LOXAM ELECTRIC CAPEX PROGRAM

The project consists of the company's multi-annual green investment plan in new state-of-the-art electric equipment and a small share of other 'low-emission' biofuel and hydrogen-powered equipment for the substitution of fossil fuel-powered, polluting and CO2-emitting rental equipment and rental fleet renewal in France. It includes the implementation of charging stations and hydrogen-refuelling stations, as well as the associated digitalisation for tracking, remote diagnostics and preventive maintenance.

The decarbonisation of the rental fleet by substituting fossil-fuel powered rental equipment with electric or hydrogen-powered equipment in support of resource efficiency and circular economy.

The company stands out in the sector as the most ambitious driver of the concept of natural resource use, management and protection / circular economy. The project constitutes a significant investment in fleet electrification and substitution of fossil-fuelled equipment with zero/low emission equipment. The project will help to reduce the energy consumption, avoidexhaust emissions, reduce noise emissions and reduce pollution by oils and lubricants during operation and maintenance. The associated digitalization will enable the tracking, remote diagnostics and preventive maintenance of the equipment and thereby further reduce the carbon footprint. These factors combined constitute a significant 'development and deployment of innovative solutions and business processes for circular economy' in the construction equipment rental business, and set an example to the construction sector at large. The project addresses the market failures of insufficient investment in circular economy in the EU and insufficient attention in the construction equipment rental sector for reducing energy consumption and extending the life of the assets.

Most of the project will be implemented in sites located in cohesion regions. The project thereby supports the strengthening of the EU's economic, social and territorial cohesion. These local investments will contribute to the creation of a more sustainable, healthy and affordable living environment, and in maintaining and expanding the promoter's employment in the regions concerned.

The EIB loan addresses the borrower's needs to (i) achieve greater financial flexibility by shifting its financing profile towards longer term financing and (ii) diversify its lender pool. The EIB loan will provide a financial safeguard to the promoter and supports its equipment electrification plan and through the uncertainty triggered by the COVID-19 crisis. The proposed loan structure provides the borrower with the necessary flexibility to undertake the investments. Origination and appraisal of the operation has benefited from EIB technical expertise. Targeted regular monitoring will be applied.

The project will be implemented in existing facilities, already authorised, that will not materially change in scope. These do not appear to fall under any Annexes of the Environmental Impact Assessment Directive 2014/52/EU amending Directive 2011/92/EU and therefore does not require screening or an EIA Report.

The Promoter has been assessed by the EIB as being a private company not operating in the utilities sector and not having the status of a contracting entity, and is thus not subject to EU rules on public procurement.