European Union: The European Investment Bank (EIB) and BNP Paribas have signed a risk-sharing agreement to establish a guarantee portfolio of up to $795 M (€700 M), aimed at supporting European manufacturers of electricity grid equipment.
Under the agreement, the EIB will provide up to $397 M (€350 M) in counter-guarantees, while BNP Paribas will commit an equivalent amount. The arrangement will increase the bank’s capacity to issue guarantees on behalf of manufacturers supplying components for electricity grids across the EU.
The EIB estimates that the mechanism could stimulate up to $3.2 B (€2.8 B) in investment in the real economy, helping manufacturers respond to growing demand for equipment required for grid expansion and modernisation.
EIB Vice-President Ambroise Fayolle said the agreement builds on the institutions’ previous cooperation in wind energy and extends their support to companies manufacturing equipment essential for electricity network development.
The initiative forms part of the EIB’s wider $1.7 B (€1.5 B) Pan-EU Power Grid package, supported by the European Union’s InvestEU programme. The package is intended to support the development, modernisation and reinforcement of electricity networks across Member States.
In 2025, the EIB Group invested $37 B (€33 B) in energy worldwide, including $13.1 B (€11.6 B) in electricity grids and storage.
The new agreement follows a separate partnership between the EIB and BNP Paribas signed in February 2025, which established a $1.1 B (€1 B) guarantee portfolio to support investment in wind energy.
Source: EIB
