EIB and Deutsche Leasing Partner to Boost Green Transformation of Small Businesses with €200 Million Financing

EIB and Deutsche Leasing Partner to Boost Green Transformation of Small Businesses with €200 Million Financing

(IN BRIEF) The European Investment Bank (EIB) and Deutsche Leasing have signed the second tranche of a €560 million project to support the green transformation of small and medium-sized enterprises (SMEs) and mid-caps in Germany and Eastern Europe. With €200 million in EIB financing, the initiative will focus on climate and environmental investments, including energy-efficient technologies and low-carbon mobility. Deutsche Leasing will provide favorable leases to SMEs and mid-caps to help them adopt sustainable practices, supporting around 570 businesses and 47,300 jobs. The partnership aims to promote long-term economic growth and accelerate the shift toward a green economy.

(PRESS RELEASE) LUXEMBOURG, 22-Oct-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Deutsche Leasing have signed the second tranche of their partnership aimed at supporting the green transition of small and medium-sized enterprises (SMEs) and mid-caps across Germany and Eastern Europe. This project, with a total cost of €560 million, has secured €200 million in EIB financing, following the initial tranche of €50 million signed in February 2024. The collaboration focuses on promoting sustainable business practices, with 30% of the financing dedicated to climate and environmental initiatives.

Under this programme, Deutsche Leasing will provide leases at favorable terms to SMEs (those with fewer than 250 employees) and mid-caps (with up to 3,000 employees), helping these companies invest in long-term projects that focus on energy efficiency, low-carbon mobility, and other environmentally beneficial technologies. The goal is to foster the green transformation by enabling businesses to adopt energy-efficient machinery, industrial equipment, and climate adaptation technologies, which will be particularly beneficial in industries like agriculture and manufacturing.

The EIB’s AAA credit rating allows it to offer competitive financing conditions, which are passed on to the beneficiaries. This initiative is expected to benefit around 570 small and medium-sized businesses, supporting approximately 47,300 jobs in the process. By improving access to long-term financing, the collaboration aims to strengthen economic growth and job security while accelerating the transition to a greener economy.

Nicola Beer, EIB Vice-President, highlighted the importance of supporting SMEs and mid-caps as central pillars of the European economy. She emphasized the EIB’s role in providing stable, long-term financing for innovative projects that drive both green and digital transitions, ultimately boosting European competitiveness. Deutsche Leasing will also play a pivotal role in advising businesses and public entities on sustainable transformation, positioning itself as a key player in advancing the circular economy.

This latest operation continues the strong cooperation between EIB and Deutsche Leasing, following earlier agreements in 2020 and 2023 that focused on synthetic securitisations and guarantees aimed at supporting small businesses in Romania, a member of the Deutsche Leasing Group.

Background information

The European Investment Bank is the long-term lending institution of the European Union. It finances sound investments that contribute to EU policy objectives. EIB projects strengthen competitiveness, sustainable development, and social and territorial cohesion. They promote innovation and accelerate the transition to climate neutrality. The EIB Group – which also includes the European Investment Fund – signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

The Deutsche Leasing Group is the solution-oriented asset finance partner for the German SME sector. The company provides support for investment projects in Germany and other countries and offers a wide range of financing solutions (asset finance) and supplementary services (asset services) for current and non-current assets. The company helps its customers to finance change and innovation when it comes to the key transformative issues of our time – in the areas of decarbonisation, digitalisation and forward-looking infrastructure. As a central and international group partner, the Deutsche Leasing Group is Sparkassen-Finanzgruppe’s centre of excellence for leasing, factoring as well as other alternative forms of financing.

Media Contact:

Donata Riedel
d.riedel@eib.org
+352 4379 – 86192

Press Office

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SOURCE: European Investment Bank