EIB and National Bank of Greece Launch €250 Million Defence Funding

The initiative targets small and medium-sized enterprises alongside mid-caps, providing essential liquidity for innovation and capital expansion. By directing 50% of the funds toward defence-related projects, the banks hope to bridge the financing gap that often hampers smaller firms from turning emerging security technologies into viable industrial output. EIB Vice-President Yannis Tsakiris noted that this transaction represents a European first, signaling Greece's growing role in hardening the continent’s defence supply chain.

The deal structure includes a €200 million operation via an NBG covered bond, marking the EIB's first use of this instrument with a Greek lender since 2019. This approach provides the National Bank of Greece with long-term funding while reviving the use of covered bonds within the local market. A supplementary €50 million guarantee rounds out the package, allowing the bank to share lending risks associated with strategic investments. NBG Chief Executive Officer Pavlos Mylonas stated that the partnership directly aligns Greek business growth with the broader European effort to consolidate a competitive defence industrial base.