The EU's European Investment Bank (EIB) has signed a memorandum of understanding (MoU) with Bank Leumi (TASE:LUMI) to expand their existing cooperation on green investments. EIB will inject €250 million (NIS 1 billion) to finance projects for small and medium-sized businesses. Among the companies that have received financing like this in the past are Solegreen (TASE: SLGN) and Teralight (TASE: TRLT).
This cooperation began a year ago when Leumi and EIB signed an agreement committing to promote financing for projects for climate change, the environment, society and sustainability. As part of the agreement, Leumi received from the EIB, a line of financing for "green credit" worth €500 million (NIS 2 billion). Now the EIB is adding NIS 1 billion to the amount.
Bank Leumi has set a strategy on climate change and the environment which aims to provide green credit worth NIS 35 billion by 2030. Leumi is ranked in the top 10 of the ESG 100 Index by Israeli consulting firm Entropy Group. The index ranks the 100 top ESG publicly traded companies in Israel. The EIB is one of the world's main financing institutions for Israel's green economy and by 2030 is committed to invest €1 trillion on environmental and climate change issues.
Bank Leumi president and CEO Hanan Friedman said, "The implementation of the next stage in the agreement with the EIB, which we announced today, will allow us to step up the financing of green and social projects. Alongside this collaboration, we are creating additional channels that will allow Leumi to continue to be at the forefront of green banking in Israel."
Published by Globes, Israel business news - en.globes.co.il - on February 1, 2024.
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