Greek Firms Get €250 M Financing Boost as EIB and NBG Back Defence Investment

At least 50% of the financing will be directed towards eligible security and defence investments, giving the sector a central place in the agreement.

Greek businesses seeking money to invest and expand are set to gain access to more favourable financing through a new €250 million package from the European Investment Bank (EIB) and the National Bank of Greece (NBG), with security and defence receiving a substantial share of the support. The agreement covers small and medium-sized enterprises (SMEs) and mid-sized companies, known as Mid-Caps, helping them fund new investments, meet working capital needs and strengthen their ability to compete.

The package marks the first dedicated security and defence cooperation between the two banks, building on a partnership that has delivered around €2.5 billion in operations over the past five years. Its focus reflects the financing difficulties businesses in this sector can face, particularly smaller companies that need funding to develop their activities and turn ideas into commercially viable opportunities.

At Least Half the Funding Targets Security and Defence

At least 50% of the financing will be directed towards eligible security and defence investments, giving the sector a central place in the agreement. For businesses struggling to secure finance, access to funding on more favourable terms could support investment decisions and expansion plans, with the package designed to help companies strengthen their competitiveness as Europe seeks to reinforce its security and defence industry.

EIB Vice-President Yannis Tsakiris linked Europe's security ambitions to the businesses capable of supplying the necessary ideas, technology and industrial capacity. He said the agreement would help Greek companies obtain the financing they need to invest, innovate and grow, describing the transaction as a European first that demonstrates Greece's potential contribution to a stronger and more resilient European security and defence industry.

A €200 Million Operation Opens a New Financing Channel

The largest part of the package is €200 million in EIB financing through an NBG covered bond, making this the first EIB security and defence financing operation delivered through that structure. Covered bonds are already an established financial market instrument, and this agreement puts them to a new use as a channel for directing EIB-supported funding towards eligible security and defence investments.

The transaction is the EIB's first covered bond-based financing operation with a Greek bank since 2019, giving it significance beyond the companies expected to benefit. It will provide NBG with long-term funding, broaden its funding sources and support renewed use of covered bonds in the Greek market, helping the bank make additional financing available to eligible businesses for investments and working capital.

A €50 Million Guarantee Helps Share Lending Risk

A separate €50 million EIB guarantee completes the package, sharing part of the risk associated with new financing that NBG provides to eligible Mid-Caps in the security and defence sector. This risk-sharing arrangement will allow more financing to reach companies in an area the banks regard as strategically important, complementing the funding supplied through the covered bond operation.

NBG Chief Executive Officer Pavlos Mylonas said the partnership supports Europe's objectives of strengthening security, defence and strategic resilience by helping innovative Greek SMEs and Mid-Caps invest, grow and compete. He described NBG's participation as a contribution to the broader European effort to strengthen the continent's defence industrial base, with the agreement deepening the banks' established cooperation and connecting Greek business investment with Europe's wider industrial priorities.