European Investment Bank facts for kids

The European Investment Bank (EIB) is like the European Union's own bank. It's owned by the 27 countries that are part of the European Union. The EIB is the biggest international financial group in the world. It helps fund companies and projects that support the European Union's goals, especially through loans and other financial help.

The EIB focuses on important areas like fighting climate change, protecting the environment, helping small and medium-sized businesses, and improving infrastructure. It has also provided a lot of money during big crises, like the 2008 financial crisis and the COVID-19 pandemic. Since it started in 1958, the EIB has invested over 1.1 trillion euros. It mainly funds projects that are too big for individual countries to pay for on their own.

The EIB is a major supporter of "green finance," which means funding projects that help the environment. In 2007, it was the first organization to create "green bonds." These are special bonds that raise money specifically for climate-friendly projects. The EIB promised to stop funding projects that use fossil fuels by the end of 2021. It plans to invest 1 trillion euros in climate projects by 2030. The EIB doesn't get its money from the EU's regular budget. Instead, it raises money by selling bonds to investors around the world. The EIB has the highest credit rating, "triple-A," which means it's very trustworthy. This allows it to borrow money at low interest rates. Each EU country contributes money to the EIB based on its economic size.

The EIB was created by the Treaty of Rome, which started on January 1, 1958. It was the first bank of its kind, helping different regions develop fairly within the EU. The EIB works in 140 countries worldwide. About 10% of its investments are outside the EU, helping with the EU's development and cooperation efforts.

Quick facts for kids
European Investment Bank

EIB headquarters, East building
Founded	1958; 67 years ago (1958)
Type	International financial institution
Location	Kirchberg, Luxembourg
Owner	EU member states
President	Nadia Calviño
Vice President	Ambroise Fayolle
Employees	4,273 (2023)

How the EIB Helps the EU

The European Investment Bank is the bank of the European Union. It is owned by the countries that are members of the EU. Its main job is to fund projects that help the European Union reach its goals.

Most of the EIB's work (90%) happens inside the European Union. This helps to bring European countries closer together and support their development. The EIB also invests outside Europe to help with the EU's development and cooperation plans. It works in 140 countries, including those hoping to join the EU, countries in Africa, Asia, and Latin America, and the United Kingdom.

The EIB is an independent organization. It makes its own decisions about borrowing and lending money. However, it works closely with other important EU groups like the European Commission and the European Parliament.

Financial Help and Services

The EIB helps both private companies and public organizations. It offers different ways to get money for projects. Its main activity is lending money, but it also gives advice on how to find other investments.

Loans

The EIB provides long-term loans. These loans can cover up to half of a project's total cost. They are available for public projects, private businesses, and small and medium-sized companies. For smaller businesses, the EIB often works with other banks that then lend the money locally.

Big projects for private companies usually need at least €25 million from the EIB. Public projects, like those for cities or regions, can get "framework loans" starting from €100 million. All projects must fit with one or more of the EIB's main goals.

Equity Investments

The EIB also invests directly in companies and funds. These investments are usually for projects focused on infrastructure, the environment, or small and medium-sized businesses. When the EIB invests in "equity," it means it buys a share of a company. This helps companies raise money by selling parts of their business.

Sometimes, the EIB provides special funding called "quasi-equity." This helps growing companies, especially in areas like biotech, software, and renewable energy. These investments are often smaller and aim to help new, innovative companies. The European Investment Fund (EIF) helps the EIB by working with small businesses and their financial partners.

Guarantees

The EIB offers guarantees to make it easier for projects to get money from other investors. A guarantee means the EIB promises to cover some of the losses if a borrower can't pay back their loan. This makes projects look safer to other banks and investors.

By offering guarantees, the EIB helps small and medium-sized businesses get the financing they need. It covers a part of the possible losses from a group of loans. This encourages other private investors to get involved.

Advice and Support

The EIB also provides advice and technical help. This is done through the European Advisory Hub. This service is available for both public and private projects, inside and outside the European Union. The EIB can offer guidance on how to structure finances, manage purchases, and understand rules. It also helps assess a project's impact, for example, on climate change.

fi-compass

fi-compass is a special platform created by the European Commission and the EIB. It helps people in charge of EU funds learn how to use financial tools like loans and guarantees. These tools help attract private money to projects that support EU goals, like creating jobs and boosting the economy. fi-compass offers advice on using funds from various EU programs, such as those for regional development or rural areas.

Special Partnerships

Besides using its own money, the EIB works with other organizations through "mandates and partnerships." These partnerships help fund projects that might be riskier. They can also combine EIB loans with grants, which are funds that don't need to be paid back. The EIB partners with groups like the European Commission, the United Nations, and the International Fund for Agricultural Development.

Where the EIB Gets Its Money

The European Investment Bank is a not-for-profit organization. Even though it's part of the European Union, it doesn't get money from the EU's main budget. It is financially independent. It uses its own money and money it raises from international financial markets.

The EIB raises money by selling bonds. When you buy an EIB bond, you are lending money to the EIB. The EIB then lends this money to its clients for projects. Bonds are a common way for governments and companies to borrow money. The EIB's bonds are bought by investors all over the world.

Because the EIB has a "triple-A" credit rating, it can borrow money at very low interest rates. This means it can then lend money to projects at lower rates. This helps projects inside and outside Europe that support the EU's goals.

The EIB also offers special bonds like Green Bonds and Sustainability Awareness Bonds. In 2007, the EIB issued the first Green Bond, called a Climate Awareness Bond. The EIB is a world leader in issuing Green Bonds. The money raised from these bonds is used only for projects that help fight climate change, like those in renewable energy (wind, solar, hydroelectric) and energy efficiency.

Who Owns the EIB?

The European Investment Bank is owned by the countries that are members of the European Union. Each member country contributes money to the EIB based on its economic size.

After the United Kingdom left the European Union (Brexit), the remaining EU countries agreed to increase their contributions. This kept the EIB's total capital at the same level. As of March 2020, the EIB's total capital was €248.8 billion. The UK's departure did not affect the EIB's top credit rating.

Breakdown of the EIB's capital as of 1 March 2020

Country	Paid-in capital	Uncalled capital	Total subscribed capital
Germany	€4167287407	€42555081742	€46722369149
France	€4167287407	€42555081742	€46722369149
Italy	€4167287407	€42555081742	€46722369149
Spain	€2500372476	€25533049371	€28033421847
Netherlands	€1155143086	€11795972691	€12951115777
Belgium	€1155143086	€11795972691	€12951115777
Poland	€1013823198	€10352856629	€11366679827
Sweden	€766322950	€7825458763	€8591781713
Denmark	€584882101	€5972639556	€6557521657
Austria	€573418425	€5855575961	€6428994386
Finland	€329450757	€3364251741	€3693702498
Greece	€313330025	€3199631688	€3512961713
Portugal	€201923382	€2061980655	€2263904037
Czech Republic	€196841038	€2010081290	€2206922328
Hungary	€186220601	€1901628594	€2087849195
Ireland	€146220406	€1493158667	€1639379073
Romania	€146220406	€1493158667	€1639379073
Croatia	€94750368	€967562174	€1062312542
Slovakia	€67004670	€684231479	€751236149
Slovenia	€62207800	€635247290	€697455090
Bulgaria	€45491879	€464549338	€510041217
Lithuania	€39033623	€398599585	€437633208
Luxembourg	€29244304	€298634014	€327878318
Cyprus	€28676120	€292831891	€321508011
Latvia	€23821199	€243254895	€267076094
Estonia	€18395807	€187852433	€206248240
Malta	€10915533	€111466131	€122381664
27 total	€22190715461	€226604891420	€248795606881

The EIB Group

The EIB Group was formed in 2000. It includes the European Investment Bank (EIB), the European Investment Fund (EIF), and the EIB Institute.

European Investment Bank

As mentioned, 90% of the EIB's work is within the European Union. This helps with European integration and development. The EIB also invests outside Europe to support the EU's development and cooperation policies. It works in about 140 countries. These include countries hoping to join the EU, countries in the EFTA, and many others in Africa, Asia, and Latin America.

The EIB is one of the largest international lenders in the world. Since it was created in 1958, it has invested over a trillion euros.

European Investment Fund

The European Investment Fund (EIF) is like the European Union's venture capital arm. It also provides guarantees for small and medium-sized businesses (SMEs). In 2018, SMEs made up almost all non-financial businesses in the EU. They employed about 97.7 million people and created a lot of economic value.

The EIF helps businesses at all stages, from new startups to growing companies. It supports them with different types of funding. The European Investment Bank is the main owner of the EIF, holding 62% of its shares. The European Commission holds another 29%.

EIB Institute

The EIB Institute was created in 2012. Its job is to support social, cultural, and academic projects. It works with European groups and the public. The Institute is a part of the EIB and helps with community and citizenship activities.

What the EIB Aims to Do

The EIB is a not-for-profit organization. It provides long-term funding, guarantees, and advice to help the European Union achieve its goals. It is part of the European Commission's Investment Plan for Europe. This plan aims to fill investment gaps by taking on some of the risks in the projects it funds.

The EIB funds projects in several key areas:

• Climate and environment
• Innovation and skills
• Infrastructure
• Small and medium-sized businesses
• Helping regions grow equally (cohesion)
• Development in other countries
• Responding to crises, like the COVID-19 pandemic and the 2008 financial crisis.

Since 1959, the EIB has supported almost 25,000 projects worldwide. It funds projects both inside and outside the EU. These projects must meet certain criteria. For example, they might be in less developed regions, or they might be projects that individual countries can't fund alone.

The EIB wants to support steady economic growth both within the EU and globally. Because of its high credit rating, the EIB can borrow and lend money at low rates. The EIB Group (EIB and EIF) helps companies, small businesses, and startups. It works with a wide network of commercial banks and other financial groups.

Helping with COVID-19

The European Investment Bank provided money to help with the economic effects of the pandemic. It also supported health emergencies, like finding a vaccine for COVID-19.

In May 2020, the EIB approved a €25 billion fund called the Pan-European Guarantee Fund (EGF). This fund was part of the EU's overall response to the COVID-19 pandemic. All 27 EU countries were asked to contribute to this fund. The EGF aimed to provide up to €200 billion in extra funding for small and medium-sized European businesses. Companies could get money from this fund if they had financial problems because of the pandemic but would have been able to get loans before the crisis.

In December 2019, the EIB lent €50 million to BioNTech for cancer treatments. In June 2020, it approved another €100 million loan to support BioNTech's vaccine trials and manufacturing. BioNTech's COVID-19 vaccine was approved for use in the UK in December 2020.

Climate Action

The EIB Group is one of the world's biggest funders of climate action. The EIB plans to invest 1 trillion euros in climate-related projects by 2030. This includes supporting a fair shift away from fossil fuels. As the EU's climate bank, the EIB Group promised in November 2019 to align its work with the Paris Agreement goals by the end of 2020. In November 2020, EU countries approved the EIB Group Climate Bank Roadmap 2021–2025. This plan shows how the EIB will help with the European Green Deal and sustainable development outside the EU. The EIB stopped funding all fossil fuel projects by the end of 2021.

The EIB helps with the European Green Deal. This plan aims for Europe to become the first continent with no net carbon emissions by 2050. The EIB funds projects that limit global warming, fight environmental degradation, stop biodiversity loss, and address inequalities caused by climate change. In 2019, the EIB Group funded €19.3 billion in projects to fight climate change.

Innovation and Skills

Since 2000, the EIB has invested over €210 billion in projects that improve skills. This included €14.4 billion in 2019 alone. This support helps with:

• Developing new products and business methods.
• Increasing investment in research and development.
• Improving education, training, and digital access.
• Encouraging the use of new technologies.
• Helping women participate more in the job market.

Development

The EIB Group funds projects that help reduce poverty and inequality. These projects aim to create stable growth in EU countries, emerging markets, and developing countries. Since 2010, the EIB has provided €69.6 billion in funding outside the European Union. In 2020, the EIB Group offered loans to over 100 countries. It funded vaccines, tests, and treatments. It also invested €1.7 billion to help the Western Balkan countries recover from the COVID-19 pandemic. The EIB also worked with the United Nations Development Programme and the World Health Organization to help businesses and healthcare projects in developing countries.

Infrastructure

Since it was founded in 1958, the EIB has supported the building of infrastructure. This includes projects for EU countries and other nations. In 2019, the EIB provided €15.74 billion for infrastructure projects. The EIB supports projects like:

• sustainable transport
• energy efficiency
• Urban development
• Digital networks
• Social housing and public buildings
• cultural heritage
• Water and wastewater management.

Small to Medium Size Businesses

The EIB is part of InnovFin, an EU initiative for innovators. Through this, the EIB Group directly funds medium-sized companies. It also offers special "venture debt financing" for growing European companies.

The EIB Group works with many commercial banks and other financial groups. This helps it reach micro-enterprises (0–9 employees), small enterprises (10–49 employees), medium-sized enterprises (50–249 employees), and mid-caps (250–3,000 employees). In 2019, the EIB Group provided €25.52 billion in loans and services to 386,600 small and medium-sized businesses. These businesses employed 4.4 million people.

Cohesion

The EIB focuses on making sure all parts of the European Union grow together. This means supporting economic, social, and regional fairness. The EIB prioritizes projects that address inequalities. It helps create jobs and education, improve public infrastructure and services, and protect the environment across the EU. The EIB aims to use 30% of its new funding for cohesion projects. In 2019, this amounted to €16.13 billion. In 2023, the EIB Group invested €36.2 billion in projects related to cohesion.

History of the EIB

The European Investment Bank was created by the Treaty of Rome. This treaty also led to the creation of the European Economic Community (EEC) on January 1, 1958. At that time, the EIB's job was to provide loans for Europe's infrastructure projects.

The 1960s

In 1962, the EIB was allowed to fund projects outside the European Community (EC). The EC was formed in 1957 by six countries: Italy, France, West Germany, Luxembourg, Belgium, and the Netherlands. These countries signed the Treaty of Rome to increase cooperation after World War II. Also in 1962, the EIB made its first loan with another bank, the International Bank for Reconstruction and Development. The EIB lent money to Italian companies for a petrochemical complex and to produce electricity.

In 1968, the EIB moved from Brussels to Luxembourg City. It also started offering "global loans" to help small and medium-sized businesses. As the economies of the EC countries grew in the 1950s and 1960s, they could fund their own infrastructure. This meant the EIB played more of a supporting role.

The 1970s

The economic downturn in Europe from 1973 to 1975 changed the EIB's role. It became harder for individual countries to achieve their goals. In 1973, three new countries joined the European Community: the United Kingdom, Ireland, and Denmark. This led to the EIB's first increase in capital. With more money and new European policies, the EIB started its own regional lending policy in 1974.

Under this new policy, the EIB expanded its lending. It started giving loans for industrial development in struggling industrial regions of the growing EC. The EIB also benefited from a new fund, the European Regional Development Fund (ERDF), created in 1975. The ERDF was set up to help regional economies develop and adapt to changes.

The EIB was the first European Community institution to build its own headquarters. The land in Kirchberg was agreed upon in 1972.

The 1980s

In the 1980s, the EIB moved into its new headquarters, the West Building, designed by Sir Denys Lasdun. Construction started in 1974, and the building opened in 1981.

During the 1980s, the EIB helped countries like Greece, Spain, and Portugal prepare to join the EC. Greece joined in 1981, and Spain and Portugal followed in 1986. In 1987, the bank started focusing more on loans for small and medium-sized businesses, as well as innovative companies, telecommunications, and city transport projects.

After the fall of the Berlin Wall in 1989, the EIB began funding projects in former Soviet countries. It lent money to Poland, Romania, Hungary, Bulgaria, the Czech Republic, and Slovakia. The EIB increased its investments in these regions in the late 1990s as these countries prepared to join the European Union.

The 1990s

In 1991, the EIB helped create the European Bank for Reconstruction and Development (EBRD). In 1993, it expanded its work to the Baltic countries (Estonia, Latvia, and Lithuania) and to countries in Latin America and Asia. In 1994, the European Investment Fund (EIF) was established. In 1995, Austria, Finland, and Sweden joined the EIB.

The European Investment Bank made its first borrowing in euros in 1997. This was more than a year before the new European currency was officially launched on January 1, 1999. In the same year, the bank adopted a new logo.

The 2000s

In 2000, the EIB Group was created. The European Investment Bank became the main owner of the EIF, which specializes in providing risk capital. Also in 2000, the Cotonou Agreement was signed. This agreement expanded the EIB's cooperation with non-EU countries that had agreements with the Union.

After the Lisbon European Council in 2000, the EIB changed its goals. It continued to support infrastructure and EU policies. It also helped Europe become a high-technology and knowledge-based economy.

In 2004, the EIB received permission to work in Russia, Belarus, Moldova, and Ukraine. In the same year, many new countries joined the European Union, including the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Malta, and Cyprus. Bulgaria and Romania joined in 2007, and Croatia in 2013.

From 2002, the EIB and the European Commission started working together on investments to fight and adapt to climate change. In 2007, the EIB issued the first Climate Awareness Bonds. These were the world's first Green Bonds. The money raised was used for EIB projects in renewable energy and energy efficiency.

The 2010s

The East Building, opened in 2008, was designed to be very environmentally friendly. It was the first building in continental Europe to get a "very good" environmental certification.

The European Fund for Strategic Investments was launched in 2014 by the European Commission and the EIB. This fund aimed to bring in €315 billion and was later increased to €500 billion by 2020. In 2016, the bank started the Economic Resilience Initiative. This helps regions outside Europe affected by the refugee crisis by investing in growth, jobs, infrastructure, and social fairness. In 2019, the bank agreed to stop funding fossil fuel projects by the end of 2021.

The 2020s

In 2020, the EIB announced its 'Climate Bank Roadmap 2021–2025'. This plan includes stopping funding for all high-carbon projects. As part of the European Guarantee Fund (EGF) to deal with the economic effects of the COVID-19 pandemic, the bank made €200 billion available. The bank funded efforts to control the economic impact of the crisis. It also supported healthcare projects, including vaccine research and ways to limit the virus's spread.

As the 2022 Russian invasion of Ukraine continued, it became clear that EIB rules prevented it from investing in defense. In March 2024, more than half of the EU countries asked the EIB to change its policy on defense spending.

How the EIB is Organized

The EIB has different departments that prepare and carry out decisions. These departments evaluate projects, manage risks, conduct studies, and raise money. The EIB's structure is set out in the Treaty on the Functioning of the European Union (TFEU).

Leadership and Management

The European Investment Bank has three main groups that make decisions:

• The Board of Governors: These are the finance ministers from the EU countries. They set the overall direction for the EIB.
• The Board of Directors: This group oversees the strategic direction of the bank.
• The Management Committee: This committee supervises the daily operations.

The President of the European Investment Bank leads the Management Committee meetings. The members of the Management Committee are appointed for six years and are only responsible to the bank. The President also chairs the Board of Directors.

The EIB has internal and independent controls to make sure its operations are honest and sound. These include investigations, an Audit Committee, and various internal checks. The bank also works with outside groups like the European Court of Auditors and the European Anti-Fraud Office (OLAF).

Being Accountable

The EIB has several ways to ensure it is accountable for its actions.

Internal Checks

The EIB has four official bodies: the Audit Committee, the Board of Governors, the Board of Directors, and the Management Committee.

The Audit Committee acts as an independent checker. It reviews the bank's operations and financial records. Its six independent members are appointed for six years. They report directly to the Board of Governors. The Audit Committee also chooses the EIB's external auditors, like KPMG, and checks their independence.

Other internal groups, like Financial Control, make recommendations to improve the bank's management and risk handling. The EIB's Compliance Function makes sure all bank activities follow its rules for honesty. This includes fighting money laundering and terrorism financing.

External Checks

The EIB also works with outside control bodies. The European Court of Auditors can check how the EIB manages EU funds. The European Anti-Fraud Office (OLAF) helps fight fraud and corruption within EU institutions. If EU citizens are unhappy with an EIB project or policy, they can take their concerns to the European Ombudsman.

Being Open (Transparency)

The EIB has a Complaints Mechanism team. This team looks into complaints about the EIB's projects, like environmental issues or safety concerns. They check if the EIB followed its own rules and can offer mediation to solve problems.

The EIB also has a committee for complaints about how projects are chosen or how contracts are awarded. A special division investigates fraud. The bank publishes many documents about its role, how it's run, and its operations. This includes summaries of projects, financial information, and environmental details. The EIB aims to be transparent but does not share information that could harm clients' interests or ongoing investigations. In 2014, the EIB created a public register to make it easier for people to find its publications and request documents.

Talking to the Public

The EIB Complaints Mechanism holds events to inform the public and community groups about its work. The European Investment Bank also holds public consultations. This helps them be transparent and get advice from experts.

Offices Around the World

The EIB works in 140 countries. These include countries hoping to join the EU, countries in the EFTA, and many others in Africa, Asia, and Latin America, and the United Kingdom.

European Union

Country	City
Austria	Vienna
Belgium	Brussels
Bulgaria	Sofia
Croatia	Zagreb
Czech Republic	Prague
Denmark	Copenhagen
Finland	Helsinki
France	Paris
Germany	Berlin
Greece	Athens
Hungary	Budapest
Ireland	Dublin
Italy	Rome
Lithuania	Vilnius
Luxembourg	Luxembourg
Netherlands	Amsterdam
Poland	Warsaw
Portugal	Lisbon
Romania	Bucharest
Slovakia	Bratislava
Slovenia	Ljubljana
Spain	Madrid
Sweden	Stockholm

Non European Union

Country	City
Albania	Tirana
Australia	Sydney
Barbados	Bridgetown
Bosnia and Herzegovina	Sarajevo
Cameroon	Yaoundé
China	Beijing
Colombia	Bogota
Côte d'Ivoire	Abidjan
Dominican Republic	Santo Domingo
Egypt	Cairo
Ethiopia	Addis Ababa
Georgia	Tbilisi
India	New Delhi
Jordan	Amman
Kenya	Nairobi
Lebanon	Beirut
Moldova	Chișinău
Morocco	Rabat
New Zealand	Auckland
Russia	Moscow
Senegal	Dakar
Serbia	Beograd
South Africa	Pretoria
Tunisia	Tunis
Turkey	Ankara
Turkey	Istanbul
Ukraine	Kyiv
United Kingdom	London
United States	Washington, D.C.

EIB Presidents

Here are the people who have been President of the EIB:

• Pietro Campilli (Italy): February 1958 – May 1959
• Paride Formentini [it] (Italy): June 1959 – September 1970
• Yves Le Portz (France): September 1970 – July 1984
• Ernst-Günther Bröder (Germany): August 1984 – March 1993
• Sir Brian Unwin (UK): April 1993 – December 1999
• Philippe Maystadt (Belgium): March 2000 – December 2011
• Werner Hoyer (Germany): January 2012 – January 2024
• 

  Nadia Calviño, president of the European Investment Bank as of 2024
  Nadia Calviño (Spain): January 2024 – present

Dr. Werner Hoyer was the president of the European Investment Bank from 2012 to 2024. He was recognized as the European Banker of the Year in 2019. Under his leadership, the EIB funded €150 billion in projects that helped reduce greenhouse gas emissions.

Nadia Calviño became the president of the European Investment Bank in January 2024. She was nominated by the Spanish government in August 2023. Before this, Calviño was the First Deputy Prime Minister of Spain from July 2021 and Minister of Economy from 2018 until December 2023.

EIB Publications

The European Investment Bank publishes many reports, studies, and articles. These are for both experts and the general public. All publications are available for free on the EIB website.

Yearly Reports

The EIB publishes annual reports. These include the Activity Report, Financial Report, Statistical Report, Investment Report, and Sustainability Report. They cover the bank's main activities throughout the year.

Surveys

The European Investment Bank also conducts research in various areas.

Blog and Podcasts

The EIB's website also features blog articles, expert essays, press releases, and podcasts. In 2019, their podcast series "A Dictionary of Finance" won an award. In 2020, another podcast series, "Monster under the Bed," also received an award. The bank's "Climate Solutions" content series won an award in 2020 for its focus on sustainability.

Related Topics

See also

In Spanish: Banco Europeo de Inversiones para niños