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EIB and IKB Partner to Support Sustainable Investments in Germany's Mid-Cap Companies 

BySEN
2024-10-10.8 months ago
EIB and IKB Partner to Support Sustainable Investments in Germany's Mid-Cap Companies 
EIB and IKB Partner to Support Sustainable Investments in Germany's Mid-Cap Companies 

The European Investment Bank (EIB) partnered with IKB Deutsche Industriebank AG to support investment by Germany’s mid-cap companies. 

Businesses employing up to 3,000 people can access long-term funding that will assist in their transition to more sustainable business practices. 

Through this partnership, the EIB will guarantee €200 million, ensuring a total lending capacity of €400 million. 

Businesses can apply to IKB for favourable loan terms to finance initiatives to improve market integration, cut carbon emissions, and increase energy efficiency through wholesale market participation. 

A third of the loan amount will go toward programs encouraging the transition to green practices. 

The alliance aims to modernize Germany's mid-cap sector, guarantee job stability, and stimulate economic growth by facilitating funding access. 

The EIB guarantees are a component of a larger EU risk-sharing scheme designed to address the financial difficulties brought on by supply chain interruptions, rising interest rates, inflation, and energy instability. 

Nicola Beer, the Vice president of EIB said, “That's why, together with IKB, we are providing long-term financing so that Midcaps can plan for their future.

She added, “In this way, we help companies to remain innovative, make their supply chains more resilient and secure jobs. This strengthens Germany and Europe as a business location.” 

IKB has expanded its sustainable finance offerings to include project financing, consultancy services, and syndicated ESG loans. 

The bank aims to mobilize €3-4 billion in sustainable investments by the end of 2025, aligning with its Sustainable Finance Framework.  

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