The European Investment Bank (EIB) has signed a €100m guarantee agreement with German bank Landesbank Saar (SaarLB) for investments in the renewable energy sector.
Under the terms of the agreement, the EIB will cover up to 50% of the risk on ten existing SaarLB loans for both wind and solar projects in France.
EIB's France and Germany operations vice-president Ambroise Fayolle said: “We have for many years been working very closely and constructively with SaarLB to put together loans in the renewable energies field.”
The deal will facilitate SaarLB to make nearly €200m of additional loans available for renewable energy projects.
SaarLB's director Frank Eloy said: “We have long been financing renewable energy projects in Germany and France as they contribute to structurally change and prepare for the future in both countries.
“And at the same time, they form an important part of our SME-focused business model. We are delighted that the EIB guarantee is increasing our scope for additional lending and that we are building on our excellent long-term cooperation with the EIB.”
EFSI is part of the investment plan for Europe that allows the European Union (EU) to invest €315bn over the next three years. This is the first time that EIB has used the EFSI guarantees for this type of risk sharing.
Image: EIB signs guarantee agreement with German bank Landesbank Saar. Photo: courtesy of EIB.