European Investment Bank (EIB)

The European Investment Bank (EIB) is the lending arm of the European Union and the world's largest multilateral financial institution. Established in 1958, it is owned by the 27 EU member states and operates globally, with a focus on climate action, environmental sustainability, innovation, infrastructure, and support for small and medium-sized enterprises. The EIB provides loans, guarantees, equity investments, and advisory services to both public and private sector entities. It primarily finances projects within the EU, but also supports EU development and cooperation policies worldwide. The bank raises funds by issuing bonds on international capital markets, benefiting from its AAA credit rating. Typical EIB loans start at €25 million for direct financing, though smaller amounts may be considered in some cases. The bank usually finances up to 50% of a project's total cost, but can go up to 75% for energy efficiency investments. Key criteria for funding include alignment with EU objectives, economic and technical viability, and environmental sustainability. Recent projects financed by the EIB include support for COVID-19 recovery efforts, investments in renewable energy, and funding for innovative startups. The bank has committed to investing €1 trillion in climate-related projects by 2030 and has pledged to align all its financing activities with the Paris Agreement by the end of 2020.