The European Investment Bank (EIB) has thrown its weight behind An Post’s digital transformaion strategy with a €40 million loan.
Like other postal groups, An Post has been forced to restructure its business as consumers migrate from traditional mail to digital communications, known in the industry as "e-substitution", and more sustainable business practices.
The semi-state said more than €82 million of new investment over the next three years would be backed by a €40 billion loan package from the EIB.
Owned by EU member states, the Luxembourg-based bank is operated on a non-profit basis, ostensibly to provide favourable loans for sustainable investment projects.
An Post chief executive David McRedmond said: “This ground-breaking contract demonstrates confidence in An Post’s transformation and digital strategy for the Irish economy, business of all sizes and local communities”.
“ It enables us move faster and be smarter in changing from the old world of letters and cash to the new digital world of ecommerce and financial services,” he said.
Mr McRedmond said the strategy being implemented at An Post had brought a turnaround from losses of €12.4 million in 2016 to profit of €41.2 million in 2018.
“ The transformation is continuing. We will achieve a similar or better performance in 2019, exceeding our targets for the year and delivering continued growth in ecommerce fulfilment and financial services. Sustainable plans are in place for 2020,” he said.
