EIB signs Sweden infrastructure investment deal17/02/17Government
The European Investment Bank (EIB) has signed a SEK 900 million (~€95.1m) agreement to invest in local infrastructure in the Nordic countries under the European Fund for Strategic Investments.
Jan Vapaavuori, the EIB’s Vice President, explained how the funds would be used to develop infrastructure: “The Nordic infrastructure market has a significant investment backlog and faces limited funding opportunities. Many of these projects are relatively small, making it challenging for the EIB to directly support them.”
The funding was delivered through the Infranode I investment platform, which Vapaavuori said would help to overcome the challenges faced by the EIB when making specific, targeted investments: “It is thanks to Infranode acting as local intermediary that we can lend our financial support here, in line with the Bank’s main objective: improving people’s lives through its investments. The EFSI guarantee is another important catalyst for our first ever long-term equity injection in a local platform in Sweden.”
European Commissioner for Trade Cecilia Malmström further outlined the role new investments would play: “The investment plan plays an important role, and contributes to investments in infrastructure all over Europe. This agreement allows the Nordic countries to benefit even more from this. Europe needs investments – they boost growth and create jobs.”
The European Fund for Strategic Investments is the central pillar of the European Commission’s Juncker Plan, a priority for Commission President Jean-Claude Juncker, and allows the EIB to invest in more projects while protecting the bank from risk.