Xylem Inc. has signed a $158 million (€120 million) financing agreement with the European Investment Bank to fund innovative and aspirational research and development (R&D) projects across Europe.
The deal underscores the EIB’s involvement in the water sector and is part of the The Risk Sharing Finance Facility (RSFF) initiative run by the EIB and the European Commission to promote R&D in the European Union. Representatives of Xylem and the EIB convened in Luxembourg to commemorate the formal signing of the agreement.
The funds will be available from 2013 to 2014 as loans to finance the research and development of solutions to a range of complex challenges facing the water industry, including developing new innovative and sustainable products and services for biological water treatment, desalination, filtration and disinfection as well as improving the control of such processes. The research projects will take place at Xylem’s facilities in the U.K., Germany, Italy, Austria, Sweden, Norway and Hungary.
“We are proud to be partners with the European Investment Bank on this exciting initiative,” said Gretchen McClain, Xylem’s president and CEO. “Innovative and pioneering research is at the very heart of what Xylem does. As global leaders in water, our mission is to play a leading role in solving the multifaceted issues we all face in securing a sustainable water supply. This partnership with the EIB will enable us to invest considerably in market-leading research over the next two years.”
“With the financing that is now in place, Xylem will be able to enhance their knowledge and expertise in the field of water and wastewater handling technologies,” said EIB Vice President Jonathan Taylor. “This is of particular importance, as one of the EIB’s goals is to increase the potential of the European knowledge economy.”