The European Investment Bank (EIB) and the European Aeronautic Defense and Space Co. (EADS) yesterday said they signed an approximately $488 million finance contract in support of EADS Groups innovation and research and development programs.
This project focuses on developing innovative products aimed at reducing the impact of aviation on the environment in terms of energy efficiency, pollutant emissions and noise, the statement said. It expects to develop effective solutions with a direct impact on aeronautics design and production, by improving aircraft aerodynamics and optimizing safety and flight control systems.
This new finance contract brings the total EIB support under this agreement to about $1 billion.
The loan reflects the decade-long partnership formed between EIB and EADS.
The loan is the second tranche of a first agreement signed in August 2011, whereby EIB already made available about $647.3 million to EADS.
This is one of the first major loans EIB has made to finance innovation in Europe since the member states unanimously decided to give the European Union bank the means to stimulate the economy by increasing its capital by about $13 billion.
EIB Vice President Philippe de Fontaine Vive said, “This first major loan following the EIB’s capital increase demonstrates our priority commitment to innovation and R&D in Europe. The bank aims to help develop a successful and competitive economy by focusing on leading edge technologies, which hold the key to the future in terms of sustainable economic development.”
Harald Wilhelm, CFO of EADS and Airbus, said: “Innovation and research are at the heart of EADS’ mission and essential to guarantee the long-term success of the group. The EIB is one of our privileged finance partners, which has been supporting EADS for several years in developing ever innovative technologies. We very much appreciate this new agreement, which demonstrates the solidity of our relationship and our joint will to accompany the sustainable development of air transport.”