EIB and Deutsche Bank Join Forces to Propel Europe's Wind Energy Sector

The European Investment Bank (EIB) is activating a €5 billion initiative to support manufacturers of wind-energy equipment in Europe by extending a €500 million counter-guarantee to Germany-based Deutsche Bank AG.

The transaction will enable Deutsche Bank to set up a portfolio of up to €1 billion of banking guarantees for new investment in wind farms in the EU.  

“A quick build-up of wind power is crucial for decarbonising the economy,” said EIB Vice-President Nicola Beer. “Together with Deutsche Bank, we are promoting the expansion of renewable energy in Europe and in that way bringing the price of sustainable energy down. The respective project will also help to safeguard and create jobs in a sustainable and competitive European industry.”

The EIB’s counter-guarantees under its €5 billion initiative are designed to share credit risks faced by commercial banks when dealing with players in the wind industry. The instrument facilitates access to advance payment and performance guarantee lines, benefitting both the banks and the industry.

In this initial project, Deutsche Bank will use the EIB`s backing to provide banking guarantees to wind-energy manufacturers. This will enable the manufacturers to receive advance payments as well as to provide performance guarantees when taking on new wind projects. The guarantee scheme also enables manufacturers to pay their suppliers in advance for the supply of wind farms and the related wind value chain components, which include turbines, grid connection infrastructure, cables and transformer stations.  

The EIB-Deutsche Bank €1bn guarantee facility is estimated to initiate private investments of up to €8 billion.

“The acceleration as well as the overall magnitude of the energy transition require massive investments but also collateral and guarantee requirements. Our accord with the EIB provides tangible additional guarantee volumes for wind manufacturers to win and perform the substantial amount projects”, said Alexander von zur Muehlen, CEO of Asia Pacific, Europe, Middle East & Africa (EMEA) and Germany and Member of the Management Board at Deutsche Bank. "These partnerships between public actors and the private sector will be a cornerstone for financing the success of the digital and sustainable transformation”, said von zur Muehlen.