New Delhi, Oct 19: European Investment Bank (EIB) will extend 50 million euros to Rabo India Finance, which would be used to fund private companies for employment generation and to foster economic growth. "The line of credit from EIB will enable Rabo India Finance to extend long-term funds to companies in infrastructure, financial sector, biotechnology, renewable energy and it," an EIB official told here.

The fund would be used by the Indian arm of Netherland-based Rabobank during the next 12 months.

"With this loan, EIB has reopened its activities in India with a view to further support projects of mutual interest for Indian and EU-based companies," the official said.

EIB, which is a developmental bank based in Europe, intends to forge greater ties with Indian banks and FIs for stepping up its investments in India.

The EIB loan to Rabo India is part of EU cooperation policy with emerging economies.

EIB targets a 2.48 billion euro investment in Asia and Latin America to support the subsidiaries of EU-based companies.

On an average, EIB provides upto 50 per cent of project costs, but it arranges one-third of the funding and the remainder is done through co-financing with other FIs.

Last year, the development bank provided loans totaling 40 billion euros to various banks and companies.
Bureau Report