France : First direct EIB loan to the Eure Department
9 December 2016
The Eure Department and the European Investment Bank today signed a EUR 65m financing agreement. This partnership will enable part of the multiannual reconstruction programme (EUR 172.5m) for collèges (lower secondary schools) in Eure to be financed securely and at a lower cost over the next few years.
The agreement between the Eure Department and the European Investment Bank (EIB) was signed this morning at the Department's headquarters building in Évreux. Department President Sébastien Lecornu asked his Vice-President for Finance, Pascal Lehongre, to sign this highly important agreement with EIB Vice-President Ambroise Fayolle.
By going through the EIB, the Eure Department will receive a particularly favourable interest rate well below those available on the market. The Department should save around EUR 1m in financial costs as a result of having taken out the EUR 65m, 25-year loan with the EU bank directly.
The search for the best possible lending terms is key as in June the Departmental Assembly approved a Multiannual Investment Programme (MIP) including the demolition of five collèges but also the rebuilding and refurbishment of 14.* The Department will need to mobilise EUR 172.5m in order to complete this work during the 2016-2022 period.
Clear medium-term financial visibility
The EUR 65m credit line will secure a portion of the Department's borrowing needs for the next five years. The flexible agreement negotiated with the EIB makes it possible for the Department to draw upon the loan envelope in line with its needs. This gives the Department's finance department better visibility.
Beyond the financial aspects, this long-term loan will also have a very real impact on the Eure region and its people. With the security of being able to finance its MIP for collèges, the Department will inject at least EUR 172.5m into the local and regional economy by 2021, generating business for economic players and therefore jobs.
*Nine schools will be rebuilt: Jean-Rostand in Évreux; Le Hameau in Bernay; Victor-Hugo in Rugles; Maurice-de-Broglie in Broglie; Hyacinthe-Langlois in Pont-de-l'Arche; Le Hamelet in Louviers; Louise-Michèle in Manneville-sur-Risle; César-Lemaître in Vernon; and André-Maurois in La Saussaye.
Five collèges will be restructured or expanded: Les 7 Epis in Saint-André-de-l’Eure; Marcel-Pagnol in Gravigny; Janine-Vancayzeelle in Thiberville; Le Roumois in Routot; and Simone-Signoret in Aubevoye.
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