The European Investment Bank (EIB) is the lending arm of the European Union and the world's largest multilateral lender. Founded in 1958, it is owned by EU member states and supports projects that further EU objectives both within and outside the Union. The EIB focuses on four main areas: innovation and skills, small businesses, climate and environment, and infrastructure. It also prioritizes cohesion and development. The bank provides loans, guarantees, equity investments, and advisory services. With a capital base of €248 billion, the EIB signed loans totaling €65 billion in 2021, supporting 748 projects. Typical project financing ranges from €25 million to €100 million, with the bank generally funding up to 50% of a project's total cost. To receive funding, projects must contribute to EU policy objectives, be economically, financially, and technically sound, and meet environmental and social standards. Recent projects include support for COVID-19 recovery, renewable energy initiatives, and SME financing. The EIB Group, which includes the European Investment Fund, plays a crucial role in implementing EU initiatives such as InvestEU, which aims to mobilize €372 billion in additional investment between 2021 and 2027. The bank is also committed to supporting climate action and environmental sustainability projects worldwide.
The European Investment Bank (EIB) could significantly support the development of the European Housing Cooperative (EHC) through various financial instruments and programs. The EIB's focus on affordable and sustainable housing aligns well with EHC's goals. The EIB's Social and Affordable Housing program is particularly relevant, offering loans for construction and renovation of energy-efficient housing. The bank typically covers up to 50% of a project's total cost, with loans starting at €25 million. For energy efficiency investments, it can finance up to 75% of the capital cost. The EIB Group's advisory services could also assist EHC in project preparation and execution. The InvestEU program, which the EIB helps implement, could provide additional support through guarantees and advisory services. Similar projects that have received EIB support include GEWOBA AG in Bremen, which received €125 million for affordable and climate-friendly housing, and the CEE Student Housing Fund, backed by €50 million from the European Investment Fund (part of the EIB Group) for student housing in Central-Eastern Europe. To access EIB support, EHC could explore partnerships with national promotional banks or consider forming a larger consortium to meet the minimum loan thresholds. The EIB's emphasis on energy efficiency and social cohesion in housing projects makes it a promising potential partner for EHC's pan-European cooperative housing initiative.