Europe’s wind power is to be significantly expanded. The EU development bank is now guaranteeing Deutsche Bank a three-digit million amount. This sum is the start of a project worth billions.
The European Investment Bank (EIB) is supporting billions of euros in investments in the expansion of wind power in Europe. A first counter-guarantee of 500 million euros will be granted to Deutsche Bank, according to a press release. This will enable Deutsche Bank to set up a portfolio of bank guarantees of up to one billion euros for new investments in wind farms in the EU, it said. The EU development bank’s counter-guarantees serve to share the credit risks with the commercial banks.
The transaction is the first project under the EIB’s wind power support plan, which was approved in December. Deutsche Bank will provide bank guarantees for wind energy manufacturers. This will enable manufacturers to receive advance payments and provide performance guarantees: “Manufacturers will thus be able to pay their suppliers in advance, for example for components such as turbines, grid connection infrastructure, cables and voltage converters,” it said. In total, the EIB will provide five billion euros to commercial banks so that they can issue bank guarantees to companies in the European wind industry.
The initiative is part of the EU wind power package presented by the European Commission last year. The Brussels authority had presented various measures to promote the expansion of wind power. The EIB is the EU institution for long-term financing. Its owners are the member states. The bank is intended to finance investments that contribute to achieving the EU’s political goals. Most recently, it has been particularly active as a donor for climate protection and for supporting Ukraine.
Source: Stern
