Deutsche Bank Partners With EIB for €1 Billion Defence Industry Boost
Deal News | Jun 11, 2025 | Deutsche Bank AG
The European Investment Bank (EIB) has significantly escalated its financing efforts to support small and medium-sized enterprises (SMEs) within Europe’s defence sector by expanding available intermediated loans and guarantees from €1 billion to €3 billion. This initiative is aimed at bolstering security across Europe by fortifying the continent's defence industrial base. The inaugural deal under this new financing scheme is with Deutsche Bank, enabling up to €1 billion in financing for security and defence projects. This includes infrastructure for military and police, and research projects, providing essential liquidity to SMEs throughout the EU's defence supply chain. The announcement was made at the European Defence and Security Summit, highlighting the EIB's commitment to address the financing challenges faced by SMEs and mid-caps within Europe's defence ecosystem. This strategic financial stimulus is poised to enhance innovation, reinforce supply chain resilience, and support Europe’s strategic autonomy amid growing geopolitical tensions. Deutsche Bank will leverage this framework loan to extend capital to various stages of the supply chain, from components and technologies to comprehensive advisory and financial support. The expansion reflects substantial interest from commercial banks across Europe to harness the EIB’s resources and invest in the defence sector. It marks the first collaboration with a commercial bank under the expanded lending scheme, with several other partnerships anticipated. This follows recent multilateral agreements between the EIB and national promotional institutions from major EU countries to collaboratively strengthen European defence capabilities through strategic projects. The move is directly aimed at SMEs, addressing traditional funding obstacles they face, an issue less prevalent among larger corporates. The expanded loan envelope, transformative for defence sector SMEs, aims to propel jobs, innovation, and growth within Europe's critical defence manufacturing supplies tier.
Sectors
- Defence Industry
- Banking and Finance
Geography
- European Union – The article discusses financing efforts within the European Union, targeting SMEs that serve as vital suppliers in Europe's defence industry across member states.
Industry
- Defence Industry – This article centers around the European defence industry, highlighting efforts to finance small and medium-sized enterprises within this sector as part of a broader effort to bolster security and defence.
- Banking and Finance – The involvement of Deutsche Bank and the European Investment Bank demonstrates significant banking and financial activity aimed at supporting SMEs in the defence sector through substantial funding.
Financials
- 3 billion Euros – The total amount of intermediated financing the EIB has made available for defence industry projects in Europe.
- 500 million Euros – Specific loan amount provided by the EIB to Deutsche Bank to facilitate the 1 billion Euro financing.
- 1 billion Euros – Amount Deutsche Bank will enable in financing for SMEs in the security and defence supply chain.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| European Investment Bank | Financier | Company | The EIB is the lender aimed at supporting SMEs in the European defence sector through increased financing. |
| Deutsche Bank AG | Financial Partner | Company | Partnered with the EIB to provide financial support to SMEs in Europe’s defence industry. |
| Caisse des Dépôts | Collaborative Financial Institution | Company | France's national promotional institution collaborating with the EIB. |
| Kreditanstalt für Wiederaufbau (KfW) | Collaborative Financial Institution | Company | Germany's national promotional institution collaborating with the EIB. |
| Cassa Depositi e Prestiti (CDP) | Collaborative Financial Institution | Company | Italy's national promotional institution collaborating with the EIB. |
| Bank Gospodarstwa Krajowego (BGK) | Collaborative Financial Institution | Company | Poland's national promotional institution collaborating with the EIB. |
| Instituto de Crédito Oficial (ICO) | Collaborative Financial Institution | Company | Spain's national promotional institution collaborating with the EIB. |