Brussels, 10/07/2001 (Agence Europe) - The European Investment Bank (EIB) has decided to grant a loan of EUR 93 million in favour of Philips Semiconductors Philippines Inc. (PSPI, a fully-owned subsidiary of Koninklijke Philips Electronics NV, the parent company of the Philips group) for the construction of the second integrated circuits assembly and test facility in Calamba, in the Philippines. The project covers the extension of the current production site and will more than double the capacity of the existing installations. The commercial risk of this 8-year loan will be guaranteed by Koninklijke Philips Electronics NV. Risks of currency non-transfer, expropriation, war and civil disturbance are covered by the European Union budget guarantee. The EIB writes that the "operation provides significant benefits": - Globally-operating Philips will optimise its production cycle for semiconductors and therefore improve its international competitiveness; - the project will create jobs with world class working conditions; - and will favour increased skill levels in the support industries, which gives scope for attracting further foreign direct investment.