Release date: 6 July 2022
Promoter – Financial Intermediary
BAYERISCHE LANDESBANK,DEUTSCHE KREDITBANK AGLocation
Description
The proposed multiple beneficiary intermediated loan (MBIL) to Deutsche Kreditbank AG ("DKB") will be dedicated to financing small and medium-sized Renewable Energy and Integrated Territorial Development projects.
Additionality and Impact
The proposed Multiple Beneficiary Intermediated Loan (MBIL) will be dedicated to financing small and medium-sized Renewable Energy and Integrated Territorial Development sub-projects in Germany and France, and potentially other EU countries. 50% of the project concerns the financing of a series of renewable energy generation plants (onshore wind and solar PV), located in Germany and France. The remainder concerns financing of small infrastructure and sustainable municipal investments undertaken by public sector companies in Germany. By using an intermediated approach, the Bank will be able to support smaller projects, that would otherwise not be possible to be reached directly. The project addresses a number of market failures, from contributing to the reduction in carbon and air pollution, to improving energy markets and general market efficiency and integration through participation in the wholesale markets. The upgrading, replacement and reorganisation of urban infrastructure and public facilities provides positive externalities including economic growth and knowledge externalities. EIB is providing adequate financing sources in terms of pricing and longer maturities with customized terms for fixed interest duration, availability and amortization periods. EIB's involvement also provides a signalling effect and consequently crowds-in public and private co-investors for the individual projects.
Objectives
Final beneficiaries are expected to encompass public entities (50% of the loan amount) and small and medium-sized enterprises (SMEs) and mid-caps. Other private entities are not excluded. Within the volume allocated to SMEs, mid-caps and other private sector entities, the minimum proportion allocated to SMEs will be in line with applicable MBIL rules, i.e. 70%.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 250 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 24/06/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).