The European Investment Bank (EIB) and Paris-based financial services group Societe Generale announced a new cooperation agreement to collaborate on financing fast-growing cleantech companies, backed by €250 million in guarantees from the EIB.
Under the new initiative, the EIB and Societe Generale look to finance and support innovative, fast-growing small and mid-cap companies active in the cleantech sector. targeting companies that promote areas including the decarbonization of the economy, the sustainable use and protection of natural resources, the transition to a circular economy, the development of a sustainable bioeconomy, and the prevention and control of pollution of the natural environment.
According to the EIB and Societe Generale, the new collaboration comes in response to persistent challenges faced by early-stage cleantech companies whose long production and sales cycles often make it difficult to secure working capital on affordable terms.
Jean-Christophe Laloux, Director General for EU Operations for the EIB, said:
“We are very happy to sign our first Memorandum of Cooperation on clean technologies with Societe Generale, and we look forward to jointly supporting the scale-up of European companies. As Europe’s climate bank, the EIB considers the development of the cleantech sector as an essential tool to make the green transition a success.”
The partnership will help to unlock working capital financing for these companies, backed by the EIB guarantees from InvestEU – the European Commission’s programme for innovation and sustainability – which will serve as collateral for start-ups and scale-ups seeking instruments such as advance payment or performance bonds.
With this structure in place, Societe Generale then plans to speed up its support for companies identified as emerging leaders within the bank’s environmental transition financing efforts, which was launched last year.
The new agreement follows the launch of a collaboration earlier this year between the EIB and Societe Generale, aimed at financing and supporting manufacturers across the wind energy supply chain in Europe.
Lénaïg Trenaux, Global Co-Head of Energy, Battery, Mining and Industries – Sustainable and Impact Advisory – at Societe Generale, said:
“This partnership reflects Societe Generale’s contribution to advancing the environmental transition. By joining forces with the EIB, we are reinforcing our action and helping emerging energy transition leaders to get the financing they need to grow and deliver impactful low-carbon solutions in Europe.”
