Sustainability helps Ramirent secure EIB loan
December 06, 2017 – Finnish rental group Ramirent has secured a €50m (£42.7m) loan to modernise and expand its fleet.
The loan from the European Investment Bank (EIB) was made possible by the European Fund for Strategic Investments (EFSI), which was launched by the EIB Group and the European Commission to boost the competitiveness of the European economy.
The EIB loan said that the loan underpins Ramirent’s European growth strategy and commitment to a circular economy, as the company’s equipment is used at more than double the rate of equipment that is purchased and not rented. It will support Ramirent’s innovation projects – especially product development related to construction safety – and will help to improve the performance and environmental impact of its fleet in 2018.
“Sharing is caring,” said vice-president Alexander Stubb, responsible for EIB operations in Northern European countries. “And the EU bank very much cares about environmental impact and the reasonable use of scarce resources. Business models such as Ramirent’s, based on sharing and re-using common goods, help to extend the life and use of products and lead the way to a more sustainable economy.”
“We are delighted to have secured this competitive financing from a major European financing institution such as the EIB on the basis of the sustainable business model that Ramirent represents,” said Ramirent president and CEO Tapio Kolunsarka. “We are further encouraged to continue increasing the attractiveness of renting versus owning by improving our service levels and offering especially for small and medium-sized businesses.”
Jyrki Katainen, vice-president of the European Commission responsible for jobs, growth, investment and competitiveness, added: “The EFSI loan agreement with Ramirent is an excellent example of the Investment Plan for Europe financing growth strategies of European mid-cap companies. Coupled with the company’s commitment to circular economy, the agreement demonstrates a more sustainable use of our scarce resources as well as delivering growth and job opportunities in the services sector. I encourage other growth-seeking midcap companies to follow the example and use the opportunities offered by the EFSI as well.”
Promoting a circular economy, where the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste is minimised is a key EU policy priority. The EIB together with the European Commission supports the member states in their transition towards a circular economy by providing finance and advisory services for projects. During the last five years the EIB has co-financed projects worth EUR 2.4 billion with a positive impact on sustainable and economic growth, competitiveness and employment.