European Investment Bank
The European Investment Bank (EIB) is the long-term lending arm of the European Union, providing loans for projects of strategic importance to Europe. It is owned by the members of the EU, comprises of 28 countries and is based in Luxembourg.
Established in 1958, by the Treaty of Rome which also established the European Economic Community, the European Investment Bank has since played a significant role in helping to finance major projects throughout Europe. From airports and motorways, to water, waste and energy supply systems, to investment in research technology and sustainable energy, the EIB has had, and continues to have, a major influence on the development of social and economic infrastructure in Europe.
For the 2017 financial year, the EIB lent € 75 billion, which was made up of €60 billon of loans and an additional €15 billion in guarantees, to finance projects in over 100 countries worldwide. The bulk of the EIB’s funds were directed towards the EU member states (79%), followed by 12% on Africa and 8% to the Middle East and Latin America.
Projects financed range from the construction of new roads, the refurbishment of existing ones, the modernisation of energy networks, the development of business and technology, research and development, investments in small and medium-sized enterprises, to eliminating poverty, building better hospitals and schools.
The EIB’s funds come from a combination of borrowing from financial markets, capital contributions from its member countries, and various specific funds, including the European Fund for Strategic Investments (EFSI), the Connecting Europe Facility (CEF) and the European Union Solidarity Fund.
The EIB has the highest-possible credit rating, AAA, and is often able to lend money at rates lower than the market would offer, making it an attractive source of finance for borrowers. It has often helped bridge financing needs over longer periods of time where a commercial loan may not be available and can also provide a mix of loans and guarantees that are not available in the market.
The European Investment Bank has also been more than just a financial institution and has formulated several publications on public policies related to global issues, such as climate change, refugees and migration, and youth employment.
It has also been actively involved in philanthropy and has developed several cooperation projects to aid countries in the immediate region, with a focus on education, energy, healthcare and infrastructure.
The EIB’s presence in Europe and the wider world has been a source of development for Europe and for other countries, helping foster economic growth, social progress and environmental sustainability.
The European Investment Bank has gone from strength to strength since 1959 and its ability to fund projects of strategic importance to Europe has been an invaluable part of the European Union’s growth and development.
