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Deutsche Bank and EIB collaborate to fund sustainable transformation for mid-sized companies

EditorAmbhini Aishwarya
Published 09/13/2023, 04:53 AM
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Deutsche Bank and the European Investment Bank (EIB) have initiated a new cooperation to support mid-sized companies in their sustainable transformation efforts. As of Wednesday, the partnership will provide a total of 400 million euros in long-term loans to companies with between 250 and 3,000 employees in Germany and the European Union.

The loan portfolio, at least half of which is earmarked for projects that boost renewable energy production, aims to fund investments in renewable energy and energy efficiency. It also supports other projects meeting the sustainability criteria of the EU taxonomy.

The EIB will provide guarantees covering up to 50% of the loan sum, benefiting borrowers in full. These guarantees are part of an EU-wide linked risk-sharing (LRS) program aimed at reducing access barriers to finance caused by current economic uncertainties, such as supply chain bottlenecks, inflation, rising interest rates, and insecure energy supply.

Hauke Burkhardt, Global Head of Corporate Bank Lending at Deutsche Bank, emphasized the high need for transformational financing due to the energy transition. He said, "Sustaining this significant financing volume requires strong partnerships - especially between promotional and commercial banks. The LRS programme serves just this purpose. The new partnership between the EIB and Deutsche Bank provides corporate clients with reliable support for their transformation projects."

EIB Vice-President Ambroise Fayolle, who oversees bank financing in Germany, expressed his pleasure at working with Deutsche Bank. He noted that together they are promoting the expansion of renewable energy and greater energy efficiency, accelerating the shift away from fossil energy in Germany.

The EIB is the long-term lending institution of the European Union, owned by its Member States. It focuses on financing sound investments that further EU policy goals. Deutsche Bank offers a wide range of financial services and serves private clients, SMEs, corporations, the public sector, and institutional investors. It is the leading bank in Germany with strong European roots and a global network.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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