- This is the third tranche of a EUR 725m loan on favourable conditions with a 20-year maturity to boost economic growth in Andalucía
- Taken together, the investments under this programme will help create over 29 000 jobs during the implementation phase
The European Investment Bank (EIB) and the Junta de Andalucía have finalised a loan under which the EU bank will provide EUR 230m in financing on very competitive conditions to boost investment in several sectors of the Andalusian economy, with the aim of promoting economic growth and job creation in the autonomous community. The agreement was signed today by EIB Vice-President Emma Navarro and Junta de Andalucía Minister of Finance, Industry and Energy Juan Bravo.
This is the third tranche of a EUR 725m loan that the EIB is granting to co-finance Andalusia's regional operational programme for 2014-2020 together with the European Regional Development Fund (ERDF) and the European Social Fund. The aim of this financing is to boost reindustrialisation in Andalusia, the internationalisation of its economy and social integration, fostering investment in education and training to facilitate labour integration. Taken together, it is calculated that all the investments put in place thanks to the allocation of EU funds and the provision of EIB finance will lead to the creation of over 29 000 new jobs during the implementation phase of the different projects.
Some of these funds will go towards supporting Andalusian SMEs to strengthen the regional productive framework and promoting sustainable economic growth by driving investment in renewable energies and energy efficiency. Priority will also be lent to projects designed to foster innovation and digitisation in Andalusia and to improve the transport network. At the same time, the EIB financing will help to renew public infrastructure and regenerate rural and urban areas via housing refurbishment.
At the signing ceremony today in Seville, EIB Vice-President Emma Navarro said: “We are delighted to be signing this agreement, which will make it possible to boost projects in strategic sectors of the Andalusian economy, strengthening its productive framework and fostering competitiveness and job creation. We are happy to work together with the Junta to support investments that will have a positive impact on the lives of the people of Andalusia, and to pursue the consolidation of the EU bank's close partnership with the region.”
For his part, Minister of Finance, Industry and Energy Juan Bravo highlighted the trust demonstrated by providing Andalusia with financing on such favourable terms, enabling the Junta to cover almost all expected financing needs so far this year via market operations for the 2019 financial year. He said that this loan came in addition to the success of the EUR 700m public bond issue that the Andalusian Government had performed in March, which saw demand 2.7 times higher than supply and that was launched at a very competitive rate, as well as the placement of EUR 343m with private investors via respective 20, 22 and 30-year issues, also finalised at a cost well below the limit set by financial prudence regulations.