The EIB and the European Commission announce a more flexible guarantee of €5 billion to boost global investments

This article is published in association with European Investment Bank.

On the 4^th International Conference on Financing for Development, the European Investment Bank (EIB) and the European Commission 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.

“Complementing policy with the right financing tools helps us boosting the economic potential of the Middle East and North Africa, which will be one of the pillars of the New Pact for the Mediterranean, and a fundamental one to foster job creation and mutual advantages for the EU and our partner countries. With this agreement, we are one step closer to a connected Mediterranean, especially when it comes to energy infrastructure and support to SMEs. We also aim at building a resilient Mediterranean region.”

Dubravka Šuica, Commissioner for Mediterranean

“This new agreement will build on our valued partnership with the European Investment Bank. It will unlock essential financial resources for investment in key areas such as energy, digital and municipal infrastructure. These sectors are crucial for the seamless integration of accession countries into the EU and for sustainable economic growth in our Eastern Neighbourhood region.”

Marta Kos, Commissioner for Enlargement

“This agreement is an important boost for the Global Gateway, our strategy to support sustainable development, strengthen EU’s presence globally and deepen our international partnerships. We are providing a €5 billion guarantee to unlock high-impact Global Gateway investments where they are needed the most, from clean energy and infrastructure to empowering small businesses. By de-risking investments, we are enabling large-scale projects that would not happen otherwise. This will help us create new long-term opportunities both for Europe and our partners.”

Jozef Síkela, Commissioner for International Partnerships

“This new agreement will help to position Europe as a trustworthy and reliable partner around the world. It expands the scope of our financing and strengthens the European Union’s ability to invest in high impact projects from basic services like water, health and clean energy to value chains in critical raw materials to support for accessible transport in cities and regions.”

Nadia Calviño, President of the European Investment Bank

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.