EIB-Deutsche Bank accord backs EUR 1bn of loans for wind manufacturers

The European Investment Bank (EIB) announced today that it will extend EUR 500 million (USD 541.1m) in counter-guarantees to Deutsche Bank AG (ETR:DBK) to facilitate lending to manufacturers of wind energy equipment in Europe.

The guarantee facility will allow the German lender to provide advance payments and performance guarantees of up to EUR 1 billion to manufacturers when taking on new wind projects across the EU. It is expected to initiate private investments of up to EUR 8 billion, a press statement said.

The partnership announced on Wednesday activates the EIB’s EUR-5-billion package of counter-guarantees aimed at sharing credit risks faced by commercial banks when dealing with players in the wind industry and thus improving access to finance for wind manufacturers. The initiative was announced in December and is part of the European Wind Power Package.

(EUR 1 = USD 1.082)

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