EIB signs €115 million loan to Luminor to support businesses across the Baltics
The funding aims to improve access to finance in the Baltic region, with a focus on supporting the green transition.
The agreement will facilitate over €332 million in new financing for businesses.
The additional lending is aimed at small to medium-sized companies and mid-caps.
The European Investment Bank (EIB) and Luminor Bank AS today signed a €115 million agreement to facilitate additional lending to small to medium-sized companies and mid-caps in Estonia, Latvia and Lithuania. The blending of the EIB loan with Luminor’s resources will pave the way for over €332 million in new financing with more favourable conditions for businesses across the Baltics.
The loan is intended to stimulate growth in the Baltic region, with a focus on supporting the green transition of the economy. The financing will be used for investment that will contribute to the reduction of overall greenhouse gas emissions, while helping the Baltic countries to meet the climate targets in their nationwide strategies. Some 85% of the finance unlocked by the EIB is expected to benefit cohesion regions and thus help to reduce regional income disparities.
“The Baltic countries are dynamic and forward-looking, with the green transition increasingly in economic focus,” said EIB Vice-President Thomas Östros, responsible for the Bank’s operations in the region. “With that in mind, improving access to adequate financing for small businesses and mid-caps is instrumental in ensuring the financial viability of their projects and growth, and it ultimately supports employment and social cohesion in Estonia, Latvia and Lithuania.”
“Luminor’s mission is to improve the financial health of our customers and our home countries and, while the economic outlook across Europe remains uncertain, this initiative will further strengthen our continued readiness to support SME businesses as lending demand resumes,” said Palle Nordahl, Chief Financial Officer at Luminor. “We also welcome the EIB’s commitment to financing investments that promote the transition to a greener economy, while stimulating economic growth across our home nations.”
Bulgaria: EIB signs an additional loan for €50 million with Sofia Municipality
The new loan will increase the share of urban development projects with a focus on pedestrian mobility infrastructure.
It was granted following authorisation for additional financing, topping up the original €60 million framework loan approved in 2021.
EIB Vice-President Lilyana Pavlova and Mayor of Sofia Yordanka Fandakova voiced their satisfaction with the longstanding fruitful cooperation between the municipality and the Bank.
The signature of a loan by the European Investment Bank (EIB) for a further €50 million for Sofia Municipality was celebrated today. The loan will co-finance Sofia’s multi-year investment programme of urban development projects, including the construction and rehabilitation of municipal roads, tramways, cycling and walking paths and other urban infrastructure within the scope of the Bulgarian capital’s current Sustainable Urban Mobility Plan (SUMP).
In particular, the loan will enable Sofia Municipality to expand the share of urban development projects focused on pedestrian mobility infrastructure and contributing to green objectives within the overall project scope.
This will improve the everyday lives of locals, including people with reduced mobility, and contribute to cleaner air.
EIB Vice-President Lilyana Pavlova remarked, “The EIB is a longstanding partner of Sofia Municipality, financing priority public infrastructure investments. The Bank has supported a number of projects, including to develop the metro, rehabilitate the urban road network, re-equip the public transport fleet, and create integrated waste treatment facilities and other urban and social infrastructure. We also provide advisory services for project preparation and implementation. As the EU Climate Bank, we have always shown our support with a clear vision of the green and sustainable future that we all hold as an ideal.”
Yordanka Fandakova, Mayor of Sofia, added, “We have created a special programme for the construction and renovation of sidewalks, which we aim to renew in all parts of Sofia. This is one of the most important investments in our neighbourhoods, and will enable us to multiply pavement repair efforts more than ten times over. Ultimately, we aim to make travelling short distances through the city more pleasant for all, as well as more convenient, comfortable, safe and accessible for mothers with strollers and people with disabilities. Encouraging pedestrian traffic is also important for improving air quality.”
The EIB has worked closely with Bulgaria since 1992 and has supported its economy with around €5.7 billion to date.
Diana Shipping Inc. Announces Signing of a Sustainability Linked Loan with ABN AMRO Bank to Refinance Four Separate Existing Loans
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that on May 14, 2021, it signed a sustainability linked loan facility with ABN AMRO Bank N.V., through six wholly-owned subsidiaries (the “Borrowers”), in the amount of US$91 million. The purpose of the senior secured term loan facility was the refinancing of existing indebtedness on the Borrowers’ vessels, m/v Medusa, m/v New Orleans, m/v Los Angeles, m/v Philadelphia, m/v Santa Barbara and m/v Artemis, and for general corporate purposes.
Commenting on this transaction, the Company’s Chief Executive Officer, Ms. Semiramis Paliou, stated:
“We are pleased to have signed this loan agreement with ABN AMRO Bank N.V., which is in accordance with our policy of managing our cash flow and loan maturities proactively for the benefit of our shareholders. The added sustainability aspect is essential not only for the potential additional cost savings, but more importantly because it is in line with the Company’s commitment towards its long-term sustainability goals.”
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.24 years.
Globus Maritime Limited Announces Closing of $34.25 Million Loan
Globus Maritime Limited, a dry bulk shipping company, has successfully closed the refinancing of its six vessels through a Term Loan Facility with CIT Bank, N.A., the majority proceeds of which were used to repay the Company’s loan facility with EnTrust Global’s Blue Ocean Fund.
Athanasios (“Thanos”) Feidakis, President and CEO of Globus, commented:
“We are very pleased that we have managed to refinance our fleet by not only being able to extend the maturity of the loan but also by reducing the margin of our existing loan from 8.5% to 3.75% per annum, enabling us to save money in interest cost. For example, in 2021 we expect to save approximately $1.5 million compared to the costs of our previous loan agreement and, in 2022, when we will have completed a full year with this new CIT Bank loan and a lower outstanding principal balance, the savings in interest cost is expected to reach up to approximately $2.2 million compared to 2020. Additionally, we have also agreed to enter into interest rate swap transactions in order to hedge the exposure to interest rate fluctuations. Upon the completion of this transaction our bank debt stands at around $34 million, compared to total assets of the Company of around $144 million adjusted to reflect the market value of the six vessels. We believe our new financial position is healthy and will help us accomplish our long-term plans.”
EIB agrees EUR 250 million loan for new regional hospital in Iasi and confirms future support for healthcare investment across Romania
New 850 bed hospital to transform patient care, medical technology and university research
New regional hospital to provide specialised healthcare for 3.2 million people in north-eastern Romania
First hospital in Romania to benefit under new EIB regional hospital focus, including advisory and financial support
Specialised hospital care and medical treatment for 3.2 million people in north-eastern Romania will be transformed by EUR 250 million new financial support by the European Investment Bank for construction of a new regional hospital in the country’s second city Iasi. The new 27-year loan represents the EIB’s largest ever support for healthcare in Romania.
Further EIB investment in Romanian hospitals is expected to be confirmed in the coming months.
“The Iași Emergency Regional Hospital will not only be a new building, but once fully operational, it will allow the health system to move into a new era of healthcare provision, overcoming critical gaps in the sector and making a long-term contribution to the health of the population. Investing in the health system is investing in people, and the new EIB financing of EUR 250 million signed today is making the plans to build a new regional hospital in Iasi a reality, which will lead to improved healthcare in north-eastern Romania and develop medical education in Iași. As Minister of Finance, I strongly support investment in the health sector, with the health budget as a priority. The European Investment Bank’s financial, technical and advisory support will accelerate the provision of better health services based on best practices and ensure that investments in the Romanian healthcare system benefit from the EIB’s extensive know-how and experience supporting investment in hospitals across Europe” said Alexandru Nazare, Minister of Finance of Romania and Governor of the European Investment Bank.
“The European Investment Bank is pleased to agree our largest ever financing for hospital investment in Romania. The EUR 250 million long-term EIB loan, combined with significant advisory and technical assistance support, will back construction of the new Iasi Regional Hospital and deliver modern, efficient and better health care for millions of people in north-eastern Romania. The new facility will increase access to specialist patient treatment and improve medical education for future generations of doctors.” said Christian Kettel Thomsen, European Investment Bank Vice President responsible for lending operations in Romania.
Increasing access to quality healthcare
The new EIB support will improve the quality and efficiency of acute, secondary and tertiary medical treatment in north eastern Romania, using the latest technology and healthcare expertise.
The new hospital will also help to strengthen public health response to the COVID-19 pandemic and improve preparedness against future pandemics.
The 850 bed facility will replace the existing, 260 year old, Saint Spiridon County Emergency Hospital and improve teaching and research at the Grigore Popa University of Medicine and Pharmacy in Iasi.
The new 7-storey hospital will provide both in-patient and out-patient health care and is expected to be operational in 2027.
First Romanian hospital to benefit under new EIB advisory and financing initiative
The EIB is currently appraising possible financing for two other regional hospitals in Romania in Cluj and Craiova.
All three projects have benefitted from an extensive advisory and technical assistance package provided by EIB experts and external consultants in the context of EU funded programmes, including the European Investment Advisory Hub, JASPERS and PASSA. The advisory support included the development of feasibility studies, advice on project implementation and on the optimal use of EU funds.
Last year the EIB Group provided more than EUR 809 million of new financing to support higher education, water distribution, energy efficiency and private sector investment across Romania.
The European Investment Advisory Hub (EIAH or the Advisory Hub) is a partnership between the EIB Group and the European Commission as a part of the Investment Plan for Europe. It is designed to act as a single point of entry to a comprehensive offer of advisory services and technical assistance, aiming at providing targeted support to identify, prepare and develop investment projects across the European Union. It supports both public and private project promoters.
Czech Republic: EIB signs a CZK 3.43 billion loan with CD Cargo to modernise and expand its freight services
Financing for 50 new electric locomotives and 140 freight intermodal wagons
Retrofit of 310 locomotives with European Railway Traffic Management System
Supporting sustainable transport and cohesion in the Czech Republic
The European Investment Bank signed a CZK 3.43 billion loan (equivalent to €130 million) with CD Cargo, the largest Czech railway transport provider, to support the acquisition of new electric locomotive and replacement of obsolete rolling stock. CD Cargo is the subsidiary company of České dráhy, the national passenger rail carrier fully owned by the Czech Republic.
The new EIB loan will support CD Cargo in its ambitious intermodal transport development plan, which aims at responding to the growing market and brining its fleet in compliance with European interoperability requirements. The project consists of the acquisition of 50 electric locomotives and 140 freight intermodal wagons as well as retrofit of around 310 older locomotives with European Railway Traffic Management System (ERTMS).
EIB Vice-President Lilyana Pavlova said: “Our partnership with CD Cargo will improve the capacity, safety and quality of freight services in the Czech Republic, notably through the use of modern control and signalling system. By promoting a shift from road to rail transport, this project will have a positive impact on the environment and will thus contribute to supporting the transition of the Czech Republic to a low-carbon economy, in line with the objectives of our recently approved EIB Climate Bank Roadmap and of the Transport Policy of the Czech Republic.”
We are delighted to sign our first ever agreement with the EIB. It comes after an extensive process that allowed the EU bank to better know our company and positively assess its potential for growth. The long-term lending approach and the distinctive, favourable terms of the EIB loan will allow ČD Cargo to invest in its future with a sustainable growth perspective,” said Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo, a.s.
Investment related to the European Railway Traffic Management System (ERTMS) could be complemented by a grant component from the CEF Transport Blending Facility, designed to promote projects contributing to the environmental sustainability and efficiency of the transport sector in Europe. The CEF Transport Blending Facility is implemented via a cooperation framework between the European Commission and implementing partners such as the EIB. The assets purchased within this project will be partly used in Convergence Regions in the Czech Republic and largely on the Trans-European Transport Network (TEN-T).
Performance Shipping Inc. Announces Agreement On The Main Terms For A New Amortizing Term Loan Facility Of Up To US$31.5 Million With Piraeus Bank
Performance Shipping Inc. specializing in the ownership of tankers, announced that it has accepted an offer letter whereby it intends to enter into an agreement for a new amortizing term loan facility of up to US$31.5 million with Piraeus Bank S.A. (the “Facility”) through three separate wholly-owned subsidiaries of the Company. This Facility is subject to the completion of customary closing conditions and the execution of a final loan agreement by the Company and its lenders. Proceeds from the Facility will be used to refinance an existing term loan facility for the M/T P. Fos and M/T P. Kikuma with Nordea Bank Abp, filial i Norge, through a first advance of up to US$22.5 million and to partially finance the acquisition of a fifth Aframax tanker vessel through a second advance of up to US$9.0 million. This Facility shall bear interest at the rate of LIBOR plus a margin of 2.85% per annum.
Assuming that the Company draws down the entire amount available under both advances, the Facility will be repayable in sixteen (16) quarterly installments of US$1.1 million, and concurrent with the sixteenth quarterly installment, within four years from the drawdown date, the Company will owe a balloon payment of US$13.9 million.
Separately, the Company has obtained approval from Nordea Bank Abp, filial i Norge to amend the existing credit facility, reducing the quarterly installments on the remaining US$28.1 million term loan secured by the M/T Blue Moon and M/T Briolette.
Commenting on the term loan facility, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“We are pleased to have agreed on the main terms for a new amortizing term loan facility of up to US$31.5 million with Piraeus Bank S.A. This is the second term loan facility that the Company has procured since its exclusive fleet deployment in the tanker sector and a testament to its strong relationships with commercial banks. This facility paves the way for the acquisition of our fifth Aframax tanker and the reduction of our quarterly installments to reduce our daily vessel cash breakeven, thus further facilitating the payment of dividends pursuant to our variable dividend policy. Upon drawdown of the facility and acquisition of the fifth Aframax tanker, we expect to comply with our stated financial leverage policy of net debt upon incurrence being below 35.0% of our fleet value.”…
Spain: Support for the European automotive industry – EIB finances ZANINI Auto Group’s innovation strategy with €25 million loan
The EU bank funds will enable ZANINI to advance driver assistance technologies to develop self-driving vehicles and new safety systems.
The agreement is supported by the Investment Plan for Europe.
The European Investment Bank (EIB) will provide €25 million to finance the research, development and innovation (RDI) investments of Spanish group ZANINI, which specialises in the development of components for the automotive sector. The EU bank is providing these funds under the Investment Plan for Europe, with a view to supporting innovation within the European automotive industry and thereby driving the economic recovery following the COVID-19 crisis.
The investments will be implemented over four years – by 2023 – at the multinational’s facilities in Barcelona. The project will make it possible to improve its production plants and expand its capacity by building a new plant in Parets del Vallès. The aim of this innovation strategy is to strengthen its new business line focusing on new technologies for radar integration, which is key to self-driving vehicle development (ZANINI’s specialist area). Environmental and safety improvements will also be made in the facilities and the company’s ICT technologies will be modernised.
ZANINI’s EIB-financed RDI strategy will also enable the company to develop new Advanced Driver-Assistance Systems (ADAS) technologies. These will improve vehicle safety by providing new automatic emergency braking and speed control systems. The development of these new technologies will contribute to the design of lighter and therefore more energy-efficient and less polluting vehicles.
The loan is backed by the Investment Plan for Europe, which enables the EIB to finance projects that present particular value added owing to their structure or nature. The project will help to safeguard and create highly skilled jobs. ZANINI has production centres in 10 countries and currently has almost 1 400 employees. The implementation of this innovation project will enable it to expand its headcount, including in its RDI division.
“We are delighted to sign an agreement that will help drive innovation in the European automotive industry, a sector employing 14 million people and that, like many others, is having a particularly difficult time due to the economic crisis caused by the pandemic,” said EIB Vice-President Emma Navarro, responsible for the Bank’s activities in Spain. “This financing will enable ZANINI to implement cutting-edge technologies in Spain to drive the development of self-driving vehicles and improve car safety and energy efficiency. Supporting innovation and the development of clean technologies is a key priority for the EIB to foster a sustainable economic recovery.”
Paolo Gentiloni, European Commissioner for the Economy, said: “With European Investment Bank support under InvestEU, ZANINI will be able to expand its capacity – including with the construction of a new manufacturing plant near Barcelona – and will invest in innovation and the development of safer and less polluting vehicles. Supporting new technologies in Europe – such as the development of self-driving vehicles – will be key to the recovery of our economies.”
ZANINI Chairman Joan Miquel Torras added: “With this long-term loan from the EIB, ZANINI is safeguarding innovation financing for the coming years and will be able to develop its Expansion Plan linked to the new line of electromagnetic transparency and backlighting (ETB) products for electric and self-driving cars.”
Deutsche Bank Commercial Real Estate Group originates first SONIA benchmark based loan
Deutsche Bank announced that its European Commercial Real Estate (CRE) Group has partnered with Kennedy Wilson Europe Real Estate II SCSp to originate its first loan benchmarked to Sterling Over Night Index Average (SONIA). The benchmark was used as an alternative to the London Inter-Bank Offered Rate (LIBOR).
The loan references a compounded average of SONIA set in arrears with a five business day lag. It marks not only Deutsche Bank and Kennedy Wilson’s first LIBOR alternative rate loan, but also one of the first adoptions of a loan referencing an average of overnight SONIA in the entire market. The loan refinances Kennedy Wilson’s acquisition of Ditton Park in West London.
Dino Paparelli, Head of Commercial Real Estate Europe, said: “This loan is the result of the application of Deutsche Bank’s structuring expertise to the CRE market’s need to transition to SONIA, and represents a collaboration between Deutsche Bank Commercial Real Estate and Kennedy Wilson.”
SONIA reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions. It is based on actual transactions and is published by the Bank of England.
Italy: Terna and the EIB agree on a EUR 490 million loan for network upgrade
– The EU bank will support with a 22-year loan the company’s investments to modernize e the national electricity transmission grid
– This disbursement will bring the EIB outstanding loans to Terna to EUR 2.15 billion
Terna and the European Investment Bank (EIB) signed today an agreement for a EUR 490 million loan to support investments that will improve the reliability and quality of the electricity grid.
For the first time in the history of the relationship between Terna and the EIB, the loan will be allocated to support “asset renewal investments”. This includes assets and individual components replacement, as well as the adoption of the most advanced solutions in terms of eco-compatibility with the host environment. This disbursement will bring the EIB outstanding loans to Terna to EUR 2.15 billion.
The loan, which has a longer term and lower costs than those available on the market, is part of Terna’s financial structure optimization policy and is coherent with the EIB’s main financing activities in the energy and environmental field.
The loan will be disbursed in two fixed-rate tranches, each with a maturity of around 22 years. The first tranche drawdown is expected in June 2020 for a total amount of EUR 147 million, with a fixed rate of 0.717%, the second tranche drawdown is expected in March 2021 for a total amount of EUR 343 million and a fixed rate of 0.78%.Dario Scannapieco, Vice-President of the EIB, said: “This operation confirms the commitment of the European Union’s bank in upgrading the crucial sector of electricity grids. It also further strengthens the EIB’s fruitful partnership with Terna: in the last few years the bank has supported the company’s key investment plans in transmission-grid modernisation and development and in cross border high quality projects such as the Italy-France interconnection. With this new loan our ongoing financial commitment with Terna exceeds a total of two billion euro”.
“The contribution that the European Investment Bank makes to improve the reliability and quality of the electricity grid is very important to us. The acceleration of investments in the national transmission grid, in support of the energy transition taking place in the country, allows us to look with confidence towards an increasingly secure, efficient and sustainable integrated electricity market” declared Luigi Ferraris, CEO and General Manager of Terna.