EIB and Deutsche Bank Collaborate to Support Sustainable Transformation of Mid-Sized Companies

EIB and Deutsche Bank Collaborate to Support Sustainable Transformation of Mid-Sized Companies

(IN BRIEF) The European Investment Bank (EIB) and Deutsche Bank are partnering to provide long-term loans to mid-sized companies with 250 to 3,000 employees to facilitate their transition to more sustainable business models. The EIB will offer guarantees covering up to 50 percent of the loan amount. This collaboration will make 400 million euros available to such companies, with at least half of the loans allocated to projects that enhance renewable energy production. The initiative is part of an EU-wide linked risk-sharing (LRS) program aimed at reducing access barriers to finance amid economic uncertainties, such as supply chain disruptions and rising energy costs.

(PRESS RELEASE) LUXEMBOURG, 14-Sep-2023 — /EuropaWire/ — The European Investment Bank (EIB) and Deutsche Bank are entering a new cooperation to support mid-sized companies with their sustainable transformation ambitions. Firms with between 250 and 3,000 employees will be able to apply for long-term loans through Deutsche Bank to finance their transition to more sustainable business models. The EIB will provide guarantees covering up to 50 percent of the loan sum. The cooperation between EIB and Deutsche Bank will make it easier for mid-caps to access favourable financing conditions for their sustainable investments. The EIB guarantees will benefit the borrowers in full.

The cooperation will make a total of 400 million euros available to such companies, with at least half of the loans earmarked for financing projects that boost renewable energy production.

These guarantees are part of an EU-wide linked risk-sharing (LRS) programme, which uses risk-sharing to reduce some of the access barriers to finance caused by current economic uncertainties, such as supply chain bottlenecks, inflation, rising interest rates and insecure energy supply.

EIB Vice-President Ambroise Fayolle, who oversees bank financing in Germany, said, “We are pleased to be working with Deutsche Bank to support Germany’s real economy in its sustainable transformation, by providing medium-sized companies with long-term loans. Together, we are promoting the expansion of renewable energy and greater energy efficiency. This will accelerate the shift away from fossil energy in Germany.”

Hauke Burkhardt, Global Head of Corporate Bank Lending at Deutsche Bank, said, “The energy transition in particular entails a high need for transformational financing for many companies. Sustaining this significant financing volume requires strong partnerships – especially between promotional and commercial banks. The LRS programme serves just this purpose. The new partnership between the EIB and Deutsche Bank provides corporate clients with reliable support for their transformation projects.”

Background information

The European Investment Bank key priorities are climate and the environment, development, innovation and skills, SMEs, infrastructure and cohesion. It works closely with other EU institutions to foster European integration, promote the European Union’s development and support EU policies in more than 140 countries worldwide.

Deutsche Bank offers a wide range of financial services – from payment and credit transactions, to investment advice and asset management, to focused capital markets services. It serves private clients, SMEs, corporations, the public sector and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.

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Donata Riedel
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SOURCE: European Investment Bank