France: EIB and Société du Grand Paris sign a new EUR 500 million loan agreement
1 October 2018
EIB Vice-President Ambroise Fayolle and Chairman of the Executive Board of Société du Grand Paris Thierry Dallard signed today a EUR 500 million finance contract for Line 15 South of the Grand Paris Express. This third financing tranche brings the EIB’s total commitment to the project to EUR 2.5 billion.
It will contribute to meeting Société du Grand Paris’s financing needs up to 2020, amounting to over EUR 8 billion. In 2018, Société du Grand Paris planned to borrow EUR 2.4 billion, followed by over EUR 3 billion in 2019. The EIB support provides a solid financial base that will enable Société du Grand Paris to continue to develop the project whilst benefiting from particularly attractive financial terms thanks to the EIB's AAA credit rating.
The signing ceremony took place on the site of the Arcueil-Cachan station, located on the future Line 15 South of the new metro system, in the presence of Mayor of Cachan Hélène de Comarmond and Member of the National Assembly Albane Gaillot. The 33 km line will connect Pont-de-Sèvres to Noisy-Champs in less than 40 minutes.
“During the current work acceleration phase for Line 15 South, the signing of this agreement re-affirms the long-term support that the EIB is giving us. This operation is fully consistent with the financial strategy of Société du Grand Paris, which, with its recurrent financing requirements of around EUR 3 billion a year, is preparing to raise funds on the international financial markets via 100% green bond issues.” Chairman of the Executive Board of Société du Grand Paris Thierry Dallard
“This is a major financing operation for a large-scale urban project which will link the city’s main business hubs and help to make some parts of the region less isolated. By financing Line 15 South, the EIB has opted to support a high-performance, sustainable and more accessible transport service. This new line will improve the mobility of Île-de-France residents while promoting the attractiveness and economic competitiveness of the region.” EIB Vice-President Ambroise Fayolle
Today at the Paris InfraWeek event, the EIB and Société du Grand Paris announced a second financing agreement worth EUR 1bn for the financing of Line 15 South of the Grand Paris Express. This brings the EIB’s total support for the project so far to EUR 2bn given that an initial EUR 1bn contract was signed in 2016. The new finance contract was signed by EIB Vice-President Ambroise Fayolle and Chairman of the Executive Board of Société du Grand Paris, Philippe Yvin, in the presence of Bruno Le Maire, Minister of the Economy and Finance.
Prime Minister Manuel Valls today visited the headquarters of the EIB Group in Luxembourg to meet EIB President Werner Hoyer and Vice-President Ambroise Fayolle and announce a EUR 2.1 billion package of new loans in support of concrete projects accelerating growth and employment which will unlock EUR 8.7 billion worth of additional investment in France. Among the projects signed, five were financed under the Investment Plan for Europe, aka the "Juncker Plan", from which France is one of the first countries to benefit.
This partnership will enable independent, development-minded French SMEs with fewer than 250 employees to contract loans with terms of at least two years throughout the Société Générale network on the EIB’s preferential terms.
The EIB and Société Générale thus confirm their long-standing cooperation to provide financial backing for corporate projects. An initial EUR 300 million loan advanced in January 2009 has already helped to finance nearly 2 800 projects promoted by 1 950 French SMEs.