During the 4^th International Conference on Financing for Development, the European Commission and the European Investment Bank (EIB) announced a new type of guarantee agreement to provide up to €5 billion, aimed at de-risking investments and expanding EIB operations beyond the European Union (EU). This guarantee could unlock up to €10 billion for essential projects in clean energy, green infrastructure, and access to finance for Small and Medium Enterprises (SMEs) in partner countries.

The new guarantee will support a greater number of companies, including those with state participation or public organizations, operating locally or regionally in partner countries outside the EU. Unlike previous guarantees that only supported state-backed projects, this one can also be applied to entities borrowing on their own terms without state backing, making the process more flexible and efficient. Ultimately, the new guarantee aims to facilitate Global Gateway investments by financing public interest projects considered too risky for traditional lenders while ensuring affordable borrowing costs for partner countries.

The guarantee will back investments in energy, infrastructure, economic resilience, and SMEs in North Africa and the Middle East. It will also finance telecommunications and energy infrastructure projects, helping municipalities in the EUs enlargement and Eastern Neighbourhood regions, and significantly contributing to the EUs accession priorities. Additionally, it will support the development of the Transcaspian Corridor in Central Asia, enhance supply chain security for critical raw materials, and advance the Global Gateway Investment Agenda in Latin America and the Caribbean.

Background information

Global Gateway

Global Gateway is the EUs strategy to enhance global connectivity through sustainable partnerships. Launched in December 2021, it aims to mobilize up to €300 billion in public and private investments by 2027 to support projects in digital, climate and energy, transport, health, and education worldwide. The strategy emphasizes developing smart, clean, and secure links while promoting environmental sustainability, social inclusiveness, and democratic values. Global Gateway is Europes response to global infrastructure needs, providing transparent and value-based partnerships to foster economic growth worldwide.

EFSD+

The guarantee announced today falls under the European Fund for Sustainable Development Plus (EFSD+), a vital financing tool for the Global Gateway. It is part of the €26.7 billion guarantee envelope supporting EIB lending outside the EU for the 2021-2027 period.

EFSD+ is part of the European Unions investment framework and the main financial instrument supporting the EUs Global Gateway strategy. EFSD+ guarantees act as a safety net for lenders, covering potential losses if projects fail. If projects succeed, the guarantee remains unused, keeping EU funds available for other projects. In blended finance operations, the EU combines a small grant contribution with loans to attract additional public and private funding, maximizing project impact.

About EIB Global

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.

EIB Global is the EIB Groups specialized arm focused on enhancing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target for this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside other development finance institutions and civil society. EIB Global connects the EIB Group closer to people, companies, and institutions through its offices worldwide. Media use photos of EIB headquarters are available here.