The FINANCIAL — Some 24 Further Education Colleges across the UK will benefit from lower cost finance comprising a total of £200 million to fund almost £1billion of capital projects, due to a loan facility made available following the signing of a new contract between Barclays and the European Investment Bank (EIB).
The Barclays ‘EIB Loan Support for Education’ scheme aims to help reduce the cost of borrowing for institutions undertaking capital investment projects, ranging from refurbishments to campus expansion or redevelopment. The loans taken out by the colleges range from £1m to £16m with a term of three years or more.
"Customers eligible for the loan support will benefit from a single up-front payment of between £20k and £315k, which can be used to reduce the cost of borrowing or for re-investment in the institution," Barclays informs.
Chris Hearn, Head of Education at Barclays Commercial Bank, said: “Barclays Commercial Bank is delighted to be able to support these 24 colleges with access to this practical loan package that will make a huge difference to these institutions and their students. Barclays has an unrivalled, long standing relationship with the Further Education Sector and we already lend £608m across 170 Further Education Colleges in the UK.”
Simon Brooks, EIB Vice President responsible for lending operations in the UK, said, “Many of the UK’s Further Education colleges need to modernise their campuses in order to deliver effectively to their students the courses and training that are needed in today's economy. This loan means that Barclays Commercial Bank, in partnership with the European Investment Bank, will be able to offer FE colleges very attractive financial terms to allow them to undertake this much needed updating. I am pleased we are able to make this possible.”
Barclays has substantial experience in all areas of the education sector and has a relationship with nearly 40 per cent of the Further Education Colleges in the UK. Other clients in the education sector range from state funded schools, colleges and universities to the largest independent schools. In addition, Barclays also has strong contacts in the wider education community, including the funding agencies and works closely with the Association of Colleges and the Learning and Skills Council at both national and regional levels.
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