EIB and BRED Banque Populaire Launch €400 Million Partnership for Overseas Growth

In a landmark agreement to boost investment and resilience in France’s overseas territories, the European Investment Bank (EIB) has signed its first-ever partnership with BRED Banque Populaire, committing €400 million in financing to support small and medium-sized enterprises (SMEs), mid-cap companies, and sustainable infrastructure projects.

The operation marks a significant milestone in the EIB’s engagement with the French banking sector to promote inclusive economic growth, green transition, and climate adaptation across territories such as Mayotte, Guadeloupe, Martinique, Réunion, French Guiana, and New Caledonia.

An initial tranche of €100 million has already been released, which will enable the mobilization of an estimated €800 million in total investment for businesses and projects across the overseas regions.

A Strategic Partnership for Economic Resilience

The newly signed agreement between the EIB and BRED Banque Populaire, a member of the BPCE Group, aims to ease access to credit for local enterprises that often face financial constraints due to geographic remoteness, limited infrastructure, and higher operating costs.

The financing will help address structural challenges that affect overseas economies while supporting job creation, innovation, and sustainable investment.

According to the agreement, the key objectives of the partnership are to:

• Facilitate access to credit for SMEs and mid-cap companies through targeted financing lines.

• Support post-crisis recovery and reconstruction efforts in Mayotte, which has faced both economic and social strains.

• Accelerate the energy transition by investing in projects that promote renewable energy, energy efficiency, and climate resilience.

• Stimulate local employment and enhance the investment capacity of small and medium-sized businesses.

At least 20% of the total envelope will be dedicated to projects with positive environmental impacts, underscoring the commitment of both institutions to climate action.

Focusing on the Green and Digital Transition

The financing will prioritize investments that align with the European Green Deal and France’s national energy transition goals. Eligible projects include:

• Renewable energy installations, such as solar and wind farms in island regions.

• Energy efficiency upgrades for public buildings, schools, and housing.

• Climate adaptation measures, such as coastal protection, sustainable agriculture, and water management systems.

• Digitalization and innovation programs that strengthen the competitiveness of local businesses.

By targeting these areas, the EIB and BRED aim to build long-term resilience for territories that are among the most exposed to the impacts of climate change, including rising sea levels, extreme weather events, and resource scarcity.

Leadership Voices: Partnership for Sustainable Growth

Announcing the agreement, Ambroise Fayolle, Vice-President of the European Investment Bank, highlighted the strategic importance of this partnership for fostering inclusive and sustainable development:

“The EIB and BRED Banque Populaire are long-standing partners, and today we are joining forces to support overseas SMEs. We are also proud that, for the first time, this partnership places a particular emphasis on financing climate projects, focusing on energy efficiency for buildings, renewable energy sources, and climate change adaptation.”

Jean-Paul Julia, Chief Executive Officer of BRED Banque Populaire, emphasized that this collaboration aligns perfectly with the bank’s mission to support local economies and the ecological transition:

“We are particularly proud to sign this first agreement with the EIB to support the development of the overseas territories. This partnership illustrates our desire to actively contribute to the success of transition and growth projects of overseas companies that are shaping the future of these territories.”

Rebuilding and Revitalizing Mayotte

One of the immediate priorities under the agreement is supporting economic recovery in Mayotte, the French department in the Indian Ocean that has faced both infrastructure challenges and social unrest. The new financing will help fund reconstruction projects, energy upgrades, and entrepreneurship initiatives designed to create jobs and stabilize the local economy.

The EIB and BRED’s collaboration is expected to strengthen local financial ecosystems by enabling regional banks and cooperatives to offer better financing terms to small businesses. By improving credit access, the partnership aims to unlock entrepreneurship potential in sectors such as agroindustry, tourism, renewable energy, and digital services.

A Commitment to Territorial Equity and Innovation

The EIB’s investment in overseas territories reflects its broader mission to promote cohesion and balanced development within the European Union. These regions, though geographically distant, are recognized as key partners in Europe’s green and blue economy.

The initiative also supports the EU’s objectives for sustainable economic integration across its outermost regions, helping bridge gaps in infrastructure, technology, and employment opportunities.

Beyond direct financing, BRED Banque Populaire will offer technical assistance and advisory services to help SMEs structure viable projects, manage resources efficiently, and scale operations.

Looking Ahead: Building a Sustainable Future

This partnership builds upon the EIB’s broader ambition to be Europe’s climate bank, with more than 50% of its annual financing dedicated to climate action and environmental sustainability by 2025. It also aligns with BRED’s strategy to be a catalyst for local innovation and to promote financial inclusion in underserved markets.

Over the coming years, the €400 million credit line is expected to benefit hundreds of small enterprises, create thousands of local jobs, and contribute to the decarbonization of overseas economies.

By combining European financing with local expertise, the EIB–BRED partnership is not only investing in businesses—it is investing in resilience, innovation, and the sustainable prosperity of communities across France’s overseas territories.