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EU, EIB Unveil €5 Billion Flexible Guarantee to Unlock Global Green and SME Investments

EU, EIB Unveil €5 Billion Flexible Guarantee to Unlock Global Green and SME Investments

EU, EIB Unveil €5 Billion Flexible Guarantee to Unlock Global Green and SME Investments
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  • €5B Guarantee Aims to Unlock €10B: New mechanism will de-risk projects in clean energy, infrastructure, and SME financing outside the EU.
  • Broader Eligibility: For the first time, support extends to non-state-backed entities, speeding up funding deployment.
  • Geopolitical Reach: Investments target North Africa, Middle East, Eastern Neighbourhood, Central Asia, and Latin America under the Global Gateway strategy.

The European Commission and European Investment Bank (EIB) have introduced a new €5 billion flexible guarantee to expand EIB operations beyond the EU and unlock up to €10 billion in investment across strategic global regions.

Announced at the 4th International Conference on Financing for Development, the guarantee aims to boost high-impact projects in clean energy, green infrastructure, and access to finance for SMEs in partner countries.

The key innovation lies in its flexibility. Unlike previous guarantees limited to state-backed initiatives, the new agreement also supports companies and public entities that raise funds independently from the financial markets.

With today’s new type of guarantee agreement, it will be more flexible and faster to back up investments,” said the joint release.

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This expansion enables financing for projects deemed too risky for traditional lenders—while keeping borrowing costs affordable for partner countries. The guarantee will help fund energy and telecommunication infrastructure, support municipalities in EU enlargement areas, and strengthen economic resilience across the EU’s eastern and southern neighbours.

It will also advance flagship initiatives like the Transcaspian Corridor in Central Asia and strategic raw material supply chains, and accelerate Global Gateway investments across Latin America and the Caribbean.

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