The first agreement under the expanded scheme has been signed with Deutsche Bank, which will unlock €1 billion in financing for security and defence-related projects. The EIB will provide a €500 million loan to the bank to support SMEs and Mid-Caps, as well as military and police infrastructure such as training facilities.
The announcement was made at the European Defence and Security Summit in Brussels by EIB Group President Nadia Calviño. “Strengthening Europe’s security and defence is central to our mission,” said Calviño. “We’re scaling up financing to record levels, and through intermediated lending and partnerships with banks across the EU, we ensure that SMEs in the defence supply chain have access to the financing they need.”
Deutsche Bank will deploy the funds across the defence supply chain to meet growing demand for investment in innovation and resilience. “With this framework loan, Deutsche Bank will be able to deploy capital to clients at all stages of the supply chain throughout Europe, where it is most needed,” said Fabrizio Campelli, Head of Corporate Bank and Investment Bank and Member of the Management Board of Deutsche Bank AG.
“It will support the comprehensive efforts our bank is deploying to advise and finance the sector at this crucial moment for Europe,” Campelli added. “Deutsche Bank is honoured to be the first European bank to partner with the EIB under its Pan-EU Security & Defence Lending scheme. The message is clear: we stand ready to reinforce the resilience of Europe’s security and defence.”
The increase in funding follows the EIB’s Pan-European Security and Defence Lending Envelope, which was approved at €1 billion in December 2024. The threefold expansion reflects strong interest from commercial banks in using EIB support to enhance liquidity in the sector.
The initiative builds on the EIB’s recent agreement with national promotional institutions from France, Germany, Italy, Poland and Spain. These institutions—Caisse des Dépôts, Kreditanstalt für Wiederaufbau (KfW), Cassa Depositi e Prestiti (CDP), Bank Gospodarstwa Krajowego (BGK) and Instituto de Crédito Oficial (ICO)—agreed to collaborate on financing in areas such as R&D, industrial capacity and infrastructure.
Over 2,500 SMEs in the EU are key suppliers to major defence firms including Airbus, Thales, Rheinmetall and Leonardo. These companies provide critical technologies, components and services, playing a vital role in job creation and innovation.
By boosting access to finance for SMEs and Mid-Caps, the EIB aims to address longstanding funding barriers that typically do not affect larger corporations. The expanded facility is expected to enhance Europe’s strategic autonomy and reinforce the resilience of its defence supply chain.
Source: European Investment Bank (press release).
