Deutsche Bank and the European Investment Bank (EIB) announced today the launch of a new collaboration, aimed at supporting sustainable transformations at medium-sized companies.
Under the new cooperation, Deutsche Bank will provide long-term loans to companies with between 250 and 3,000 employees to fund their transitions to more sustainable business models, with the EIB providing guarantees covering up to 50% of the loan sum, with the EIB guarantees benefiting the borrowers in full.
The banks said that the cooperation will make €400 million available to the companies for investments in areas including renewable energy, energy efficiency and other projects that meet the sustainability criteria of the EU Taxonomy. At least half of the financing is earmarked for projects that boost renewable energy production.
The EIB’s guarantees form part of an EU-wide linked risk-sharing (LRS) programme, which aims to reduce barriers to accessing finance due to current economic uncertainties such as supply chain bottlenecks, inflation, rising interest rates and insecure energy supply.
EIB Vice-President Ambroise Fayolle said:
“We are pleased to be working with Deutsche Bank to support Germany’s real economy in its sustainable transformation, by providing medium-sized companies with long-term loans. Together, we are promoting the expansion of renewable energy and greater energy efficiency. This will accelerate the shift away from fossil energy in Germany.”
The new cooperation follows a series of sustainable finance goals announced earlier this year by Deutsche Bank, including a target to enable a total of €500 billion in sustainable financing and investments between 2020-2025.
Hauke Burkhardt, Global Head of Corporate Bank Lending at Deutsche Bank, said:
“The energy transition in particular entails a high need for transformational financing for many companies. Sustaining this significant financing volume requires strong partnerships – especially between promotional and commercial banks. The LRS programme serves just this purpose. The new partnership between the EIB and Deutsche Bank provides corporate clients with reliable support for their transformation projects.”