- This operation is the first EIB loan to the Principality of Andorra.
- The investments will help accelerate the Principality’s energy transition and represent a major step towards its energy self-sufficiency.
- The loan supports the EIB’s strategic priority of climate action and will contribute to reducing Europe’s dependence on fossil fuel imports.
The European Investment Bank (EIB) has approved a €60 million framework loan to finance the energy transition in Andorra. The EIB and the Principality of Andorra have signed the first tranche of the loan for €30 million.
The project includes investments in renewable energy generation as well as in electricity transmission and distribution networks. Investments will also be made in district heating and cooling networks and systems.
This is the first loan that the EIB has signed with Andorra. The operation will help accelerate the Principality’s green transition and improve its energy security by supporting strategic projects, developed mainly by Forces Elèctriques d’Andorra (FEDA). The investments will enable a move towards a more sustainable energy model, while also helping to reduce Andorra’s dependence on energy imports.
The loan comes on favourable financial terms, in line with what the EIB offers European countries with the same credit rating as Andorra. The operation will thus increase and diversify the pool of international financing for the Principality.
The project will serve the climate action objectives set out in the EIB Group’s Strategic Roadmap for 2024-2027 and phase two of the Climate Bank Roadmap for 2026-2030.
Background information
EIB Group
The EIB Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
In 2025, the EIB Group completed financing and investment operations in Spain totalling around €11 billion, which came alongside an additional €2.9 billion under the Regional Resilience Fund (NextGenerationEU loans).
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
In 2023, the EIF together with six Member States (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund-of-funds to scale up innovative startups. This initiative has already enabled the creation of 14 European venture capital mega funds and scaled up 40 companies, including 11 unicorns (with more than €1 billion in capital).
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