Signature(s)
Summary sheet
- Credit lines - Credit lines
The project will finance low-emission electric vehicles (EV) for operational leasing. The EV market in Romania is at an early stage of development with high upfront costs. By financing leasing companies, the EIB plays a significant role in increasing the EV deployment in the EU market, hence in supporting the industry to produce at a larger scale to reduce EV costs.
The aim is to enhance access to finance to Small and Medium Enterprises (SMEs), as well as to reduce CO2 emissions. This project contributes to deploy alternative fuels, thereby reducing not only the negative environmental externalities of road transport, but also the fuel consumption costs for transport operators, mostly SMEs. The project, which has a 100% share of Climate Action, is eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest. It also contributes to the EIB's SMEs Lending priority, Transport Lending Policy and Climate Bank Roadmap, as well as sustainable and decarbonised road transport, thereby also supporting EU policy objectives.
The project concerns the roll-out of a fleet of low emission vehicles with the goal of reducing road transport CO2 emissions. The project contributes to the EIB's lending priority objectives on SMEs, as well as sustainable and decarbonised road transport thereby supporting EU policy objectives. The project is consistent with the EU Green Deal and the Sustainable and Smart Mobility Strategy as well as the Bank's Climate Bank Roadmap and Transport Lending Policy. The project has a 100% share of Climate Action and is eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest. The Electric Vehicle (EV) market is at an early stage of development in Romania with significant operational performance uncertainty and high upfront costs. Despite an increase in EV (and batteries) production resulting in lower production costs, EVs remain more expensive than conventional Internal Combustion Engine (ICE) vehicles. By supporting leasing companies to increase their EV offer (and indirectly bear part of the EV residual value risk), EIB financing plays a very significant role in accelerating EV deployment and EV EU market share, hence supporting the industry to produce at larger scale and reduce EV costs. This project contributes to the deployment of alternative fuels, thereby contributing to reducing not only the negative environmental externalities of road transport, in the form of the reduction of CO2, air pollutants (Nitrogen Oxides, Particulate Matter), but also the fuel consumption costs for transport operators ? mostly Small and Medium Enterprises. EIB would provide an adequate financing to the borrower, allowing it to further diversify its financing sources. The EIB's contribution to this investment is expected to materially contribute to the Promoter's effort to meet its ESG targets and crowd-in Green Finance investors. EIB's financing would also provide a signaling effect on the soundness and quality of the project.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.