The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), stands as one of Europe’s foremost catalysts for economic growth and climate action on the global stage. As the world’s largest multilateral lender, the EIB Group plays a pivotal role in fostering thriving economies, generating employment opportunities, and championing equality and sustainability through strategic partnerships with both public and private partners.
Within the Maltese context, the EIB Group has demonstrated unwavering commitment by channeling nearly €1 billion in financing since 1979. Its firm support for the nation’s economic development, focus on empowering small and medium-sized enterprises (SMEs), and diverse operations targeting energy and infrastructure have earned the Group accolades from key financial stakeholders. Throughout the years, the Bank has forged strong partnerships with national commercial banks and Malta’s promotional bank, the Malta Development Bank, establishing a vital network that reaches various economic sectors, notably smaller businesses.
Over the past few decades, the EIB, the biggest multilateral financial institution in the world and one of the largest providers of finance for climate action, has aligned itself with large-scale projects, investing approximately €760 million into over 25 projects.
Notable among these endeavors are iconic infrastructure projects such as Valletta’s new city gate, Parliament building, and the Open-Air Theatre. Moreover, within the private sector, the EIB has signed four significant agreements over the past six years, with three specifically focusing on the telecommunications industry.
However, the EIB’s support extends well beyond business-related ventures. It has actively contributed to developing nearly 600 social and affordable housing units and provided crucial backing to numerous small businesses through loans to local commercial banks.
The EIB is one of the world’s main financiers of climate action and environmental sustainability. In this regard, a few weeks ago, the EIB has agreed to provide the Malta Development Bank (MDB) with a €30 million loan to finance the much-needed small-scale green investments on favourable conditions. In addition, a separate agreement between the two institutions will enable the MDB to benefit from the EIB’s advisory services, developed under the Green Gateway programme, to expand its environmental sustainability capacity and financing.
Simultaneously, the European Investment Fund (EIF), which plays a pivotal role in facilitating access to finance for European SMEs through innovative financing products, has made its mark in Malta, supporting 12 transactions totalling €225 million, and activating over €550 million into the real economy. The EIF’s recent activities in Malta have predominantly revolved around guarantee instruments forged in collaboration with local banks such as APS Bank, BNF, and Bank of Valletta, backed by EU structural funds. Additionally, in 2020, the EIF entered into a funding agreement with the Maltese Government, establishing a fund-of-funds (FoF) worth €15 million, subsequently enhanced by an additional €10 million in 2023. The primary objective of this fund is to support investments in energy efficiency, with a particular focus on residential areas and green transportation.
More recently, in October of this year, the EIF and the Maltese Government solidified their partnership through an agreement that secured €16.55 million in financing for SMEs as part of the InvestEU Programme. This agreement is poised to significantly impact Maltese SMEs significantly, enhancing their access to finance and improving financing conditions. As a result, SMEs can expect lower interest rates and reduced collateral requirements, making it easier to secure the necessary funding for growth and innovation.
It is worth noting that the EIB Group provides financing under favourable conditions and offers invaluable advisory services. Through the EIB Advisory Hub, the Bank provides expert guidance on Malta’s road safety management system. It actively contributes to the development of an IT tool aimed at standardising reporting on energy consumption and CO2 emissions.
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