The European Investment Bank (EIB) and Santander have recently entered a significant counter-guarantee agreement valued at €500 million. This agreement will enable Santander to build up a €1 billion bank guarantee portfolio. The scheme will unlock €8 billion in investments, supporting companies across Europe involved in manufacturing wind energy equipment.
Expanding Wind Energy Investment
The guarantees will support investments in manufacturing wind energy equipment, grid connections, and key components like turbines, cables, and transformers. These guarantees will allow manufacturers to receive advance payments and provide performance guarantees when starting new wind energy projects. Additionally, the scheme will help manufacturers pay suppliers in advance, facilitating the timely supply of essential components for wind farms and related infrastructure.
Leveraging Funds for Growth
The counter-guarantee provided by the EIB will trigger further investments from other financial institutions. This leverage effect will speed up wind energy production, attract investments, and contribute to the transition to cleaner energy. Launched in 2023, the EIB’s €5 billion wind power package aims to boost financing and achieve 32GW capacity.
The European Commission launched this agreement as part of the Wind Power Package to speed up the EU’s net-zero transition.
Gemma Feliciani, EIB Director of Financial Institutions, said, “Wind energy will play a significant role in achieving the EU’s renewable-energy target. To unveil its full potential, the EIB together with Santander is putting in place de-risking instruments that will allow manufacturers to overcome some of the challenges impacting the sector such as supply chain disruptions, high costs or intense international competition.”
She added, “This new framework sponsored by the EIB wind package will accelerate the energy transition in Europe while strengthening its industrial competitiveness and strategic autonomy.”
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Strengthening EU’s Industrial Competitiveness
Ricardo Gamazo from Santander’s Global Trade Finance team mentioned that the program had been well-received by clients in the wind equipment industry, who were facing significant order backlogs due to the growing demand for energy transition. He explained that backlogs created a high demand for guarantees, and the added capacity would help secure market credit lines. Gamazo stated that the agreement was another crucial step in strengthening energy security for the EU in a sustainable manner.
The €500 million counter-guarantee agreement between EIB and Santander represents a major step in advancing Europe’s wind energy sector. The partnership boosts financing and competitiveness, accelerating wind energy growth to help the EU meet renewable goals and secure energy.
