The European Investment Bank (EIB) is providing Dexia Bank with a EUR 150m loan to finance investment in renewable energy and energy efficiency in Belgium and Luxembourg.

The purpose of the agreement signed on 18 May in Brussels by Philippe Maystadt, EIB President, and Jean-Luc Dehaene, Chairman of Dexia, is to support the development of renewable energy and energy efficiency. This is the first EIB loan of its kind in Belgium.

The resulting programme - ‘EIB Dexia Renewable Energy' - is aimed at businesses, public authorities and non-commercial sector players alike. It will serve to finance small and medium-scale projects in the solar energy, wind energy, biomass (excluding biofuels) and cogeneration sectors as well as measures aimed at improving energy efficiency, of public buildings in particular.

The projects will have to be submitted to Dexia Bank Belgium and those selected will be financed up to a maximum of 50% via the EUR 150m credit line provided by the EIB, with the balance being covered by Dexia Bank. The final beneficiaries will be duly informed of the EIB's involvement and the form it will take and of the improved financial terms that it is offering.

At the signing ceremony Mr Dehaene stated: "This EIB framework loan will enable Dexia Bank to actively support the efforts being made by public authorities, businesses and the non-commercial sector alike, by granting them loans on competitive terms to finance their investments in the fields of clean energy and energy efficiency. Thanks to this partnership, no less than EUR 300m will be advanced via Dexia Bank and Dexia Lease for such investments in Belgium and Luxembourg over the coming months and years. This underscores the central role of renewable energy in Dexia's strategy, a key sector supported via conventional lending and via leasing, project finance and public-private partnerships.

Mr Maystadt, who has on numerous occasions emphasised his institution's desire to support the development of renewable energy and energy efficiency projects in Belgium, also welcomed this agreement: "Having previously entered into this type of operation in ten other EU countries, the EIB can now make its funding capacity and experience available to project and investment promoters in Belgium and Luxembourg". The EIB President was also pleased "to be able to count on the EIB's long-standing partnership with the Dexia Group and Dexia Bank's political will and expertise, particularly in the fields of solar and wind energy. That cooperation is reflected in this framework loan and will facilitate investment by enterprises and public institutions in these fields", and added that: "the EIB is providing substantial backing for economic stimulus plans throughout the EU and we are convinced that recovery and growth in the Member States will be achieved through the development of R&D, support for investment and the implementation of innovative, sustainable projects in a number of strategic sectors, including energy and combating climate change."

Note to editors:

The EIB

The European Investment Bank is the EU's long-term financing institution, founded by the Treaty of Rome in 1958. Its mission is to support through its activities the development of EU policies. To that end, it borrows its funds on the capital markets in order to finance on the keenest terms projects that are in line with EU strategies. In 2008, the EIB made available EUR 51.5bn in support of projects located in the European Union, of which nearly EUR 1.5bn for projects in Belgium.

EIB financing contributes primarily towards economic and social cohesion, environmental protection, research and innovation, support for SMEs, the development of trans-European transport and energy networks and the promotion of sustainable, competitive and safe energy. This last objective is a priority to which the EIB devoted EUR 10.2bn in 2008, of which EUR 2.2bn for renewable energy projects, representing a commitment that has tripled over the past two years. Already in 2009, over EUR 5bn has been approved by the EIB's Board of Directors for loans in support of energy.

DEXIA BANK

Dexia is a European bank, which at 31 March 2009 had around 36 760 employees and a core capital of EUR 17.7bn. The Group's activity is focused on public sector banking, offering comprehensive banking services to public sector customers, and retail and commercial banking in Europe (chiefly in Belgium, Luxembourg and Turkey). Its main activities include retail, commercial and private banking, insurance, asset management and investor services.