KBC enhances focus on sustainability investments by Belgian SMEs with new EIB facility

• The European Investment Bank and Belgian bank KBC team up to make available a €600 million facility of new financing for small and medium-sized Belgian companies.
• Local SMEs will be able to get lower interest rates thanks to the EIB backing, the focus of the newly available lending is on sustainability investments.
• Apart from climate relevant investments, one fifth of the facility is earmarked for companies in Belgian cohesion regions.

KBC and the European Investment Bank continue their longstanding partnership with a new loan facility aimed at improving access to finance and supporting sustainability investments by small and medium sized Belgian businesses. Through a €300 million EIB loan, which KBC will match with its own funds , €600 million in additional lending will become available for Belgian SMEs seeking to make their activities more environmentally sustainable . The €600 million facility comes on top of KBC’s regular business for Belgian companies and the final decision on loans awarded under this facility rests with KBC

EIB Vice President Robert de Groot: "Partnerships like this one with KBC are essential for advancing the EIB's goal of supporting SMEs. This collaboration ensures that Belgian SMEs are better able to seize new opportunities. By providing accessible and affordable financing, we empower them to grow and innovate, while also contributing to a greener and more resilient economy.

Through KBC’s network, the new financing will be available to all small and medium sized companies in Belgium to finance sustainability investments such as water extraction and recycling, renewable energy, energy efficiency, transport or other climate related projects . Some 20% of the facility is earmarked for lending in so called “cohesion ​ regions"*

Wim Eraly, Senior General Manager Commercial Banking KBC Belgium Division : "The impact of climate change represents one of the biggest challenges for our society. Large and small companies will have to adapt in the relatively short term to reduce their ecological footprint. They can do this by investing in sustainable solutions and resources. Take water, for example, a particularly valuable but scarce resource. In Belgium, we depend on rain and cannot rely on large watercourses like in our neighbouring countries. Companies looking to invest in sustainable solutions can turn to KBC for advice. As a bank, insurer and asset manager, we can help support companies in their transition to a greener economy. After all, this is embedded in our business strategy. The joint programme of KBC and the EIB makes financing sustainable investments much more attractive for Belgian companies and thus contributes directly to a more sustainable society."

The relationship between the EIB Group (meaning the EIB and its subsidiary the European Investment Fund) and KBC dates back to the 1990’s, the EIB alone has so far provided over €2,3 billion in attractive lending to KBC.

* This refers to regions with a GDP per capita under 75% of the EU average.