GREECE —Greek small and medium-sized enterprises alongside Mid-Caps operating within the security and defence sectors are set to gain expanded access to capital under a €250 million financial framework established through a partnership between the European Investment Bank (EIB) and National Bank of Greece (NBG). The structure deploys €200 million via an EIB-supported covered bond transaction, representing the first time the European Investment Bank (EIB) has utilized covered bonds for defence-focused funding. together with a €50 million risk-sharing guarantee mechanism aimed at bolstering long-term lending and working capital access for eligible firms.
This capital injection directly addresses historic borrowing bottlenecks encountered by dual-use and defence-oriented businesses across Southern Europe, where specialized firms frequently face elevated liquidity constraints relative to conventional commercial sectors. By routing funds through a covered bond structure, the initiative establishes a repeatable blueprint for multilateral development banks to direct targeted capital into European defence industrial capabilities while diversifying funding avenues for commercial institutions.
The agreement reflects broader policy shifts within European Union (EU) financial institutions aimed at strengthening continental strategic resilience, autonomy, and supply chain security. Commercial enterprises across the aerospace, cyber security, advanced manufacturing, and defense technology sectors in Greece stand to secure long-term capital under enhanced terms, incentivizing private sector investment in strategic technologies across the region.
The European Investment Bank (EIB) serves as the lending institution of the European Union (EU), providing long-term capital, guarantees, and advisory services to advance strategic policy priorities. The National Bank of Greece (NBG) is one of the premier financial services organizations in Greece, delivering retail, commercial, and investment banking solutions.
