Bank Leumi and the European Investment Bank to Provide 500 Million Euro to Support Green Investment by Israeli SMEs
TEL AVIV, Israel , Feb. 7, 2023 /PRNewswire/ -- Bank Leumi (TASE: LUMI) and the European Investment Bank (EIB) announced today that they have signed a strategic cooperation agreement. Under the agreement, the EIB will provide a EUR 500 million credit line to Bank Leumi. This will be used to provide credit on preferential terms to SMEs across Israel, including supporting new investment in green and environmental projects. This represents the first targeted support for climate action business financing in Israel by the EIB.
The agreement with the EIB is part of Leumi's long-term strategy to strengthen support for climate and environmental issues, in which the Bank has set a target for providing green credit totaling NIS 35 billion by 2030. As of year-end 2021, Leumi's green credit outstanding provided to customers was NIS 12 billion. In the beginning of 2023, Leumi raised USD 500 million from leading global institutional investors following the issuance of Tier 2 Subordinated Green Notes (CoCo Bonds). The proceeds of the issuance will be used by the Bank to finance eco-friendly projects.
The EIB is the European Union's investment bank, financing and investing in projects around the globe that achieve the policy goals of the EU. In recent years the EIB has focused on the areas of climate, environment, development of infrastructures and support for SMEs
Today, the EIB is considered to be one of the largest financiers of the green economy in the world. The Bank has pledged to invest EUR 1 trillion in climate-related projects by 2030.
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SOURCE Bank Leumi