By Jonathan Davies

Rolls-Royce will receive a £280 million loan from the European Investment Bank (EIB) to help support the research and development of new aero engines.

The seven-year loan is one of the largest ever agreed between the EIB and a British company. Over the past decade, the EIB has already provided £723m worth of investment to Rolls-Royce.

During a visit to Rolls-Royce's plant in Derby, Jonathan Taylor, European Investment Bank Vice President, said: “The European Investment Bank is committed to supporting long-term investment in research and development across Europe and we are pleased to have helped strengthen manufacturing by Rolls-Royce in Derby over many years. Investment to help develop new engines builds on the unique strengths of Rolls-Royce and will help to ensure that cutting edge skills and engineering techniques build better and more efficient engines for the global airline market."

The funds to help in the research and development of a higher thrust of the Trent XWB engine. The current version of the engine is used in the Airbus A350 XWB airliner. But the larger version of the aircraft will be powered by the new engine.