EIB and Santander Partner to Unlock €8 Billion for Europe’s Wind Energy Industry

EIB and Santander Partner to Unlock €8 Billion for Europe’s Wind Energy Industry

(IN BRIEF) The European Investment Bank (EIB) and Santander have signed a €500 million counter-guarantee agreement, allowing Santander to create a portfolio of guarantees worth up to €1 billion. This agreement is expected to unlock €8 billion in investments to support wind energy manufacturing companies across Europe. The guarantees will help these companies by providing advance payments and performance guarantees for new wind projects. This initiative is part of the EIB’s €5 billion wind power package aimed at boosting Europe’s energy transition and wind energy generation capacity. The project is backed by InvestEU and aims to enhance industrial competitiveness and energy security in the EU.

(PRESS RELEASE) LUXEMBOURG, 12-Feb-2025 — /EuropaWire/ — The European Investment Bank (EIB) has entered into a €500 million counter-guarantee agreement with Santander to help unlock up to €8 billion in investment aimed at supporting the wind energy manufacturing sector across Europe. This agreement allows Santander to create a portfolio of bank guarantees worth up to €1 billion, which will provide much-needed financial backing to companies involved in the production of wind energy and grid interconnection equipment. The initiative is expected to enhance Europe’s renewable energy capacity and play a significant role in accelerating the energy transition.

The counter-guarantee scheme will provide crucial support to manufacturers by offering advance payments and performance guarantees when they undertake new wind projects. The portfolio will also facilitate early payments to suppliers involved in the wind value chain, including manufacturers of turbines, grid connection infrastructure, cables, and transformer stations. By leveraging additional funding from other investors, the EIB-backed guarantees are set to stimulate production and drive further investment in the green energy sector.

This operation is a key part of the EIB’s €5 billion wind power package, which was launched in 2023. Designed to support Europe’s wind power sector, the package is intended to increase wind energy generation capacity by 32GW. The scheme is also aligned with the European Commission’s European Wind Power Package, which aims to fast-track the transition to net zero and promote industrial innovation within Europe.

Gemma Feliciani, Director of Financial Institutions at the EIB, emphasized the importance of these de-risking instruments in supporting the wind energy industry. “To fully realize the potential of wind energy in the EU’s renewable energy goals, these instruments will help manufacturers navigate the challenges of supply chain disruptions, high costs, and intense international competition,” Feliciani said. “This new framework, part of the EIB wind package, will accelerate Europe’s energy transition and strengthen its industrial competitiveness.”

Santander’s Global Trade Finance team, represented by Ricardo Gamazo, echoed the significance of the deal, noting that it has been well-received by clients in the wind equipment industry who face a growing backlog of orders to meet the demand for clean energy. “This agreement is an important step in securing credit lines and bolstering energy security across Europe in a sustainable way,” Gamazo stated.

The partnership between EIB and Santander promises to provide much-needed financial support to the wind energy sector, helping to accelerate the transition to a greener, more sustainable future for Europe.

Background information

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances investments that contribute towards EU policy goals. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

About Banco Santander

Banco Santander (SAN SM) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. At the end of 2024, Banco Santander had €1.3 trillion in total funds, 173 million customers, 8,000 branches and 207,000 employees.

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SOURCE: European Investment Bank