THE GOVERNMENT HAS today announced a €434 million financing initiative to support the development of more than 2,700 new beds for students.

The initiative, which was today agreed by the European Investment Bank (EIB) and the Housing Finance Agency (HFA), will allow for the delivery of new and additional student beds through the construction and refurbishment of accommodation at Irish universities. 

The funding arrangement involves a 40-year €200 million loan from the EIB, with the HFA more than matching the investment, bringing the total to €434 million. 

“This announcement will assist institutions with the cost of building accommodation and help bridge the gap between viability and affordability for students,” Minister for Further and Higher Education Simon Harris said. 

“Applications will now open and I look forward to seeing the outcome of this important partnership,” Harris said. 

HFA chief executive Barry O’Leary said that the new initiative will “provide long-term financing to Irish higher education institutions to support both construction of new modern and energy efficient accommodation buildings and renovation of existing buildings to improve facilities and energy efficiency”.

“The EIB backing will reduce financing costs for universities and enable lower monthly rents for students living in new accommodation,” O’Leary said. 

The investment announced today is separate to the Government announcement where a total of up to €61 million has been provided to allow for the the development of over 1,000 beds across four universities. The Government has said the delivery of these beds will begin next year. 

The 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.