EIB Grants €450m Loan to Thales for R&D in Aeronautics and Radar Systems

The European Investment Bank (EIB) has approved a €450 million loan to Thales, marking one of its largest-ever corporate financing operations in the security and defence sector. The funding will support Thales’ research and development programme in aeronautics and radar technologies, which will run until the end of 2027.

This programme aims to enhance flight safety and efficiency across both civil and military aviation while modernising existing radar equipment and developing a new generation of civil and military software and radar systems.

A Landmark Deal for Defence Innovation

The loan represents the first EIB financing granted to Thales and underscores the growing importance of defence-related innovation within the EU’s strategic agenda. It is also part of TechEU, the EIB’s flagship innovation programme launched in June 2024 with €70 billion in available funding through 2027.

EIB Vice-President Ambroise Fayolle said the partnership highlights the central role of technological leadership in Europe’s security and sovereignty.

“In the security and defence sector, innovation is key. The EIB is pleased to help Thales, a global leader in defence, aerospace, and cybersecurity, remain at the forefront of technological development. This initial operation with Thales also shows the EIB Group’s strong commitment to financing the security and defence sector, which is central to European sovereignty,” Fayolle said.

Strengthening European Sovereignty

Thales Senior Executive Vice President for Finance and Information Systems, Pascal Bouchiat, welcomed the EIB’s backing, emphasising its role in reinforcing both the company’s and Europe’s technological strength.

“We are very pleased with this support from the European Investment Bank, which reinforces the Group’s technological leadership and its contribution to European sovereignty,” Bouchiat said.

He noted that Thales already invests heavily in innovation, with 3,000 researchers and 30,000 engineers engaged in R&D and annual spending of €4.2 billion. The company is consistently ranked among the world’s most innovative firms in defence and aerospace technology.

EIB’s Expanding Role in Defence Financing

The loan is part of a broader shift in the EIB Group’s support for European security and defence, which has intensified since 2024. Security and defence financing is now classified as a permanent public policy objective and forms one of the EIB’s eight strategic priorities for 2024–2027.

To meet Europe’s evolving security needs, the EIB has:

• Revised its lending policy to expand eligibility for defence-related projects.

• Established a Security and Defence Office to handle project applications more efficiently.

• Set a target to allocate 3.5% of its total 2025 financing (about €3.5 billion) to security and defence.

Currently, the Bank has 80 projects under review, developed in close dialogue with defence ministries, industry players, financial intermediaries, and institutions such as the European Commission, European Defence Agency, and NATO. These projects are intended to bolster the European Union’s technological base, resilience, and sovereignty in an increasingly uncertain geopolitical environment.

Looking Ahead

The EIB’s loan to Thales signals not only a strong commitment to innovation in aerospace and radar technologies but also a strategic pivot toward supporting Europe’s defence capabilities. By enabling Thales to push ahead with cutting-edge R&D, the financing is expected to generate technological advances that will benefit civil aviation, military readiness, and Europe’s overall security infrastructure.

As the EU deepens cooperation in defence and technology, the partnership between the EIB and Thales sets a precedent for future public-private initiatives designed to maintain Europe’s global competitiveness in critical sectors.