Bank Leumi And EIB Partner For EUR 500 Million Credit Line To Boost Green Initiatives In Israel

In a significant move towards sustainable finance, Bank Leumi and the European Investment Bank (EIB) have officially entered into a strategic cooperation agreement. Under this collaboration, the EIB commits to providing a substantial EUR 500 million credit line to Bank Leumi, earmarked for extending preferential credit terms to Small and Medium Enterprises (SMEs) across Israel. Notably, this credit line marks the EIB’s inaugural targeted support for climate action business financing within Israel.

Bank Leumi’s commitment to environmental stewardship is embedded in its long-term strategy, aiming to fortify support for climate and environmental issues. As part of this strategy, the bank has set an ambitious target of providing green credit totalling NIS 35 billion by the year 2030. At the close of 2021, Leumi’s green credit outstanding to customers stood at NIS 12 billion.

In the early months of 2023, Bank Leumi successfully raised USD 500 million from prominent global institutional investors through the issuance of Tier 2 Subordinated Green Notes, commonly known as CoCo Bonds. The proceeds from this issuance are earmarked to finance eco-friendly projects, aligning with the bank’s commitment to sustainable initiatives.

The European Investment Bank recognized as one of the largest financiers of the global green economy, has pledged an ambitious investment goal of EUR 1 trillion in climate-related projects by 2030. This strategic cooperation with Bank Leumi reinforces the EIB’s focus on climate, environment, infrastructure development, and support for SMEs in recent years.

The agreement underscores a shared commitment to fostering green investments, supporting SMEs in their sustainability endeavors, and contributing to Israel’s broader climate action goals. The collaboration is poised to drive positive environmental impacts and stimulate sustainable business practices across the country.