The European Investment Bank (EIB) said today it has provided a EUR-70-million (USD 82m) guarantee to Landesbank Saar (SaarLB) that will allow the latter to increase its renewable energy lending in France and Germany.
Under the agreement, signed on Wednesday, the EIB will guarantee up to 50% of the value of up to 10 of SaarLB's existing loans for wind and solar power projects in France and Germany. This will enable SaarLB to extend almost EUR 140 million of new loans for renewable energy projects in the two countries.
The agreement represents the second tranche of a EUR-150-million guarantee framework between the EIB and SaarLB. The first EUR-80-million guarantee, signed two years ago, allowed SaarLB to provide seven loans for wind projects totalling over EUR 160 million. The EU bank can share the risks on SaarLB's projects as it is itself partially covered by guarantees of the European Fund for Strategic Investments (EFSI).
SaarLB has so far focused on financing medium-sized wind and solar projects in France and Germany, said Frank Eloy, member of the board of management. "As part of the ongoing development of our business model in this core business area for the bank, we will expand our range of services to financing geothermal projects as well as possibly to Belgium and Luxembourg," Eloy added.
(EUR 1 = USD 1.169)
Choose your newsletter by Renewables Now. Join for free!