The European Union’s lending arm, the European Investment Bank (EIB), announced its largest-ever commercial loan on Monday, saying it will provide €3 billion ($3.4 billion) to aircraft maker Airbus to boost the company’s research and development efforts.
“This new financing, unprecedented in the history of the EIB, aims to provide Airbus not only with the capacity but also the flexibility needed to invest in long-term research, development and innovation in both commercial aviation and security and defence,” said EIB Vice-President Ambroise Fayolle.
The loan comes as the EU looks to boost its own manufacturing and defense efforts in the face of stiff American and Chinese competition.
Project shows ‘Europe can move faster and at scale’
A statement It was noted on the EIB website on Monday: “The financing will support Airbus’s planned investments in advanced technologies and integrated systems as well as security and defense systems for commercial aviation until 2030. With specific investment projects located in France, Germany and Spain, it will enhance Europe’s aerospace and defense ecosystem.”
“The EIB Group is deploying its full firepower to strengthen Europe’s technological autonomy, industrial strength and economic competitiveness,” EIB President Nadia Calvino said.
Speaking in Brussels – at the signing of a contract for the transfer of the first €1 billion tranche – Calvino said the loan had been approved within six months of Airbus’ request, “which shows that Europe can move quickly and extensively to support its champions and strengthen its position in the emerging geopolitical landscape.”
The world’s largest development bank and the largest aircraft manufacturer are coming together
The EIB, headquartered in Luxembourg, is owned by EU member states and is responsible for long-term financing of the bloc’s institutions.
The EIB bills itself as the world’s largest development bank and is tasked with helping the EU achieve its political goals.
Airbus, created in 1970, is a consortium of French, German and Spanish aerospace companies. These merged in 2000 to form the European Aeronautic Defense and Space Company (EADS), which wholly owns Airbus.
Airbus is the largest manufacturer of airplanes and helicopters in the world, offering a wide range of commercial, corporate and military aircraft.
Headquartered in the Netherlands and France, the publicly traded company has assembly plants in France, Germany, Spain, Canada, China and the United States.
Edited by: Roshni Majumdar