- Deutsche Kreditbank (DKB) receives EIB financing of €100 million to back energy transition investments.
- Together with DKB loans, at least €200 million is to be invested in onshore wind and solar projects.
The European Investment Bank (EIB) will provide a framework loan of €100 million to Deutsche Kreditbank (DKB) to finance onshore wind and solar photovoltaic projects in Germany. Using the EIB loan, DKB will invest at least €200 million to support companies that are setting up small and medium-sized green energy projects, with investment costs of up to €50 million for the individual sub-projects.
The operation is the first project with DKB that focuses exclusively on renewable energy projects. Half of the EIB’s lending is expected to be allocated to German onshore wind and the other half to German solar photovoltaic projects. Based on typical wind and solar projects in Germany, it is estimated that the investments will result in about 171 megawatts of new electricity generation capacity from renewable sources, with an annual production of around 350 gigawatts a year.
The EIB loan offers competitively priced long-term financing for small and medium-sized onshore renewable energy projects. In addition, the funds will enable project owners to enhance their financing structure in line with the long economic lifetime of the financed assets.
The operation will contribute to the objectives of the REPowerEU plan, which is backed by the EIB Group, by rolling out clean energy capacity to support the European Union’s energy independence and security of supply. Speeding up the green transition and promoting investment in renewable energy is one of the priorities of the plan.
EIB-Vice President Nicola Beer, who oversees EIB financing in Germany, said: “We are glad to support DKB’s first EIB-related lending programme that exclusively targets renewable energy projects, especially those of small and medium companies. This will help to decarbonise the energy sector to reach the EU goal of net zero by 2045, making the lives of Europeans better step by step.”
DKB Chief Executive Officer Stefan Unterlandstättner said: “DKB has been financing renewable energy projects for more than 30 years and is one of the leading financiers of the energy transition in Germany. We are pleased to be working closely with the EIB to support our customers and accelerate efforts to switch to green energy generation in Germany through the expansion of wind and solar power supply.”
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation and adaptation, and to a healthier environment. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
Deutsche Kreditbank AG (DKB)
Deutsche Kreditbank AG (DKB), headquartered in Berlin, is part of the BayernLB Group and serves business and private customers. With total assets of €118 billion (as of 30 June 2023), it is one of the top 20 banks in Germany. Around 5.4 million people are DKB customers. They conduct their banking transactions conveniently and securely online. DKB’s industry experts personally support business customers at 26 DKB locations throughout Germany. As a partner to companies and local authorities, the bank specialises in promising sectors in Germany at an early stage: housing, healthcare, education, agriculture, infrastructure and renewable energy. DKB attaches great importance to sustainable action: as a #geldverbesserer, it therefore focuses on a sustainable lending business.