The loan follows a previously signed cooperation agreement laying down the operating procedures for an exchange of knowledge and experience between the two financial institutions to stimulate public investments in the Netherlands. The EIB makes EUR 250 million available to BNG Bank, which can lend this amount at low rates to local authorities, housing associations and healthcare institutions. Since the EIB finance may never finance more than 50% of the total value of a project, a total of at least EUR 500 million in projects can be realized together with the BNG Bank. The interest rate for the customers concerned will be lower than the interest rate of regular loans.
"BNG Bank is a partner for a sustainable Netherlands and aims at supporting government policy at the lowest possible cost. Through the EIB loan, BNG Bank enables smaller customers, who otherwise would not be eligible, to get access to EIB financing. The agreement thus fits well with the strategy of the bank, "says Olivier Labe, member of the Management Board of BNG Bank.
"As a bank, the EIB has a similar strategy to reach smaller customers, and the cooperation with BNG Bank comes at a good time," says Vice President Pim van Ballekom of the EIB. "There is a need for sustainable social housing in the Netherlands, with BNG Bank playing an important role as finance provider. This fits very well with the European objectives. This project brings together several priorities of the EIB and as a European financial institution, we give the signal that we are there where we are needed. "
The European Investment Bank (EIB) is an institution for long-term lending from the European Union and is owned by the EU Member States. The EIB makes long-term finance available for sound investment in order to contribute towards EU policy goals.
BNG Bank is a committed partner for a sustainable Netherlands. The bank supports public policies by providing cheap financing based on its AAA rating to include local authorities, housing associations and healthcare institutions. With a balance sheet of more than EUR 160 billion, BNG Bank is the fourth largest bank in the Netherlands.