€70 million EFSI-backed EIB loan to Austrian powertrain system developer AVL
The European Investment Bank (EIB i) is providing a EUR 70m loan to AVL List GmbH (AVL) under the Juncker Plan. The loan is specifically targeted at supporting the business with its electric drive-related activities, including selected R&D projects for hybrid and fully electric powertrains as well as advanced driver assistance systems (ADAS) for connected and autonomous vehicles. The EIB loan was made possible by the European Fund for Strategic Investments (EFSI). EFSI is the main pillar of the Investment Plan for Europe (IPE), under which the EIB Group and the European Commission are working together as strategic partners to boost the competitiveness of the European economy.
Based in Austria, AVL is a world leader in the development of innovative powertrain systems - together with the necessary measurement and testing technology and simulation software - for the global automotive and transport industries. For 70 years, AVL has been working with global companies across the world in fields ranging from internal combustion engines, fuel cells and electric drives to alternative fuels, control software, transmissions and batteries.
European Commission Vice-President, Jyrki Katainen i, responsible for Jobs, Growth, Investment and Competitiveness, said: "I am very pleased to see an Austrian company making the most of the Investment Plan. Thanks to support from the European Fund for Strategic Investments, the European Investment Bank is able to lend AVL EUR 70 million to expand its research and development activities, developing new, innovative and environmentally-friendly technology to use for the future of mobility. The Investment Plan continues to meet its objectives: boosting innovation, creating jobs and contributing to the Paris agreement goals to fight climate change. I hope to see more projects receiving financing in Austria in the near future."
The EIB Vice-President responsible for operations in Austria, Andrew McDowell, said: “I am particularly pleased that this new loan will continue our constructive and fruitful partnership between the EU Bank and AVL. As the EU Bank, we support pioneering technology companies like AVL, which are shaping the future with cost-efficient, sustainable, technological development. Cutting-edge technology creates jobs and fosters high-level expertise, thus having a direct and positive impact on people's daily lives. AVL is a major innovation leader in the powertrain sector, paving the way for more environmentally friendly vehicles and efficient measures to combat climate change, which is one of the EU bank's priorities.”
AVL Group CFO Werner Schuster added: “This EIB loan represents the continuation of a successful partnership in place for more than ten years, which started in 2007 with the provision of one of the EIB's first direct corporate research, development and innovation loans in Europe. AVL will apply this financing to support in-house research for the development of electric drives for hybrids and e-vehicles, fuel-cell drive systems and autonomous vehicles (ADAS), as well as the development of the associated measurement, testing and simulation technology. With this financing, the EIB is making a major contribution to AVL's further development of highly creative, sophisticated and customised powertrain system solutions, including reduced CO2 emissions for more environmentally friendly vehicles.”
Background information
EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
AVL
AVL is the world's largest independent company developing innovative powertrain systems - together with the necessary measurement and testing technology and simulation software - for the global automotive and transport industries. For 70 years, AVL has been working with global companies across the world in fields ranging from internal combustion engines, fuel cells and electric powertrains to alternative fuels, control software, transmissions and batteries.
Investment Plan for Europe
The Investment Plan for Europe (the Juncker Plan) is one of the EU's key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use will be made of new and existing financial resources. The EIB Group is playing a vital role in this investment plan. With guarantees from the European Fund for Strategic Investments (EFSI), the EIB and EIF will be able to take on a higher share of project risk, encouraging private investors to participate in the projects. In addition to EFSI, the new EIAH advisory platform helps public and private-sector project promoters to structure investment projects more professionally. The investment plan also aims to create a more investment-friendly EU regulatory environment, particularly in the digital, energy and capital markets sectors. In December 2017, the European Parliament and Member States reached an agreement to extend the duration of EFSI and increase its financial capacity.