The European Investment Bank (EIB) is providing EUR 150 million to the Export-Import Bank of India (EXIM Bank) to part-finance investments that will contribute to the mitigation of climate change or support the European Union’s presence in India. Mr T.C. Venkat Subramanian, Chairman and Managing Director of EXIM Bank, and EIB Vice-President Carlos Costa signed the loan agreement today in Luxembourg. “The financing operation we are signing today directly follows on from the Joint Statement issued at the EU-India summit held one year ago and supports the EU-India Strategic Partnership, which we wish to see developing further in the near future”, said EIB Vice-President Carlos Costa.

EXIM Bank will make available the proceeds of the loan to final beneficiaries carrying out investments that contribute to one of the following objectives: (a) climate change mitigation, through projects in the renewable energy and energy efficiency sectors, an objective that is expected to use up some two thirds of the loan, or (b) increasing the EU’s presence in India, through direct investment or transfers of technology and know-how from Europe, where one third of the loan is focused. Both objectives are set out in the EU mandate to lend in Asia and Latin America (ALA).

This is the second operation of the Bank in India, where the first operation dates back to 1993, a loan to Power Grid Corporation of India to upgrade the national electricity grid.