Bank Leumi and the European Investment Bank to Provide 500 Million Euro to Support Green Investment by Israeli SMEs

Rhea-AI Summary

Bank Leumi has signed a strategic agreement with the European Investment Bank (EIB) to secure a EUR 500 million credit line aimed at supporting SMEs in Israel. This initiative, part of Leumi's broader strategy, focuses on financing green and environmental projects, with a target of providing NIS 35 billion in green credit by 2030. As of 2021, Leumi's green credit outstanding totaled NIS 12 billion. Additionally, the bank raised USD 500 million in early 2023 through Tier 2 Subordinated Green Notes, further facilitating eco-friendly investments.

Positive

• Strategic cooperation with the EIB to enhance SME support.
• EUR 500 million credit line designed for green project financing.
• Long-term goal to provide NIS 35 billion in green credit by 2030.
• Recent issuance of USD 500 million in green bonds to fund eco-friendly projects.

Negative

• None.

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.

For more information visit the investor relations page on our website or contact Michael Klahr, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il

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SOURCE Bank Leumi

FAQ

What is the significance of the EUR 500 million credit line for Bank Leumi and BLMIF?

The EUR 500 million credit line from the EIB will significantly enhance Bank Leumi's ability to support green investments and SMEs in Israel.

What are Bank Leumi's green investment targets by 2030?

Bank Leumi aims to provide NIS 35 billion in green credit by 2030 to support climate and environmental projects.

How much green credit did Bank Leumi provide by the end of 2021?

By the end of 2021, Bank Leumi had provided NIS 12 billion in outstanding green credit.

What type of bonds did Bank Leumi issue in early 2023?

In early 2023, Bank Leumi raised USD 500 million through Tier 2 Subordinated Green Notes, known as CoCo Bonds.

What is the role of the European Investment Bank in this agreement?

The EIB is providing the credit line aimed at financing climate action projects and supporting SMEs in Israel.