OXFORD University has secured a £200m cash injection from European Investment Bank (EIB) chiefs for the expansion of its sites across the city.

The money has been provided as a 30-year loan – the largest ever issued by the bank to a university – and last night the university said it would be ploughed into sites in the city centre, Jericho and Headington.

Over the next decade it plans to pump billions into teaching and research facilities, with funding sourced from grants, donations and loans.

EIB vice president Jonathan Taylor said: “The new loan will strengthen a broad range of disciplines here in Oxford and ensure that the university continues to be at the forefront of global research.”

University vice-chancellor Professor Andrew Hamilton said it would allow the city’s scientists to “tackle the great research challenges of the 21st Century”.

The cash will fund a mix of existing projects and future ones, including new buildings at the Radcliffe Observatory Quarter, in Jericho, and the Old Road Campus, on the former Park Hospital site in Headington.

This will include new laboratories in the South Parks Road science area, the Big Data and Target Discovery institutes at the new Li Ka Shing Centre for Health Information and Discovery and a new home for the university’s department of primary health care sciences, in the Grade II-listed former Radcliffe Infirmary.

Pro vice-chancellor for planning Professor William James said the loan would also fund a new biosciences building to replace the infamous Hans Krebs Tower.

Prof James added: “This loan has closed the finance gap to get these schemes off the ground and the EIB has proved a very good lender to work with.”

Oxford City Council leader Bob Price said: “This is a fantastic vote of confidence in the university and its world class research.”