Today, the European Investment Bank (EIB), the Bank Nederlandse Gemeenten (BNG), and the Erasmus Medical Centre (EMC) will be completing a financing arrangement covering EUR 860 million which is due to be signed by Hans Büller, Chairman of the Board of the EMC, Pim Vermeulen, Chairman of the Board of BNG and Carlos Da Silva Costa, Vice President of the EIB at the Erasmus Medical Centre in Rotterdam. This is the largest building finance and healthcare finance project ever in the Netherlands and has been designed for the rebuilding, renovation and maintenance of the Erasmus Medical Centre in Rotterdam. During the entire implementation process, normal care will continue to be provided.
The total investment will be between EUR 945 million and EUR 965 million and will take place between now and 2016. For the greater part, the finance will be provided in the form of borrowed capital. This is covered by an Agreement with the BNG (arranging bank) for 860 million EUR. The EMC can draw down this money in the form of an interim building advance. Thereafter the EMC will be allowed to convert this facility by 2016 into long-term loans, with a maximum term of 50 years. This conversion into long-term loans is offered jointly (50/50) with the EIB, which is the European Union financing arm.
The Agreement between these three parties is a good example where three major undertakings can be made to co-operate over a number of years, but where each party remains able to continue to concentrate on its core business. The Erasmus Medical Centre is an innovating centre for high-quality development of knowledge, training and care in the field of nursing and healthcare. The BNG is the bank of the government and for the needs of the public. The BNG will provide financial services as cheaply as possible. In this way it is able to offer added value to its shareholders in the Dutch public sector. For the EIB, the financing of the upgrading of the healthcare infrastructure in Europe at the best financial conditions has been a priority and so is also the strong support to give to education and to RD&I and ICT sectors; all included in the Erasmus MC project. These are key factors for the further development of the European Union member countries to attain the objectives of the EU Lisbon Agenda to build a competitive European Knowledge-based, innovation-driven economy.
European Investment Bank
Financing the upgrading of health infrastructure in Europe is one of the EIB's priorities since the Amsterdam European Council in 1997. Such investments foster the EU's economic and social cohesion by helping to provide access to the best health and hospital services and stimulate the development of new technologies. Since then, the EIB has made available close to 10 billion euros for the modernisation or construction of hospital and healthcare facilities in the European Union.
Moreover, investment in human capital, i.e. health and educational training, as well as strong support to R&D are considered to be major drivers of growth. This view was reinforced by the adoption of the Lisbon Strategy in 2000, which aims to create a competitive European economy based on knowledge and innovation by the end of the decade. The EIB, whose financing contribute to furthering the policies of the EU, has lent some EUR 35 billion to support investment projects contributing to the so-called Lisbon Agenda'.
The EIB is the European Union's financing arm. It provides mainly long-term loans to both private and public sector promoters whose ventures contribute to furthering the policies of the EU, in five priority areas: economic and social cohesion; research, development and innovation; trans-European transport, telecommunications and energy networks; environmental protection; and support for SMEs. It also participates outside the Union in the implementation of the Community's development aid and cooperation policies.
Owned by the 25 EU Member States, the EIB raises its resources on the capital markets and is not dependent on the EU budget. In 2005, it borrowed EUR 50 billion and lent a total of EUR 47 billion, of which EUR 42 billion within the European Union.
The BNG is the bank of, and for government and the institutions of the community. With its specialised range of services, the BNG makes a contribution to the provision of community services for the citizen at the lowest possible cost. The BNG offers financial services to measure, such as the granting of credit, payment transactions, advice and electronic banking.
The BNG is a structural company. Half its shares are in the hands of the State, the other shares are held by local authorities and provinces. On the basis of its turnover, the BNG is the largest government bank in the Netherlands.
During 1994, the BNG was awarded triple A' status. Moody's, Standard & Poor's and Fitch have all awarded BNG their highest rating. This rating indicates the creditworthiness of the BNG. BNG can offer its clients finance on optimum terms, as it is able to attract funds on favourable terms from the international money and capital markets.
The BNG is an important player in the care market. The total credit granted to the Dutch care sector (with the exception of home care and first line care) is approx. EUR 18 billion, of which some 6 billion is provided by BNG on its own account. For additional information on the BNG, please consult www.bng.nl.