Eu Alert - EU Funds

This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.


EUROPEAN INVESTMENT BANK (EIB)

Serbia: European Investment Bank Global provide 96 million euro to modernise electricity distribution network and improve waterborne transport (18.07.2024) – The European Investment Bank Vice-President has expressed unwavering support for sustainable connectivity and the green and digital transition in Serbia. The EU bank has signed an 80 million euro loan to finance energy efficiency improvements to the electricity distribution system through the installation of smart meters. The Bank has also signed a 16 million euro grant under the Western Balkans Investment Framework to support investments in the inland waterway network. EU funding for these two investments will help Serbia create modern and resilient electricity and transport infrastructure.

The European Investment Bank Board of Directors backs 8.4 billion euro of new financing for housing, education, energy, water and business investment (17.07.2024) – The Board of Directors of the European Investment Bank (EIB) approved 8.4 billion euro of new financing to build homes and schools, harness renewable energy, upgrade water, transport and communications networks and bolster business innovation and growth in Europe and around the world. In particular: (i) 3.4 billion euro for housing and education; (ii) 2.2 billion euro for clean energy and water; (iii) 1.7 billion euro sustainable transport and better communications; (iv) 1.1 billion euro for corporate innovation and business financing.

European Investment Bank ‘s new agreement signed to provide additional 2 billion euro to back the reconstruction of areas hit by central Italian earthquake (16.07.2024) – The European Investment Bank (EIB) is further bolstering its commitment to back reconstruction and safety work in the central Italian regions hit by the 2016 and 2017 earthquakes, announcing the approval of a new 2 billion euro financing package. Total EIB support for earthquake-affected regions in central Italy has reached 4.75 billion euro – almost 15% of the 27 billion euro estimated by the government to be needed for reconstruction. The financing package approved by the EIB Board of Directors will be split into a 1 billion euro direct loan to the Ministry of Economy and Finance for the reconstruction and repair of public infrastructure and another 1 billion euro channelled into the banking system via Cassa Depositi e Prestiti to back the reconstruction of private, residential, and industrial property.

France: European Investment Bank and La Banque Postale sign new partnership including a 600 million euro refinancing package (16.07.2024) – The European Investment Bank La Banque Postale have renewed their cooperation for a further three years, signing a new 600 million euro refinancing package. The signature of these financing packages makes it possible to target specific markets or elements. They are aimed in particular at asset and project financing and the creation of special purpose vehicles, unlocking long-term financing (over 20 years) with attractive interest rates. La Banque Postale has three years to allocate the funds.

France: European Investment Bank lends 90 million euro for sustainable expansion of the Port of Livorno (15.07.2024) – The European Investment Bank has signed a 90 million euro agreement for sustainable expansion of the Port of Livorno The operations concern the construction of the Darsena Europa container terminal. With current financing totalling more than 1.5 billion euro, the EIB confirms its position as the main financer of Italian port authorities.

European Investment Bank: group cohesion finance reaches record high, bringing opportunity where talent is (15.07.2024) – The European Investment Bank (EIB) Group exceeded its targets for cohesion financing across the EU in 2023, supporting projects to mitigate regional disparities. The third annual report on “EIB Group activities in EU cohesion regions” highlights how targeted support unlocks regional potential and has a direct impact on improving people’s lives. It also underlines that regional convergence across the EU requires more social investments and connectivity.

European Investment Bank invests 490 million euro with ICF to finance the construction of affordable and energy-efficient homes in Catalonia (15.07.2024) – The European Investment Bank (EIB) and Institut Català de Finances (ICF) have signed a 163 million euro loan to finance the construction of affordable rental housing with high energy efficiency standards in Catalonia, Spain. This is the first tranche of a total loan of 490 million euro backed by the European Union’s InvestEU programme. The investment is expected to finance the construction of more than 4 300 social rental housing units benefiting over 10 000 people, thereby contributing to social inclusion and urban regeneration.

European Investment Bank supports ZF in developing advanced braking and steering for cars (15.07.2024) – The European Investment Bank (EIB) is providing a promotional loan of 425 million euro to German automotive supplier ZF Friedrichshafen AG. The funds will enable ZF to invest a total of 1.3 billion euro in research and development of innovative technologies for braking and steering systems, actively shaping the switch to software-defined vehicles. With such new technologies, ZF will be able to remain competitive as the mobility sector moves towards highly automated driving. The company is already pioneering the development and industrialisation of modern chassis systems.

Luxembourg: European Investment Bank Climate Finance Platform supports BlueOrchard’s climate insurance equity fund with the backing of the government of Luxembourg (12.07.2024) – The Luxembourg-EIB Climate Finance Platform (LCFP) will provide 5 million euro for impact investor BlueOrchard’s innovative 100 million dollars climate insurance fund, with the backing of the government of Luxembourg. The LCFP seeks to catalyse private and public sector investment into high-impact companies in emerging markets involved in insuring climate change mitigation and adaptation projects, including projects addressing losses and damages caused by climate change.

Forestry company Stora Enso to offer sustainable food and personal care packaging with 435 million euro European Investment Bank loan (11.07.2024) – The European Investment Bank (EIB) is extending a 435 million euro credit to forestry company Stora Enso so it can produce greener packaging for foods and personal care products. The loan is for a major upgrade of Stora Enso’s manufacturing site in Oulu, where the company already invested 1 billion euro in reusable, fiber-based, and recyclable packaging production for consumer goods.

European Investment Bank and Poste Italiane sign 450 million euro agreement to promote digitalisation, service automation, and energy efficiency (11.07.2024) – This financing will enable Poste Italiane to double its daily automated parcel-handling capacity by opening new sorting centres. This is the tenth agreement signed since the EIB began working with Poste Italiane around 25 years ago, with total lending to the company reaching almost 3.3 billion euro.

Ukraine: EU bank helps improve water supply for war-torn Bucha (10.07.2024) – Around 9 000 residents now have access to quality drinking water thanks to the renovated water supply facility. Damaged by the Russian invasion, the facility has now been renovated and equipped with an iron removal station that will ensure clean, safe drinking water for the population. This renovation was made possible through the city’s participation in the Ukraine Recovery Programme, a 340 million euro European Investment Bank loan facility helping Ukrainian municipalities rebuild their social infrastructure.

European Investment Bank and Banca Sella provide 200 million euro to facilitate lending to businesses (09.07.2024) – The European Investment Bank (EIB) and Banca Sella have signed a 100 million euro financing agreement to support investments and the working capital and liquidity needs of small and medium businesses (SMEs) and mid-caps, focusing in particular on product and process innovation and projects in cohesion regions. Underpinning its support for local businesses, Banca Sella will provide an additional 100 million euro to what has been provided for under the agreement with the EIB, increasing the funds made available to small businesses and mid-caps to 200 million euro.

Europeans over 30 understand climate change better than younger generations according the European Investment Bank survey (08.07.2024) – To assess the public’s understanding of climate change, the sixth edition of the European Investment Bank Climate Survey focuses on people’s knowledge of climate change in three key areas: definitions and causes, consequences, and solutions. Participants answered 12 questions and were ranked on a scale of 0 to 10, with 10 indicating the highest level of knowledge. With over 30000 respondents across 35 countries, including the EU Member States, the United Kingdom, the United States, China, Japan, India and Canada, the EIB Climate Survey provides valuable insights into people’s overall understanding of climate change. Details about the findings in every country have been published by the European Investment Bank on its website.

France: European Investment Bank signs 90 million euro finance contract to reopen Nancy-Contrexéville regional railway line (05.07.2024) – The European Investment Bank announces the signature of a 90 million euro loan agreement with Nova 14, a company dedicated to the renovation, operation and maintenance of the Nancy-Contrexéville regional railway line, which has been closed since 2016. The project involves three and a half years of renovation work and the introduction of 14 return trips a day from 2028, with a 55% increase in passenger numbers. The reopening of this 75 km line will help to open up the rural areas of western Vosges and southern meurthe-et-mosellan, and contribute to the development of sustainable, low-carbon transport in the Grand Est region.

Greece: Athens to get more climate-resilient water network under EIB advisory agreement with EYDAP (05.07.2024) – The European Investment Bank will provide advisory services to Athens Water Supply and Sewerage Company (EYDAP) in Greece to support the company’s 2 billion euro, 10-year investment programme to ensure the Greek capital has a more resilient water supply. Under the agreement, European Investment Bank Advisory will help EYDAP manage climate risks such as water scarcity, droughts, and heatwaves as it serves a population of 4.4 million and operates a 14,500-kilometre network of pipelines.

Belgium: the European Investment Bank offers medtech Nyxoah 37.5 million euro in venture-debt financing to develop innovative solutions to treat obstructive sleep apnea. (03.07.2024) – The European Investment Bank is providing venture debt financing to Belgian medical-technology company Nyxoah 37.5 million euro to develop treatments against obstructive sleep apnea. This transaction aligns with the EIB’s priority objective to boost research and technological innovation, in line with the implementation of EU policies.

Poland: the European Investment Bank Group inaugurates digital hub in Warsaw (02.07.2024) – The European Investment Bank Group inaugurated an IT Centre of Excellence (CoE) in Warsaw to expand the group’s cloud, cybersecurity and other digital capabilities. The CoE will improve the EIB Group’s global activities through new expertise, greater innovation and wider collaboration.

Italy: the European Investment Bank offers 100 million euro to Snam to support energy efficiency (02.07.2024) – The European Investment Bank and Snam have signed a financing agreement for 100 million euro to support energy improvement projects in public buildings and energy efficiency measures for industrial activities. The framework financing agreement can be used in several tranches over three years. Each tranche will have a maximum total tenor of 15 years. These projects will help to improve the energy efficiency of more than 400 public and private buildings in Italy and produce clean energy, with a total capacity of around 24 MW after the installation of solar panels. According to EIB estimates, these initiatives will help to produce renewable energy equal to the annual energy consumption of more than 10,000 Italian households and generate yearly energy savings of 84 GWh.

Spain: European Investment Bank and EMT Madrid sign 50 million euro loan to expand zero-emissions urban bus fleet (02.07.2024) – The European Investment Bank (and Madrid’s Empresa Municipal de Transportes (EMT) have signed a 50 million euro loan to finance the expansion of EMT’s zero-emissions bus fleet, boosting support for sustainable urban public transport. The project includes the purchase of 250 electric buses and 10 hydrogen buses to replace the vehicles that have been in service in Madrid the longest, and are nearing the end of their useful life. With EIB support, EMT will also acquire charging infrastructure to power the electric vehicles added to the city fleet. The financing will pay to equip one of its operations centres with this technology, located in Madrid’s Sanchinarro district.

The European Investment kicks off H2 2024 funding season with a new seven-year USD Global Climate Awareness Bond (CAB) (02.07.2024) – The European Investment Bank priced a new USD 4billion seven-year Global CAB benchmark due October 10, 2031. The bond pays a semi-annual coupon of 4.375% and has an issue price of 99.277%, providing a spread of 11.03bps over the 4.250% UST due 31.06.2031. The transaction is EIB’s fifth USD benchmark of 2024 and first USD Global Climate Awareness Bond of the year. Including this transaction, the EIB has raised EUR 46.7bn equivalent, or about 78% of the announced 60billion euro funding programme.

Croatia: capital Zagreb to get vital infrastructure upgrades with 207 million euro European Investment Bank loan (01.07.2024) – The European Investment Bank (EIB) is extending a 207 million euro credit to the City of Zagreb in Croatia for infrastructure upgrades critical for the Croatian capital’s sustainable development. The financing marks the EIB’s first loan signature with the City of Zagreb. The credit is the initial tranche of a 395 million euro EIB framework loan to support the city’s development in the next five years.

Portugal: European Investment Bank and Banco BPI mobilise 300 million euro to support SMEs and sustainable projects (01.07.2024) – The European Investment Bank (EIB) has signed a loan agreement for 300 million euro with Banco BPI. This operation aims to finance small and medium-sized enterprises (SMEs) and mid-caps, and public sector entities in Portugal, with a focus on climate action and environmental sustainability projects. By facilitating access to credit, this loan is essential for promoting and accelerating private sector investments, which are important for growth and employment in the Portuguese economy. The operation will also contribute to cohesion regions, helping to reduce regional disparities.

Austria: voestalpine to receive 300 million euro European Investment Bank loan for research and development of green steel production (01.07.2024) – The European Investment Bank (EIB) is providing a loan of 300 million euro to voestalpine AG, Europe’s third largest steelmaker. The financing will be used for the company’s research and development (R&D) programme over a period of four years, with the goal to optimise manufacturing processes, increase energy and raw material efficiency, and extend product life. Overall, voestalpine aims to drastically reduce its environmental and carbon footprint by 2030 and to achieve carbon neutrality of its production by 2050.

Cezchia: e -grocery business Rohlik gets 90 million euro European Investment Bank loan for growth (28.06.2024) – The European Investment Bank (EIB) is lending 90 million euro to Rohlik, a leading Czech e-grocery business that operates across central and eastern Europe, to bolster the company’s digital advances and growth prospects. Rohlik plans to use the EIB credit to deploy advanced digital technologies and expand into new markets across Europe. The company will benefit from a guarantee under the InvestEU programme that supports research, development, innovation, and scaling-up of digital technologies and services, in particular through artificial intelligence, robotics and automation.

Romania: Banca Transilvania signs its first synthetic securitisation, supporting new lending to SMEs and mid-caps (27.06.2024) – The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund

(EIF), has strengthened the long-term co-operation with Banca Transilvania (BT) by approving a synthetic securitisation and new lending commitments. The landmark transaction is BT’s first securitisation transaction and represents the first capital relief transaction between BT and the EIB Group. The agreement aims to provide capital relief for BT in relation to a portfolio of assets subject to the standardised approach, freeing up lending capacity that will be used to support Romanian small and medium-sized enterprises (SMEs) and mid-caps.

Spain: European Investment Bank and CEPSA sign 285 million euro loan to finance the construction of a second-generation biofuels plant (27.06.2024) – The European Investment Bank (EIB) and Cepsa sign a 285 million euro loan agreement for the construction of an advanced biofuels plant to be located next to the ¨La Rábida Energy Park¨ in Palos de la Frontera, Andalusia.The plant, which Cepsa is building together with Bio-Oils, will produce sustainable aviation fuel (SAF) and renewable diesel (HVO), from organic waste such as used cooking oil or from agricultural waste, advancing the circular economy. Once operational, the facility is expected to process as much as 600,000 tonnes of waste and produce up to 500,000 tonnes of second-generation biofuels annually.

Sweden: EU backs Tele2 to reach near-universal 5G coverage (27.06.2024) – The European Invest Bank (EIB) is providing Tele2 with a 140 million euro loan to support deployment of the 5G network and upgrade of 4G in Sweden. Tele2 will use the loan to roll out a state-of-the-art 5G mobile network in Sweden with the goal of reaching 99.9% of the country’s population. In 2016, the EIB supported Tele2 with a 125 million euro loan to build a 4G network in Sweden.

Romania: European Investment Bank moves to support businesses and municipalities as Vice-President Tsakiris visits Bucharest (27.06.2024) – The EIB signed guarantee agreements with Banca Comerciala Romana, Raiffeisen Bank and UniCredit Bank under the Resilience and Recovery Fund Romania. The guarantees totalling 98 million euro with the three banks aim to help Romania’s large enterprises, including large mid-caps, and small municipalities invest in climate action and the digital transformation. The guarantees will enable the partner banks to offer more favourable loan terms, triggering as much as 750 million euro in new lending.


EUROPEAN INVESTMENT FUND (EIF)

Croatian and Slovenian researchers gain innovation support with 49 million euro in European Investment Fund led financing (15.07.2024) – The European Investment Fund (EIF) becomes cornerstone investor in first technology-transfer fund in Croatia and Slovenia with involvement of development banks HBOR and SID Banka Vesna Deep Tech Venture Fund secures 49 million euro for commercialization of research projects and protection of intellectual property at universities and research institutions. EIF provides 40 million euro to new fund, with other investors offering a combined 9 million euro.

The European Investment Fund supports a new fund to invest in social impact companies in Spain and the EU (10.07.2024) – The European Investment Fund (EIF) has signed a 20 million euro investment in Creas Impacto II, a new fund launched by CREAS, a pioneer fund manager in impact investing in Spain. This new vehicle, with a target size of 70 million euro, is a further effort by CREAS to invest in and support Europe’s best social impact companies in areas such as empowering people through education and inclusive employment; caring for vulnerable people, with a focus on elder care; and building regenerative models for climate change mitigation and adaptation.

Spain: the European Investment Fund vests 350 million euro in Kembara, a Deep Tech and climate growth fund under the European Tech Champions Initiative (08.07.2024) – The European Investment Fund (EIF) commits 350 million euro to Kembara Fund I FCR, a 1 billion euro target-size pan-European fund with a strong focus on Deep Tech and climate, managed by Spain-based Alma Mundi Ventures SGEIC (Mundi Ventures). Kembara has been chosen as one of the platforms to scale European Deep Tech and climate champions as part of the strategic European Tech Champion Initiative (ETCI). This is the first ETCI investment in a Spain based fund and it marks a pivotal moment in Europe’s Deep Tech funding landscape.

Netherlands: Circular firms to gain from 30million euro additional funds for Polestar Capital fund (04.07.2024) – The European Investment Fund has committed 30 million euro to Polestar Capital’s Circular debt fund (PCDF) backed by InvestEU and the Dutch Alternative Credit Instrument in which the EIF participates together with Dutch national promotional institution Invest-NL. A further 13 million euro has been committed by Realdania, Oost NL and Polestar Capital itself. Regional Development Agency Oost NL invested in PCDF from Participatiefonds Oost NL and Perspectieffonds Gelderland, a fund from the province of Gelderland managed by Oost NL.

Spain: the European Investment Fund invests 22.5 million euro in Global Social Impact Fund II to back social impact-related business projects in Spain (04.07.2024) – The European Investment Fund (EIF) is investing 22.5 million EURO in Global Social Impact Fund II (GSIF Spain), managed by Global Social Impact Investments (GSI). The pledge by the EIF makes it the lead investor in this Spain-focused social impact fund backed by InvestEU programme. The fund invests in small businesses improving livelihoods of people at risk of economic and social exclusion. Companies involved have strong business models, high growth potential and consolidated management teams.

Denmark: the European Investment Fund and Danish corporate bank to provide over 175 million euro in new, cheaper, loans to Danish SME (03.07.2024) – The European Investment Fund (EIF) and Danish corporate bank kompasbank a/s have signed portfolio guarantee agreements to provide at least 175 million euro in new loans to Danish small and medium-sized businesses. The EIF guarantees will allow kompasbank to support Danish companies with improved lending conditions such as reduced interest rates and longer maturities. The agreements are supported by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investments over the period 2021-2027.

The European Investment Fund and NATO Innovation Fund join forces to unlock private capital for Europe’s defence and security future (03.07.2024) – The European Investment Fund (EIF) and the NATO Innovation Fund (NIF) signed a Memorandum of Understanding MoU) to cooperate in supporting the long-term growth of the defence, security, and resilience sectors across Europe. The partnership reflects the shared interest of the NIF and EIF in establishing a framework to support start-ups, small and medium-sized enterprises (SMEs) and midcaps, as well as in enhancing the whole ecosystem by involving all the main stakeholders.

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