European Investment Bank

the European Union's development bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions projects that achieve the policy aims of the Euro

Categories

Financial and Banking  
Summary

The European Investment Bank (EIB) is the European Union's financing institution and the largest multilateral borrower and lender globally. It was established in 1958 with the primary objective of promoting economic development and cohesion within the EU member states. The EIB operates independently but under the framework and guidance of EU policies.

The EIB provides financing and expertise for a wide range of projects that contribute to the EU's economic, social, and environmental objectives. Its activities span various sectors, including infrastructure development, innovation and competitiveness, climate action, sustainable energy, and support for small and medium-sized enterprises (SMEs). The EIB's funding supports projects that have a positive impact on job creation, regional development, and the improvement of living standards.

As a long-term lending institution, the EIB offers loans and financial instruments tailored to the needs of its clients. It provides favorable financing terms, long repayment periods, and flexible repayment structures. The EIB's financing is directed towards public entities, private companies, financial intermediaries, and public-private partnerships.

Beyond financing, the EIB offers advisory services, technical assistance, and risk-sharing instruments to support project preparation, implementation, and monitoring. It aims to ensure the successful delivery of projects by providing expertise, promoting best practices, and addressing potential risks and challenges.

The EIB plays a significant role in mobilizing private sector investments through its ability to leverage its own resources. It attracts private investors by sharing risks, offering guarantees, and issuing project bonds in capital markets. This collaboration between public and private sectors enhances the impact and effectiveness of investments and contributes to sustainable development.

In addition to its activities within the EU, the EIB also operates outside the EU through its external lending mandate. It provides financing and technical assistance to support development projects in countries neighboring the EU, as well as in regions experiencing socio-economic challenges worldwide.


History

The European Investment Bank (EIB) was established in 1958 under the Treaty of Rome, which created the European Economic Community (EEC), the precursor to the European Union (EU). The EIB was founded as a public financial institution with the goal of supporting the development and integration of the European economies.

Initially, the EIB focused on providing long-term loans for infrastructure projects, such as transportation, energy, and telecommunications, to promote economic growth and cohesion within the EU. Its operations expanded over the years to encompass various sectors, including education, healthcare, research and development, environmental protection, and support for SMEs.

In the early years, the EIB faced challenges in defining its role and establishing its credibility. However, it gradually gained recognition and became an important source of financing for European projects. Its lending activities helped support the modernization of infrastructure, stimulate investment, and create employment opportunities across member states.

Throughout its history, the EIB has adapted to changing economic and political circumstances. It played a significant role in supporting the EU's enlargement process, providing financial assistance to countries that joined the EU in successive waves. It also responded to emerging challenges, such as the need for sustainable development and climate action, by integrating environmental and social considerations into its financing criteria.

In the 2000s, the EIB's role expanded further as it took on new responsibilities beyond the EU borders. It began supporting development projects in countries neighboring the EU and played a role in promoting stability and economic cooperation in those regions.

The financial crisis of 2008 and the subsequent Eurozone crisis put the EIB in the spotlight as it assumed a vital role in providing counter-cyclical financing and supporting countries in distress. It implemented initiatives to stimulate investment, foster entrepreneurship, and mitigate the impact of the crises on the European economy.

In recent years, the EIB has taken steps to align its activities with EU policy objectives. It has emphasized the importance of sustainable and inclusive growth by promoting investments in renewable energy, energy efficiency, climate adaptation, and social infrastructure. It has also increased its support for SMEs, recognizing their vital role in job creation and innovation.

The EIB continues to evolve and adapt to new challenges and priorities. It operates as a financially self-sustaining institution, raising funds on international capital markets to finance its lending activities. Its activities are guided by the EU's strategic goals, including the transition to a carbon-neutral economy, digital transformation, regional development, and economic resilience.

As the EU's financing institution, the EIB has played a crucial role in supporting the development and integration of European economies throughout its history. Its lending and advisory activities have contributed to economic growth, infrastructure development, job creation, and the achievement of EU policy objectives.


Mission

The mission of the European Investment Bank (EIB) is to support the sustainable development and economic growth of the European Union (EU). As the EU's financing institution, the EIB aims to promote cohesion, stability, and prosperity within the member states by providing long-term financing, expertise, and advisory services for investment projects.

The EIB's mission is guided by several key objectives:

Investment Promotion: The EIB seeks to foster investment by providing financing and support for projects that contribute to the development and modernization of infrastructure, innovation, education, healthcare, and other sectors. By promoting investment, the EIB aims to stimulate economic growth, create jobs, and enhance the competitiveness of the EU economy.

Economic and Social Cohesion: The EIB is committed to reducing disparities and promoting economic and social cohesion among EU member states and regions. It directs its financial resources toward projects that address regional imbalances, support disadvantaged areas, and contribute to balanced and sustainable development across the EU.

Sustainability and Climate Action: The EIB places a strong emphasis on sustainability and climate action. It supports projects that promote environmental protection, energy efficiency, renewable energy, and the transition to a low-carbon economy. The EIB's financing aligns with the EU's climate objectives, including the Paris Agreement and the European Green Deal, to address climate change and promote a sustainable future.

Innovation and Competitiveness: The EIB aims to foster innovation and improve the competitiveness of EU businesses and industries. It supports research and development initiatives, digital transformation, and the growth of small and medium-sized enterprises (SMEs). By providing financing and advisory services, the EIB encourages entrepreneurship, innovation, and the adoption of new technologies.

European and International Partnerships: The EIB collaborates with various stakeholders, including EU institutions, national authorities, international organizations, and the private sector. It actively seeks partnerships to leverage resources, share expertise, and maximize the impact of its activities. The EIB also extends its support beyond the EU, providing financing and technical assistance for development projects in neighboring countries and regions.


Vision

The mission of the European Investment Bank (EIB) is to support the sustainable development and economic growth of the European Union (EU). As the EU's financing institution, the EIB aims to promote cohesion, stability, and prosperity within the member states by providing long-term financing, expertise, and advisory services for investment projects.

The EIB's mission is guided by several key objectives:

Investment Promotion: The EIB seeks to foster investment by providing financing and support for projects that contribute to the development and modernization of infrastructure, innovation, education, healthcare, and other sectors. By promoting investment, the EIB aims to stimulate economic growth, create jobs, and enhance the competitiveness of the EU economy.

Economic and Social Cohesion: The EIB is committed to reducing disparities and promoting economic and social cohesion among EU member states and regions. It directs its financial resources toward projects that address regional imbalances, support disadvantaged areas, and contribute to balanced and sustainable development across the EU.

Sustainability and Climate Action: The EIB places a strong emphasis on sustainability and climate action. It supports projects that promote environmental protection, energy efficiency, renewable energy, and the transition to a low-carbon economy. The EIB's financing aligns with the EU's climate objectives, including the Paris Agreement and the European Green Deal, to address climate change and promote a sustainable future.

Innovation and Competitiveness: The EIB aims to foster innovation and improve the competitiveness of EU businesses and industries. It supports research and development initiatives, digital transformation, and the growth of small and medium-sized enterprises (SMEs). By providing financing and advisory services, the EIB encourages entrepreneurship, innovation, and the adoption of new technologies.

European and International Partnerships: The EIB collaborates with various stakeholders, including EU institutions, national authorities, international organizations, and the private sector. It actively seeks partnerships to leverage resources, share expertise, and maximize the impact of its activities. The EIB also extends its support beyond the EU, providing financing and technical assistance for development projects in neighboring countries and regions.


Key Team

Marjut Santoni (Vice-President and Head of the Inspectorate General)

Bertrand de Mazières (Vice-President and Chief Financial Officer)

Thomas Östros (Vice-President, responsible for climate action and environmental sustainability)

Kris Peeters (Vice-President, responsible for operations in Belgium, the Netherlands, and Luxembourg)

Bruno Wenn (Director-General for Operations - European Union Countries)


Products and Services

The European Investment Bank (EIB) offers a diverse range of products and services to support investment and development projects within the European Union (EU) and beyond. Here are some of its main offerings:

Financing: The EIB provides long-term financing for a wide range of projects. It offers loans to public and private entities, including national and local governments, public institutions, corporates, and small and medium-sized enterprises (SMEs). The EIB's financing terms are typically favorable, with long repayment periods and flexible repayment structures, to accommodate the specific needs of borrowers.

Advisory Services: The EIB offers advisory services to assist project promoters in various stages of project development. This includes providing technical and financial expertise, conducting feasibility studies, and offering guidance on project structuring and implementation. The advisory services help project promoters improve project quality, enhance financial sustainability, and address specific challenges to increase the success rate of projects.

Risk Sharing and Guarantees: The EIB provides risk-sharing instruments and guarantees to enhance access to financing for projects. These instruments help mitigate risks for financial intermediaries, such as banks and other lenders, which encourages them to provide loans to project promoters. By sharing risks with financial partners, the EIB supports the mobilization of additional funding for investment projects.

Capital Market Operations: The EIB actively participates in capital markets to raise funds for its lending activities. It issues bonds and other debt instruments to access funding from institutional investors, including banks, pension funds, and asset managers. The EIB's capital market operations allow it to diversify its funding sources and attract a broader investor base, thereby increasing the availability of financing for its projects.

Technical Assistance and Capacity Building: The EIB provides technical assistance and capacity-building support to project promoters, particularly in less-developed regions or for projects with complex requirements. This includes offering training programs, knowledge sharing, and best practice guidance. The technical assistance helps project promoters enhance their project preparation, implementation, and monitoring capabilities, improving the overall quality and impact of the projects.

Mandate Outside the EU: In addition to its activities within the EU, the EIB operates outside its borders through its external lending mandate. It provides financing and technical assistance for development projects in countries neighboring the EU, as well as in regions facing socio-economic challenges worldwide. This allows the EIB to support global development efforts and promote economic cooperation beyond the EU.

The EIB's products and services are designed to support a wide range of sectors, including infrastructure development, energy and climate action, innovation and digitalization, education and healthcare, urban development, and private sector development. Through its offerings, the EIB aims to facilitate investment, foster economic growth, promote sustainability, and contribute to the achievement of EU policy objectives.


References
European Investment Bank
Leadership team

Werner Hoyer (President)

Ambroise Fayolle (Vice President)

Industries

Financial and Banking

Products/ Services
Financing, Advisory Services, Risk Sharing and Guarantees, Project Bonds and Capital Market Operations
Number of Employees
1,000 - 20,000
Headquarters
98-100, boulevard Konrad Adenauer, L-2950, Luxembourg, Luxembourg
Established
1958
Company Registration
LEI 5493006YXS1U5GIHE750
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Thu Apr 25 2024
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