsidiary of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland), the EIB reopens its activity in India with a view to further support projects of mutual interest for the domestic and European Union economies. In particular, global loans may help to build-up partnerships with the EU and Indian banking communities to sustain the effectiveness of investment in the country.
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 2002, the EIB provided loans totalling some EUR 40 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 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.