The European Investment Bank (EIB) is providing EUR 170 million to VW Argentina to part-finance investments at its existing car manufacturing facility near Buenos Aires. The financing contract was signed in Luxembourg today.
At the signing ceremony, the EIB Director for operations in Asia and Latin America (ALA), Francisco de Paula Coelho, highlighted “the various aspects that make the project particularly relevant to achieving the objectives of the ALA mandate. Firstly, it supports the presence of the European Union in the Latin American market, by contributing to the investments in Argentina of a leading European car manufacturer and helping the transfers of technology and know-how from Europe, which will result in cleaner cars and have positive environmental effects. In addition, the project involves the direct creation of 1 800 jobs, contributing in this way to the economic development of Argentina in a context of global economic difficulties.”
The project concerns VW Argentina’s investments at its existing car manufacturing facility in Pacheco, near Buenos Aires, aimed at the production of a light commercial vehicle designed for the mixed transport of goods and passengers, specially adapted for use on country roads in Latin America. The new vehicle will be equipped with VW’s most advanced safety standards and latest advanced powertrain technology, which will result in lower fuel consumption and lower carbon dioxide emissions.
The EIB is extending this loan in the framework of the current lending mandate for Asia and Latin America (ALA IV), covering the period 2007-2013. Under this mandate the EIB is authorised to lend up to EUR 3.8 billion for financing operations that contribute to climate change mitigation or support the EU’s presence in those regions through foreign direct investment or the transfer of technology and know-how.
Background information:
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1958, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of the EU cooperation policy with third countries.
Since 1993 the Bank has carried out four successive lending mandates for Asia and Latin America. The EUR 3.8 billion regional ceiling of the current mandate (ALA IV) is broken down into indicative sub-ceilings of EUR 2.8 billion for Latin America and EUR 1 billion for Asia.