European Investment Bank

The European Investment Bank (EIB) is the investment bank of the European Union, owned by its 27 member states. Established in 1958 under the Treaty of Rome, it is the largest multilateral financial institution globally, financing projects aligned with EU policies. The EIB provides loans, equity investments, and guarantees to support climate action, infrastructure, small and medium-sized enterprises (SMEs), and development.

The bank does not receive EU budget funding but raises money through capital markets by issuing bonds. It holds a triple-A credit rating from major agencies, ensuring access to low-cost financing. Its shareholders contribute capital based on their share of the EU’s gross domestic product.

The EIB is a key financier of green projects. In 2007, it issued the first green bond. By 2030, it aims to invest €1 trillion in climate-related projects. In 2019, it committed to ending fossil fuel financing by 2021.

The bank offers financial products such as long-term loans covering up to 50% of project costs, equity investments, and guarantees. The European Investment Fund (EIF), part of the EIB Group, supports SMEs through venture capital and loan guarantees. The EIB also provides advisory services and partnerships to blend loans with grants.

It operates in 140 countries, including EU neighbours, Africa, Asia, and Latin America, contributing to development aid. The EIB played a major role in financing projects during the 2008 financial crisis and the COVID-19 pandemic.
 

In 2025, the EIB plans to invest €95 billion in clean technology, AI, affordable housing, and climate action. It has also announced a €60 billion funding programme with projected bond redemptions of €62.8 billion.

The European Investment Bank (EIB) was established in 1958 under the Treaty of Rome, which created the European Economic Community (EEC). The purpose of the bank was to provide financing for infrastructure projects across member states to support economic development. Initially, its main focus was lending for large-scale infrastructure projects such as roads, railways, and energy networks.

In the 1960s, the EIB expanded its lending activities beyond the European Community. In 1962, it was authorised to finance projects outside the EEC, marking the beginning of its international role. It issued its first loan in partnership with the International Bank for Reconstruction and Development, financing industrial projects in Italy. By the end of the decade, the EIB introduced global loan facilities to support small and medium-sized enterprises (SMEs), providing them with access to financing through local intermediaries.

The 1970s brought changes due to economic challenges and the first enlargement of the European Community. The bank’s capital was increased following the accession of Denmark, Ireland, and the United Kingdom in 1973. In response to the oil crisis and recession, the EIB expanded its lending to industrial development and urban projects. The creation of the European Regional Development Fund in 1975 allowed the bank to support regional development and economic cohesion among member states.

During the 1980s, the EIB played a key role in assisting countries preparing to join the European Community. Greece became a member in 1981, followed by Spain and Portugal in 1986. The bank provided financial support to these countries for infrastructure projects. It also expanded its focus to urban transport and telecommunications. The fall of the Berlin Wall in 1989 led to further expansion, with the EIB financing projects in Central and Eastern Europe to assist the transition to market economies.

In the 1990s, the EIB extended its operations to the Baltic states and non-European regions such as Latin America and Asia. It played a role in financing projects in former Soviet states, including Poland, Romania, and Hungary. In 1994, the European Investment Fund (EIF) was established to support SMEs and venture capital investments. The introduction of the euro in 1999 further strengthened the bank’s role in European financial markets. The EIB conducted its first borrowing operation in euros in 1997, ahead of the official launch of the currency.

The 2000s saw significant growth in the bank’s activities. The EIB Group was formed in 2000, incorporating the European Investment Fund. The same year, the Cotonou Agreement expanded EIB lending to African, Caribbean, and Pacific countries. The bank increased its support for innovation and knowledge-based industries in line with the European Union’s Lisbon Strategy. Climate finance also became a priority, with the bank issuing the world’s first green bond in 2007. The global financial crisis of 2008 led to an increase in EIB lending to support economic recovery, particularly in infrastructure and SME financing.

In the 2010s, the EIB played a role in major EU initiatives. In 2014, the European Fund for Strategic Investments was launched, aiming to mobilise investments across Europe. In 2016, the Economic Resilience Initiative was introduced to support countries affected by migration challenges. The EIB also strengthened its role in climate action, committing to end fossil fuel financing by 2021. It increased its investments in renewable energy, energy efficiency, and sustainability projects.

During the COVID-19 pandemic, the EIB responded by creating the European Guarantee Fund in 2020, with a €25 billion fund to provide financial support to businesses. It also funded medical research, including a €100 million loan to BioNTech for vaccine development. In 2020, the bank announced the Climate Bank Roadmap, aligning its operations with the Paris Agreement and setting a target of €1 trillion in climate-related investments by 2030.

In 2024, Nadia Calviño became the President of the EIB. The bank continues to focus on clean technology, artificial intelligence, and infrastructure projects.

In 2025, the EIB plans to invest €95 billion in these sectors. It has also announced a funding programme of €60 billion, with projected bond redemptions of €62.8 billion. The bank remains a key financial institution supporting the European Union’s economic, environmental, and social goals.

The European Investment Bank (EIB) aims to support the economic growth and development of European Union member states by financing projects that align with EU policies. It provides funding for infrastructure, small and medium-sized enterprises (SMEs), climate action, and innovation. The EIB focuses on sustainable investment, helping regions that need financial support and ensuring projects contribute to long-term economic stability. The bank also operates outside the EU, supporting global development goals. By offering loans, equity investments, and guarantees, the EIB helps strengthen economies, create jobs, and improve living conditions while maintaining financial independence through bond issuance.

The European Investment Bank (EIB) envisions a future where sustainable investment drives economic progress across Europe and beyond. It aims to promote innovation, green finance, and digital transformation to support a low-carbon economy. The bank seeks to enhance infrastructure, create employment opportunities, and support businesses in achieving long-term growth. With a strong focus on climate action, the EIB plans to invest €1 trillion in climate-related projects by 2030. By maintaining financial stability and working with global partners, the EIB strives to be a key institution for economic resilience, social progress, and environmental sustainability in the European Union and worldwide.

The European Investment Bank (EIB) has received recognition for its contributions to finance, sustainability, and economic development. It is one of the world’s leading green finance institutions and was the first to issue a green bond in 2007. The EIB has been awarded for its role in climate action, innovation, and infrastructure financing. It holds a triple-A credit rating from Moody’s, Standard & Poor’s, and Fitch. The bank has also been acknowledged for supporting SMEs, renewable energy, and crisis recovery efforts. Its leadership and initiatives in sustainable finance continue to be recognised globally for their economic and environmental impact.

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.