Dec. 18 (Bloomberg) — Xylem Inc., the ITT Corp. spinoff whose pumps helped clean Hurricane Sandy floodwaters, said it entered into an off-balance sheet agreement for as much as 120 million euros ($158 million) to finance research and development projects in Europe.

The agreement between the water company’s Luxembourg unit and the European Investment Bank is part of an initiative with the EIB and European Commission for R&D in the European Union. The funds will be available from 2013 to 2016 as loans to finance projects at Xylem facilities in the U.K., Germany, Italy, Austria, Sweden, Norway and Hungary, the company said in a filing. No agreement funds to date have been drawn, it said.

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To contact the editor responsible for this story: Randall Hackley at