European Investment Bank

Overview

The European Investment Bank (EIB) is the European Union's investment bank, providing financing and expertise for sustainable investment projects. Established in 1958, the EIB is owned by the 27 EU member states and is the largest multilateral financial institution in the world. It focuses on areas such as climate, environment, small and medium-sized enterprises (SMEs), development, cohesion, and infrastructure. The EIB borrows money on capital markets and lends it on favorable terms to projects that support EU objectives, with about 90% of loans made within the EU. None of the money comes from the EU budget. The EIB provides three main types of products and services: lending, equity investments, and guarantees. It also offers venture debt financing under the European Growth Finance Facility, backed by the European Fund for Strategic Investments. The EIB works with a broad network of commercial banks, national promotional banks and institutions, leasing companies, venture capital and private equity funds, angel investors, and service providers, including in regions where access to finance is limited. Through intermediaries, the EIB finances micro-enterprises (0–9 employees), small enterprises (10–49 employees), medium-sized enterprises (50–249 employees), and mid-caps (250–3,000 employees). In 2019, the EIB provided €25.52 billion in loans and other services to 386,600 SMEs and mid-caps, which employ 4.4 million people. The EIB also focuses on economic, social, and territorial cohesion and solidarity within the member states of the European Union and outside the EU. It prioritizes projects addressing inequalities by providing jobs and education, public infrastructure and services, and a sustainable environment across the European Union. The EIB's annual target for cohesion financing is 30% of all new operations in the EU, Pre-Accession, and EFTA countries, which amounted to €16.13 billion in 2019. In 2023, the EIB Group invested €36.2 billion in cohesion-related initiatives. The EIB has played a large role in providing finance during crises, including the 2008 financial crisis and the COVID-19 pandemic. It has also been a main financier of climate action, with plans to invest €1 trillion in climate-related projects by 2030, including a just transition. As the EU's climate bank, the EIB committed in November 2019 to align its activities with the goals and principles of the Paris Agreement by the end of 2020. In November 2020, the EU member states approved the EIB Group Climate Bank Roadmap 2021–2025, which outlines its upcoming contributions to the European Green Deal and to sustainable development outside the EU. By the end of 2021, the EIB will stop financing all fossil fuel projects. The EIB contributes to the European Green Deal, which aims for Europe to become the first carbon-neutral continent by 2050. It finances projects that limit global warming to 1.5°C by the end of the decade, fight environmental degradation, stop biodiversity loss, and address inequalities caused by climate change.

Investment Focus

• Projects that support EU objectives
• Sustainable investment projects
• Climate action initiatives
• Infrastructure development
• SME support
• Development projects
• Cohesion and regional development
• Environmental sustainability
• Energy efficiency projects
• Renewable energy projects
• Affordable housing projects
• Transport infrastructure projects
• Telecommunications infrastructure projects
• Education and healthcare projects
• Research and innovation projects
• Agricultural development projects
• Urban development projects
• Social inclusion projects
• Cultural heritage preservation projects
• Tourism development projects

Portfolio Companies