How does the European Bank for Investments work? A short guide
The European Investment Bank (EIB) was founded in 1958 with the Treaty of Rome to help economies grow, create new job opportunities, sustain initiatives to mitigate climate change and promote equality across the European Union and abroad. The EIB supports also Europe’s post-pandemic economic recovery by implementing the European Fund for Strategic Investments, and directly funds thousands of projects in over 160 countries. Here is a short guide to understanding how EIB works and which are the opportunities to be financed.
How does EIB work?
The Luxembourg-based bank borrows on capital markets and makes loans on favourable terms for projects that support the before-mentioned European Union's general objectives. About 90% of the loans are provided in the European Union.
The EIB provides three main types of products and services:
- Loans (90% of its total financial commitments). The bank lends to clients of all sizes, often helping to attract other investors;
- "Blending": clients can combine EIB financing with further i