By Daniel Hunter

The extension of the Northern Line of the London Underground has received £480m worth of funding from the European Investment Bank.

The long-term loan agreed this week represents nearly 50% of the overall cost of the new London Underground link that will enable the construction of tens of thousands of new homes, offices and support 24,000 jobs helping to regenerate Vauxhall, Nine Elms and Battersea once operational.

“Long-term investment to improve transport connections in Europe’s largest city benefits both passengers and businesses. The European Investment Bank is pleased to support this extension of the Northern Line. It will both improve connections to Battersea and unlock regeneration in Wandsworth, Lambeth and Southwark. This will also be supported by innovative contributions from developers. The new engagement builds on recent EIB backing for significant investment in Crossrail, London Overground and the DLR.” said Jonathan Taylor, European Investment Bank Vice President.

The Mayor of London, Boris Johnson, said: "We are developing an innovative package of private funding to build the Northern Line extension which exploits the huge commercial potential of this growing area of the capital. Today’s confirmation of a significant EIB loan is a pivotal milestone in our regeneration plans to develop a new transport link supporting tens of thousands of new homes and jobs."

Once operational in 2020, the new line will cut journey times from Battersea to the West End and the City to 15 minutes and companies across the country will be involved in construction work expected to start in the coming months.

In the last five years the European Investment Bank has provided more than £4.5bn for investment in transport projects across the UK. Recent EIB engagement in London has included support for widening the M25, London Gateway Port, construction of Crossrail and London Overground, as well as new trains for Crossrail, London Overground and Thameslink.

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