EU Institutions Series: European Investment Bank (EIB) & European Investment Fund (EIF)

Chronicle.lu has compiled a new series of articles dedicated to European institutions, bodies and agencies with a presence in Luxembourg.

Standing alongside Brussels in Belgium and Strasbourg in France, Luxembourg City is one of the European Union’s three official seats. A founding member of the European Union (EU), Luxembourg is known internationally as a business and financial hub and hosts several major EU institutions and other bodies.

Based mainly in Luxembourg-Kirchberg, these institutions shape European law, finance and democratic processes and employ around 15,000 international professionals.

Throughout this series, Chronicle.lu will introduce the main European institutions, bodies and agencies in Luxembourg and explain how they work. This article focuses on the European Investment Bank (EIB) and the European Investment Fund (EIF).

The EIB Group is the collective organisation of the EIB and the EIF. Together, they form the EU’s main financial institution for supporting investment, innovation and development across Europe.

The EIB is located on Boulevard Konrad Adenauer in Luxembourg-Kirchberg. It was established in 1958 under the Treaty of Rome and was part of the creation of the European Economic Community. At the time, the role of the bank was to provide financing in the form of loans for Europe's infrastructure projects. Its key functions today include lending for large-scale projects in EU member states and beyond, providing support for EU policies, working with commercial banks and investors to provide co-financing and offering advisory services in the structuring and implementation of projects. The EIB is managed by its President, who is appointed for a term of up to five years. The current President, Nadia Calviño, was appointed on 1 January 2024. 

The EIF is located on Avenue John F. Kennedy in Luxembourg-Kirchberg. It was established in 1994 by the European Community, the EIB and private financial institutions from twelve European countries. The EIF focuses on improving access to finance for SMEs and micro-enterprises, providing loan guarantees to banks and other financial intermediaries who lend to SMEs, supporting small loans to entrepreneurs and social enterprises and taking on risk to encourage private investment in projects. The EIB is the majority shareholder of the EIF, whose other shareholders include the European Commission, as well as public and private financial institutions. The EIF is managed by its Chief Executive, who is appointed for a term of up to five years. The current Chief Executive, Marjut Falkstedt, was officially appointed on 1 January 2023.

According to its 2025 annual report, the EIB Group reached a historic milestone in 2025 by providing €100 billion in new financing, as well as setting records in financing for energy grids, technological innovation, housing and security and defence. According to the EIB Group, nearly 60% of total financing was allocated to green projects, ranging from large energy grids and interconnectors to renewable energy deployment, tech research and decarbonising heavy industry. Supplementing the EIB’s large-scale efforts, the EIF delivered close to €16 billion in guarantees and equity finance for small businesses and startups across Europe.

A key implementing partner of the European Commission to mobilise EU budget guarantees, instruments and mandates, the EIB Group is active in every corner of the European Union and in more than 160 countries across the world. Through its loans and guarantees, the EIB Group leverages each euro of EU funds to mobilise €15 of investment on average, helping to support projects with measurable economic and social impact.

The EIB Group commits around 90% of its total financing to projects inside the European Union, with around 10% going to projects outside the European Union. The EIB Group states that this financing contributes to global development and also helps to establish and develop partnerships which strengthen Europe’s standing in the world. As a public EU institution, the EIB Group is subject to the highest international standards of governance, transparency and accountability.

Luxembourg-based satellite connectivity provider OQ Technology has recently received €25 million in venture debt financing from the European Investment Bank (EIB) to support its growth and technology development. According to the EIB, the financing will help OQ Technology to develop its satellite technology and expand its services, with support from the European Commission’s InvestEU programme, which works to encourage investment in innovation and sustainable growth across Europe.