1 week Ago
The EuropeanInvestment Bank (EIB) has extended a 500 million eurocounter-guarantee to German Commerzbank AG, reports. According to the bank, this deal is part of the EIB’s 5 billioneuro initiative designed to help manufacturers of wind-energyequipment and facilitate investment in new wind farms across theEU. With this counter-guarantee, Commerzbank will be able to offerup to 1 billion euros in banking guarantees for wind-energyprojects.
This transaction marks the second operation in Germany under theEIB's December 2023 plan to enhance the provision of commercialbank guarantees for the European wind industry. The EIB’s Vice-President, Nicola Beer, emphasized that thecooperation with Commerzbank aims to strengthen the European windenergy supply chain, supporting jobs and promoting decarbonizationthrough innovation. Commerzbank will use the EIB’s backing to provide bankingguarantees to wind-energy manufacturers, enabling them to secureadvance payments and performance guarantees for projects, includingwind turbines and associated infrastructure like grid connectionsand transformer stations.
The 1 billion euro guarantee facility isexpected to catalyze up to 8 billion euros in privateinvestment. Wind energy is vital for the EU’s renewable energy goals, withthe EIB’s initiative expected to contribute to the construction of32 GW of wind capacity, a key component of the EU’s target of 45%renewable energy by 2030..
