EIB and Deutsche Bank ink deal to back wind projects

FRANKFURT, August 1, 2024 – The European Investment Bank (EIB) has activated a EUR 5-billion initiative to support wind equipment manufacturers by providing a EUR 500-million counter-guarantee to Deutsche Bank, the banks announced on Wednesday.

Launched in December 2023, the EIB’s counter-guarantee scheme is designed to share the credit risks faced by commercial banks when dealing with borrowers in the wind industry.

Deutsche Bank will use the EIB’s backing to provide banking guarantees to manufacturers, enabling them to receive advance payments and provide performance guarantees when taking on new wind projects. The scheme will also enable manufacturers to pay suppliers in advance for components such as turbines, grid connection infrastructure, cables and transformer stations.

“A quick build-up of wind power is crucial for decarbonising the economy. Together with Deutsche Bank, we are promoting the expansion of renewable energy in Europe and in that way bringing the price of sustainable energy down,” said EIB vice-president Nicola Beer.

This transaction will enable Deutsche Bank to set up a portfolio of up to EUR 1 billion of banking guarantees for new wind farms in the EU. The banks estimate the portfolio could initiate investments of up to EUR 8 billion.

Photo by Johanna Montoya

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