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EIB and BNP Paribas sign €700 million grid guarantee deal - Finance news and analysis from Global Banking & Finance Review
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EIB and BNP Paribas sign €700 million grid guarantee deal

Published by Global Banking & Finance Review

Posted on September 29, 2026

2 min read

· Last updated: September 29, 2026

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EIB and BNP Paribas Secure €700 Million Guarantees for EU Electricity Grids

Major Agreement to Boost EU Electricity Grid Investment

Sept 29 (Reuters) - The European Investment Bank and BNP Paribas have signed an agreement to mobilise €700 million in guarantees for European electricity grid manufacturers, backed by €350 million in counter-guarantees from each party, BNP said on Tuesday.

Support from the European Union's InvestEU Programme

The deal, supported by the European Union's InvestEU programme, is part of a broader €1.5 billion package to develop and modernise EU energy grids. It follows a separate €1 billion wind energy guarantee portfolio signed by the two institutions in February 2025.

Key Details of the €700 Million Guarantee Portfolio

  • The €700 million guarantee portfolio is expected to stimulate up to €2.8 billion of investment in the real economy
  • The agreement will expand BNP Paribas' capacity to finance manufacturers of electricity grid components as demand rises from the energy transition
Integration with Pan-EU Power Grid Package
  • The deal is part of the EIB's Pan-EU Power Grid package, a €1.5 billion initiative to develop, modernise and strengthen EU energy grids
  • The EIB Group invested €33 billion in energy projects worldwide in 2025, including €11.6 billion in grids and storage, EIB Vice-President Ambroise Fayolle said
  • The grid initiative follows €6.5 billion previously made available by the EIB for wind energy
Reporting and Editorial Credits

(Reporting by Charlotte Van Campenhout. Editing by Mark Potter)

Key Takeaways

  • The €700 million guarantee facility—with equal €350 million counter‑guarantees from EIB and BNP—aims to enable BNP Paribas to scale up financing for electricity grid component makers amid rising demand.
  • As part of the EIB’s €1.5 billion Pan‑EU Power Grid package under InvestEU, this deal complements a previous €1 billion wind energy guarantee signed in February 2025, reinforcing EU grid and clean‑tech capacities.
  • In 2025, the EIB Group achieved record financing in energy, committing approximately €33 billion to Europe’s energy security, including around €11.6 billion for grids and storage—underlining the strategic role of such guarantee schemes in unlocking broader investment.

References

Frequently Asked Questions

What is the value of the guarantee deal between EIB and BNP Paribas?
The deal covers €700 million in guarantees for European electricity grid manufacturers.
What is the purpose of the €700 million guarantee portfolio?
It aims to stimulate up to €2.8 billion of investment and support the development and modernisation of EU energy grids.
Which initiative supports this agreement between EIB and BNP Paribas?
The InvestEU programme, part of the EIB's €1.5 billion Pan-EU Power Grid package, supports this deal.
How does this deal relate to previous energy investments?
It follows a €1 billion wind energy guarantee portfolio signed earlier in February 2025 and builds on €6.5 billion previously made available by the EIB for wind energy.
What was the EIB Group's total investment in energy projects in 2025?
The EIB Group invested €33 billion in energy projects, including €11.6 billion in grids and storage.

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