The European Investment Bank is providing a EUR 50 million global loan to Rabobank International Indonesia (RII), to support small and medium-sized investment in Indonesia.
RII will lend for investment to subsidiaries or joint-ventures involving European companies, or to other companies investing in line with European interests, such as transfer of technology and know-how. The sectors mainly targeted are: industry including agro-industry; telecommunications, media and IT; infrastructure, energy, and mining. For this purpose loans may be extended up to ten years, with a possible grace period of up to three years. Loans will be limited to a maximum 50% of the total cost of the investment.
In addition, loans of up to 30 years (with a maximum of seven years grace period) may also go to Indonesian private or public sector companies investing to reconstruct or rehabilitate businesses affected by the tsunami disaster. As established by EIB funding criteria for reconstruction and restoration projects following natural disasters, projects under this category may receive finance up to 100% of the total cost of the investment.
RII is 99% owned by the Rabobank Group, the second largest banking group in the Netherlands. It has already benefited from, and has fully utilised, an EIB global loan to support investment by small and medium-sized businesses.
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.