The Board of Directors of the European Investment Bank (EIB) approved an updated definition of dual-use goods and infrastructure eligible for EIB Group financing.

It also agreed to facilitate financing for smal-l and medium-sized enterprises (SMEs) in the security and defence industry, by opening up dedicated intermediated financing. 

Boosting EIB Group support to safeguard Europe’s peace and security is one of the top strategic priorities, outlined by President Calviño to EU Finance Ministers in February. 

Following intensive consultations with the Bank’s shareholders, financial markets and key stakeholders, and the European Council’s mandate to further improve access to finance for European security and defence firms, President Calviño unveiled an immediate Security and Defence Industry Action Plan at the last EU Finance Ministers meeting (ECOFIN), where the initiative received broad support.

Friday’s Board of Directors meeting formally adopted the Action Plan. Going forward, the EIB will waive a previous requirement that dual-use projects eligible for financing in the area of security and defence derive more than 50% of their expected revenues from civilian use. 

Projects and infrastructure used by the military or police that also serve civilian needs will now be eligible for EIB Group financing. There will no longer be a minimum threshold for expected revenues from civilian applications or share of civilian users.

Also read: EDF | Greece in 5th place for funding from European Defence Fund

The EIB Group will also update its rules for security and defence SME financing. This will open dedicated credit lines managed by banks in EU Member States and other intermediaries for dual-use projects by smaller companies and innovative startups. EU companies whose activity is partly in defence will be eligible for financing using EIB-backed intermediated credit lines. No further changes were made to the EIB Group’s eligibility, excluded activities and excluded sectors list.

The EIB Group has created a dedicated Security and Defence Office, providing a one-stop shop for security and defence investment, operational since 1 May 2024. It offers streamlined financial support and expert assistance aimed at strengthening Europe’s security and defence capabilities.

The changes are expected to speed up investment and improve access to EIB Group financing for the European security and defence sector, deploying €6 billion in funding available under the Strategic European Security Initiative (SESI), and the European Investment Fund’s (EIF) Defence Equity Facility, and further boosting the EIB Group’s already considerable support to the European security and defence industry.

The EIB Group has been actively supporting investment that reinforces Europe’s defence and security industry since 2017. Beneficiaries of EIB Group financing range from household names in the defence sector to innovative startups.

Under its Strategic European Security Initiative (SESI), expanded immediately after Russia’s aggression against Ukraine, there still is €6 billion in funding available. In addition, the EIF launched a  €175 million Defence Equity Facility in January 2024, which can support SME and start-ups in the field, such as those in the area of cybersecurity.

Eligible projects under SESI will include military mobility, space, cybersecurity, green security, critical infrastructure, border protection and other dual-use investments, such as drones. 

Also read: INVESTING IN DEEP-TECH: DUAL-USE TECHNOLOGIES | The NIF and DIANA in Greece