New co-funding opportunities on the agenda as Islamic Development Bank President visits the EIB
1 February 2019
An Islamic Development Bank (IsDB) delegation, led by the Bank’s President, H.E. Dr. Bandar Hajjar, is visiting the European Investment Bank’s headquarters in Luxembourg to explore opportunities for co-financing new projects in Africa and Southern Mediterranean Countries.
“IsDB and EIB, together with other Multilateral Development Banks, are key players in catalysing private investment in support of public policy goals. We need to strengthen our common efforts to support economic resilience and deliver on our commitment to the Sustainable Development Goals,” commented EIB President Werner Hoyer after the meeting. He added: “There is an acute need to support sustainable investment in many regions where we are both active. We can deliver more impact by bundling our respective strengths and working closely together. Today President Hajjar and I had very fruitful discussions on how to scale-up our partnership and increase co-financing in a number of areas, starting with improving the lives of the most vulnerable, in sectors like infrastructure, innovation, support for small enterprises, and support to refugees.”
During the two-day visit, EIB and IsDB teams discussed ongoing projects and potential windows of cooperation to boost the impact of both institutions finance and technical assistance programs.
H.E. Dr. Bandar Hajjar, President of the Islamic Development Bank, addressed EIB delegates at a town hall meeting saying: “The close relationship between the IsDB and EIB will bring significant contributions to the development of the Islamic finance industry as well as the private sector in communities we have committed to serve.” He continued, “to achieve the SDGs, new sources of finance need to be tapped, such as the global capital markets. This requires new types of development projects that operate at the nexus of financial viability and development impact. It also requires new and innovative Islamic finance products that mitigates the perceived risks around investment. Solving this challenge is central to my vision for a new development model.”
EIB and IsDB have been working together to provide needed finance and advisory services for sustainable development. Since 2005, the EIB and the IsDB have co-financed 9 projects with a total investment of EUR 1 billion in Lebanon, Morocco, Tunisia and Sub-Sahara Africa.
The EIB and Unión de Créditos Inmobiliarios (UCI) are set to finance green investments in Iberia ranging from the refurbishment of existing buildings to the construction of Nearly Zero-Energy properties. These investments will be possible thanks to the provision of energy efficiency mortgages and consumer loans to the market by UCI.
The EIB has signed today its first loan to a company building and running photovoltaic plants in Poland. The EU bank will lend PLN 82m (around EUR 18m) to Energy Solar Projekty sp.z o.o. for the construction and operation of 66 small-scale, independent photovoltaic (PV) plants. With an average nominal capacity for each plant of less or equal than 1 MW, the total capacity will reach about 65,6 MW. This is the equivalent of 19,000 households, which could be supplied with the energy generated by the project.
The Board of Directors of the EIB has on 26 May agreed on the structure and business model of the new Pan-European Guarantee Fund to tackle the economic consequences of the Covid-19 pandemic. The Fund was endorsed by the European Council on 23 April as part of the overall EU Covid-19 response package.