EIB and IKB Partner to Launch €400 Million Sustainable Financing Initiative for Mid-Sized Companies in Germany

EIB and IKB Partner to Launch €400 Million Sustainable Financing Initiative for Mid-Sized Companies in Germany

(IN BRIEF) The European Investment Bank (EIB) and IKB Deutsche Industriebank AG (IKB) have launched a strategic partnership aimed at enhancing access to sustainable financing for mid-cap companies in Germany. This initiative includes a €400 million loan portfolio, where the EIB provides €200 million in guarantees. The program is designed for firms with up to 3,000 employees, facilitating their transition to more sustainable business practices. One-third of the funds will support projects focused on improving energy efficiency and reducing carbon emissions. The collaboration is part of an EU-linked risk-sharing program to help mitigate barriers caused by current economic uncertainties. Both organizations emphasize the importance of this initiative for promoting economic growth, job security, and environmental sustainability in the region.

(PRESS RELEASE) LUXEMBOURG, 9-Oct-2024 — /EuropaWire/ — The European Investment Bank (EIB) and IKB Deutsche Industriebank AG (IKB) have unveiled a strategic partnership aimed at facilitating sustainable financing for mid-cap companies in Germany. This collaboration introduces a substantial loan portfolio of €400 million, designed specifically for firms with up to 3,000 employees to support their transition towards environmentally sustainable business practices.

Under this initiative, the EIB will underwrite IKB’s loan portfolio with guarantees amounting to €200 million, effectively enabling mid-sized enterprises to secure favorable financing options. This partnership not only eases access to funds for sustainable investments but also contributes to long-term economic growth and job preservation.

One-third of the loans allocated through this program will specifically fund projects focused on enhancing energy efficiency, reducing carbon emissions, and decreasing air pollution, thus promoting a comprehensive green transition within the market. These efforts are essential for enabling companies to engage effectively in wholesale markets.

The EIB’s guarantees are part of a broader EU-linked risk-sharing program designed to mitigate financial access barriers that have arisen from current economic uncertainties, including inflation, supply chain disruptions, and energy insecurity.

“Mid-cap companies are vital to driving growth within our economy and are crucial to facilitating the green and digital transitions that will enhance innovation and competitiveness in Germany,” stated EIB Vice-President Nicola Beer. “By partnering with IKB, we are providing the long-term financing necessary for these enterprises to strategize effectively for the future. This initiative empowers companies to maintain their innovative edge, strengthen their supply chains, and safeguard jobs, ultimately bolstering Germany and Europe as attractive business locations.”

IKB expresses enthusiasm about this close collaboration with the EIB, which solidifies its role as a key sustainable financial service provider for medium-sized enterprises in Germany. Of the total guarantee framework, 30% is dedicated to supporting initiatives that improve carbon footprints and enhance environmental sustainability.

“This agreement reinforces IKB’s commitment to providing transformative financing solutions for mid-sized companies,” remarked IKB CEO Michael Wiedmann. “We are excited to broaden our financing capabilities for sustainability projects, making these options more appealing to our clients.”

IKB is dedicated to significantly contributing to the transition to a green economy through its diverse range of sustainable financial products, including syndicated ESG loans, project financing, long-term ESG loans, and advisory services. The bank aims to mobilize between €3-4 billion in sustainable new business volume by the end of 2025, in alignment with its Sustainable Finance Framework. In the 2023 financial year alone, IKB successfully mobilized approximately €1.7 billion in sustainable new business.

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.

IKB Deutsche Industriebank AG, headquartered in Düsseldorf, focuses on high-end German mid-caps – mainly firms with an annual turnover of more than €100 million. Since it was founded in 1924, IKB has specialised as an independent private bank, primarily in long-term financing for companies and projects. In its customer business, IKB focuses on structured financing and credit advisory services. The bank also offers financing solutions that can be used independently of customer balance sheets, including assistance for companies on the capital market – for example, in issuing promissory notes or bonds. IKB is also a specialist offering customers access to public funding programmes. It employs around 600 people at six locations, with a sales network that covers all regions of Germany.

Media Contact:

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

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank