Tripped the European Investment Bank (EIB) the volume of its loan frames for purposes Defense.
Small and medium -sized businesses that supply European defense manufacturers are going to benefit. More specifically, the European Investment Bank (EIB) wants to encourage more investment in the European Defense Industry. To this end, the EIB is increasing the funding field for banks from one billion to three billion euros. This is true for the support of small and medium -sized enterprises (SMEs) supplied by large European defense manufacturers, as announced today (11.6.25) by the EU Development Bank.
“Enhancing Europe’s security and defense is central to our mission,” said EIB President Nadia Calvinio. “We are increasing funding at record levels and, through lending and partnerships with banks across the EU, we ensure that the media in the defense supply chain have access to the funding they need.”
The new program is also aimed at tackling the need for investment in innovation, durability of the supply chain and strategic autonomy in times of growing geopolitical uncertainty, according to the EIB.
According to the EIB, there are more than 2,500 small and medium -sized EU companies that are key suppliers of major defense companies such as Airbus, Thales, Rheinmetall and Leonardo.
Deutsche Bank receives a loan
Deutsche Bank is the first bank to benefit from the new program, as EIB and Deutsche Bank also announced Wednesday. The EIB provides Deutsche Bank loan of € 500 million.
This will provide 1 billion euros in funding and capital funding for small and medium -sized enterprises throughout the European Union Security and Defense Supply, as well as for military and police infrastructure, such as military training facilities.
The EIB generally provides 50% of the program capital, but the banks themselves bear the full risk.
With this framework loan, Deutsche Bank will be able to provide customers at all levels of supply chain across Europe, where there is the most need, said Fabrizio Campelli, head of Corporate and Investment Banking in Deutsche Bank. “The message is clear: we are ready to enhance the resilience of the European Security and Defense Industry,” Campelli said.
In March, the EIB had already significantly increased the scope of defense funding and had lifted the previous 8 billion euro ceiling on defense spending. This gave the EU Development Bank greater financial flexibility for all types of defense funding.
The EIB also expanded the range of eligible projects “limiting as much as possible” the prohibited funding activities. Since then, the EIB has managed to fund almost everything except weapons and ammunition.
This includes investment in barracks, warehouses, land and aerial vehicles, unmanned aircraft, helicopters, radar systems, satellites, mines lifting technologies, interference technologies and much more.