the EU bank

The EIB’s loan portfolio is funded mainly by issuing bonds on the international capital markets. With an annual funding volume of around EUR 50-55 billion, the EIB is among the world’s top 10 largest issuers in the international capital markets.

Through its funding activities, the Bank also contributes to the goal of sustainable development – the subject of this section. Further details on the broad appeal of EIB bonds to SRIs are provided in the Investor Relations section of the website.

Development of the capital market in emerging currencies

The Bank has a long-standing track record of contributing to the development of the international capital markets.

In emerging currencies the Bank has in particular focused on currencies of new/future EU Member States and the EU partner countries. Here the Bank’s concrete contribution relates both to development of the framework for issuance according to international standards and also to execution of issuance that adds diversity to the market.

For instance, the Bank may offer more liquid alternatives, new maturities and products. The EIB is often the first foreign issuer or the first in its asset class to enter such markets.

Such issuance may also provide a step towards potential future lending in local currency, and the removal of foreign exchange risk can be an important benefit for loan customers.

Among partner countries in the developing world, selected African markets have been a key focus in recent years. In Africa, under the 2000 Cotonou Partnership Agreement, the EIB complements its lending activities through its issuance activities in regions where it has been a development partner for decades. Such bond issues give the EIB the opportunity to expand its presence in African partner country currencies in a way that contributes to the development of the local capital market, both by directing international investors’ attention to African debt markets and by providing top-quality alternatives to local investors in markets with very limited supply.

Innovative transactions supporting EU objectives

The EIB also leverages the capital markets to contribute to other EU initiatives. An important area in recent years has been support for the integration of EU capital markets, notably for the benefit of retail investors. Thanks to its multilateral dimension, the EIB is a natural vehicle for delivering certain advantages of European financial integration in the capital markets.