Severn Trent offers drinking water and waste water treatment for over 7.7 million people and 4.3 million homes and businesses across the Midlands and mid-Wales.
The company is planning to invest £6.2bn into the business by 2020, of which about £3.3bn will be spent in schemes like the £255m Birmingham resilience project.
The £530m loan is claimed to be one of the largest on record between EIB and any UK water firm. Since 1978, the bank has offered over £2bn for investment in water infrastructure across the Severn Trent region.
EIB vice president Jonathan Taylor said: "The European Investment Bank is committed to supporting long-term investment in water infrastructure across the UK and around the world.
"The new support represents one of the largest ever loans by the EIB for investment in the UK water sector and is testimony to the hard work done by Severn Trent in recent years and their ambitious plans for the future."
The company was established in 1974 as the Severn Trent Water Authority to supply water and treat sewage for about 8 million people living in the Midlands of England and also several regions of Wales.
Image: Cleaning water at Minworth. Photo: courtesy of Severn Trent Water.
