The European Investment Bank (EIB) is a multilateral financial institution established in 1958 and owned by the member states of the European Union (EU). It operates independently but is closely linked to the EU institutions. The primary objective of the EIB is to promote EU objectives by providing long-term financing for investment projects within Europe and occasionally in other regions.
The EIB funds a wide range of projects, including infrastructure, transportation, energy, environmental sustainability, innovation, and small and medium-sized enterprises (SMEs). It lends to both public and private entities, offering favorable interest rates and longer repayment periods compared to commercial banks. The bank also provides expertise and technical assistance to support the implementation of projects.
As a policy-driven institution, the EIB contributes to EU economic and social development, cohesion, and territorial integration. It supports projects that align with EU policies, such as climate action, digital transformation, social and economic cohesion, and sustainable development. The EIB plays a crucial role in implementing the EU's strategic priorities and policies, especially the Green Deal and the European Recovery and Resilience Facility.
The EIB raises funds through borrowing on capital markets and then lends those funds at favorable conditions to finance projects that contribute to EU objectives. Its financial strength and credibility allow it to offer competitive financing terms, attract private investments, and crowd-in additional funding sources. The EIB's loans and financial instruments assist in stimulating economic growth, creating jobs, enhancing competitiveness, and contributing to the sustainable development of Europe.
