Better Place gets 40 mln euro EIB loan for electric car network

TEL AVIV Aug 28 (Reuters) - California-based venture Better Place has secured a 40 million euro ($50 million) loan from the European Investment Bank (EIB) to further develop its global electric car network.

About 30 million euros will be used to finalise network deployments and fund operations in Denmark while the rest of the loan will be used for similar purposes in Israel, Better Place said on Tuesday.

This is the company's first credit facility from a financial institution.

"The credit facility gives us a more flexible, balanced capital structure that allows us to expand our operations without solely relying on equity," Better Place founder and Chief Executive Shai Agassi said. "We look forward to continued collaboration with EIB as our European operations grow."

Better Place's model combines charging terminals with battery swap stations in order to extend the driving range. In Denmark, its network already connects Copenhagen to Aarhus.

"Our goal is to continue to work with European institutions and partners who share our vision for electric transport so that one day you can drive from Copenhagen to Paris in a fully electric car by switching batteries along the way," Agassi said.

In Israel, the company's first market, more than half of the planned network of battery switch stations is available for use by customers. In Israel and Denmark combined, the company has more than 500 Renault Fluence ZE electric cars with switchable batteries on the roads.

Better Place has raised more than $750 million of equity financing from investors including HSBC and holding company Israel Corp.