IBM allots $3 billion for IT initiatives in Europe, Asia Pacific

MANILA, Philippines – IBM has announced that it is making up to $3 billion available to finance information technology (IT) initiatives in key economic stimulus projects in Europe and Asia-Pacific, including the Philippines, through IBM Global Financing, IBM’s lending and leasing business segment.

The announcement follows the availability of up to $2 billion announced by IBM on April 30 to help jumpstart US economic stimulus programs.

“There is a great connectivity among nations. While the various stimulus packages in different countries were designed to keep their own economies on track, it is as joined economies that we can rise from this global downturn together. In this context, IBM Global Financing is extending its stimulus financing program to the Philippines and various countries in Europe and Asia-Pacific to help global recovery,” IBM Philippines country general manager James Velasquez said.

Specifically, IBM will make available up to $2 billion in financing in Europe and up to approximately $1 billion in the Asia-Pacific region. IBM Global Financing also will extend its North American coverage to include financing for smart technology projects in Canada.

The financing will help organizations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century.

IBM said it has been helping enterprises and local governments in these areas build their infrastructures to spur growth in key IT projects such as Smart Grid, Health Information Technology, and Smart Transportation. The financing will be targeted to companies and organizations in countries with government funding committed to help economic stimulus, create new industries and enable infrastructure improvements.

The bulk of the $5 billion will be for financing (where available based on local financing practices) for smart technology projects for credit-qualified clients. The financing could be in the form of low rates and flexible financing options, deferred payment plans, enterprise financing facilities that offer structured lines of credit; and specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project.

“The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like SmartGrid, will be substantially delayed. This is a bold move by IBM to help accelerate stimulus benefits into the current time frame,” according to David Mitchell, senior vice president of UK-based IT Research, Ovum.