CZK 2 billion loan (equivalent to €79.3 million) will improve Pardubice’s infrastructure in transport, healthcare, education and culture and will improve energy efficiency in public buildings.
The fourth EIB operation with this region included in cohesion programmes will bring EIB support for Pardubice to CZK 5.5 billion (approximately €202 million).
The European Investment Bank (EIB) is lending CZK 2 billion (some €79.3 million) to the Pardubice Region, located in Eastern Bohemia, to finance the implementation of its investment programme. Together with EU grants, the EIB loan will support investments amounting to €223 million, particularly in the transport (45% of the total), healthcare (37%), and culture (9%) sectors, and in the areas of education and energy efficiency (9%).
The investments will help to upgrade the quality and safety of regional roads, which have seen persistent under-investment over a number of years. They will also contribute to comprehensively renovating key public buildings (for health and social care, education, culture and administration), which suffer from either physical obsolescence, low energy efficiency standards or a lack of adequate equipment.
“The EU bank’s support for intra-regional connectivity, road safety and healthcare in the region will contribute substantially to better living standards and competitiveness”, said EIB Vice-President Lilyana Pavlova. “In light of the COVID-19 crisis, we are pleased to be able to dedicate more than a third of the financing under this new operation with the Pardubice Region to a healthcare infrastructure upgrade. We also welcome plans to modernise public facilities for culture and education, which are in line with EU’s regional development and cohesion policy priorities.”
“We have been de facto advocating the adoption of a CZK 2 billion framework agreement with the EIB since 2016, regardless of the current coronavirus crisis. If we want to maintain investment activity in the future and thus help the Czech economy, then it is necessary to adopt this credit framework. The projects that will benefit from this loan include the construction of a central emergency reception pavillion in Pardubice hospital, the construction of a new building for the aftercare hospital in Moravská Třebová, the modernisation of Winternitz's automatic mills and projects for the reconstruction of lower class roads. In this case, it is not possible to use subsidies from the Integrated Regional Operational Programme or the State Fund for Transport Infrastructure,” stated RegionalPresident Martin Netolický.
The EIB and Banque des Territoires will each invest €100 million in an investment platform to finance the energy transition of bus fleets across France. Managed by Banque des Territoires, this platform will offer innovative financing to local and urban mobility authorities looking to green their bus fleets to reduce their climate impact. The Clean Buses Platform is part of Caisse des Dépôts’ recovery plan and environmental transition efforts. The EIB’s investment is guaranteed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe.
On 11 January, the EIB issued a new EUR 1.5bn Sustainability Awareness Bond (SAB) due 15 May 2041. On the back of demand in excess of EUR 22.5bn (excl. JLM), the transaction was upsized from initial target size (EUR 1bn) and priced at mid-swaps less 7bp, 2bp tighter than initial guidance. The issue had a re-offer yield of -0.003%, offering a spread of 30.6bp over DBR 4.75% 07/04/40 and 6.3bp below FRTR 4.5% 25/04/41.