Estonia received €336 million in EIB funding last year

TALLINN - The European Investment Bank (EIB) Group increased its engagement in Estonia in 2025, providing a total of €336 million in new financing and opening the EIB Group's Tallinn office.

The projects supported during the year accelerated the adoption of clean energy, modernized the railway network, and expanded financing opportunities for businesses and households.

The EIB Group's financing in Estonia accounted for 0.8 percent of the gross domestic product (GDP) and helped mobilize approximately €1.3 billion in investments, equivalent to 3.2 percent of GDP or about €981 per capita.

Considering the size of its economy, Estonia is one of the largest recipients of EIB Group financing in the European Union; the EIB Group also includes the European Investment Fund (EIF). The Tallinn office, opened in 2025, will deepen cooperation with local partners.

"The year 2025 showed that we can move forward quickly with our Estonian partners," said EIB Vice-President Karl Nehammer. "Our Tallinn office will allow us to support projects that bring cleaner energy, better connections, and a stronger business sector to the country even more effectively."

Over the last five years, the EIB Group has financed Estonia with an average of €413 million annually. In 2025, the organization's support focused primarily on energy and transport.

For example, the EIB signed a €35 million venture debt agreement with electric vehicle charging network developer Eleport to build over 250 ultra-fast EV charging hubs in eight Central and Eastern European countries, including Estonia. A €31 million EIB loan to renewable energy company Sunly supports the 244-megawatt Risti solar park, set to become the largest solar power generation unit in the Baltic states, supplying electricity to over 80,000 homes. A €45 million EIB loan to Estonian Railways (Eesti Raudtee) will help electrify 600 kilometers of Estonian railway by 2030, which is half of the national network.

In 2025, financing for small and medium-sized enterprises (SMEs) and households was also strengthened. A synthetic securitization with Coop Pank, supported by both the EIB and the EIF, will free up capital for up to €249 million in new loans to SMEs and mid-caps, including financing for gender equality and climate-related portfolios. An InvestEU transaction between the EIF and the Estonian Business and Innovation Agency (EIS) will unlock approximately €109 million in new loans and guarantees for SMEs. An EIF agreement with Swedbank will, in turn, provide up to €82 million for energy-efficient home renovations.

The EIB Group's activities in 2025 benefited over 1,300 Estonian SMEs and mid-caps and preserved nearly 10,000 jobs across the country.

In 2026, the EIB Group plans to support the financing of housing, defense, and security projects in Estonia. Venture capital investments will remain an important tool for promoting the growth of innovative startups.

"In the coming year, we want to strengthen the energy-efficient housing program as well as projects that support security, resilience, and critical infrastructure," said Nehammer. "Estonia has a clear vision for the green and digital transitions, and the EIB Group will remain a reliable partner in its implementation."

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The EIB Group also includes the European Investment Fund (EIF), which supports European competitiveness and security. The EIB's activities are based on eight key objectives, including climate action and environment, digital transition and innovation, security and defense, cohesion, agriculture and bioeconomy, social infrastructure, Capital Markets Union, and a stronger Europe in a more peaceful and prosperous world.