Joint press release: Commission and EIB announce a more flexible guarantee of €5 billion to boost global investments
On the occasion of the 4th International Conference on Financing for Development, the European Commission and the European Investment Bank (EIB) announced today a new type of guarantee agreement that will provide up to €5 billion to de-risk investments and expand EIB operations outside the European Union (EU). Today’s guarantee has the potential to unlock up to €10 billion in funding for critical projects in clean energy, green infrastructure and access to finance for Small and Medium Enterprises (SMEs) in partner countries.
This new guarantee is designed to support an increased number of companies – companies with a state participation or public organisations – that operate at local or regional levels in partner countries outside of the EU. The novelty about today’s new guarantee is that it can also apply to entities that borrow money from financial markets on their own terms – without State backing. Whereas the previous guarantees used to support only State-backed projects. With today’s new type of guarantee agreement, it will be more flexible and faster to back up investments. Ultimately, the new guarantee will advance Global Gateway investments by financing projects of public interest that are considered too risky for traditional lenders while ensuring affordable borrowing costs for partner countries.
The guarantee will support investments in energy, hard infrastructure, economic resilience and SMEs in the North of Africa and the Middle East. It will also help finance telecommunication and energy infrastructure projects and support municipalities in the EU’s enlargement and Eastern Neighbourhood regions, contributing strongly to the EU’s accession priorities. At the same time, the guarantee will enable for instance the development of the Transcaspian Corridor in Central Asia, enhance supply chain security for critical raw materials and advance the Global Gateway Investment Agenda in Latin America and the Caribbean.
Background information
Global Gateway
Global Gateway is the EU’s strategy to boost global connectivity through sustainable partnerships. Launched in December 2021, it seeks to mobilise up to €300 billion in public and private investments by 2027 to support projects in digital, climate and energy, transport, health, and education around the world. The strategy emphasises the advancement of smart, clean, and secure links while promoting environmental sustainability, social inclusiveness, and democratic values. Global Gateway serves as a European response to global infrastructure needs, offering transparent and value-based partnerships to foster economic growth worldwide.
EFSD+
The guarantee announced today falls under the European Fund for Sustainable Development Plus (EFSD+), a key financing tool for the Global Gateway. It is part of the €26.7 billion guarantee envelope to support EIB lending outside the EU for the period 2021-2027.
EFSD+ is part of the European Union’s investment framework and is the main financial instrument supporting the EU’s Global Gateway strategy. EFSD+ guarantees act as a safety net for lenders, covering potential losses if projects fail. If projects succeed, the guarantee remains unused, keeping EU funds available for other projects. In blended finance operations the EU combines a small grant contribution with loans to attract additional public and private funding, maximising the impact of projects.
About EIB Global
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.
