LONDON – In a year defined by geopolitical volatility and economic recalibration, the European Bank for Reconstruction and Development (EBRD) has delivered a historic €16.8 billion in annual investments for 2025. This record-breaking figure—surpassing the previous peak of €16.6 billion in 2024—marks a pivotal moment for the lender as it expands its footprint into new frontiers while doubling down on green and private-sector resilience.
Despite high public debt and inflationary pressures across many of its regions, the Bank successfully financed 640 projects over the 12-month period. EBRD President Odile Renaud-Basso described the results as a testament to the Bank’s “striking achievements” during a period of sustained global challenge.
Breaking New Ground: Africa and Iraq
The 2025 fiscal year was as much about geography as it was about volume. In a landmark expansion, the EBRD signed its first-ever projects in sub-Saharan Africa and Iraq.
- Sub-Saharan Africa: The Bank debuted with a €30 million sovereign loan to Benin’s national power distribution company (Société Béninoise d’Énergie Électrique), focusing on critical rural electrification.
- Iraq: A US$ 100 million trade finance facility was extended to the National Bank of Iraq, the country’s largest private lender, to jumpstart import-export activities and integrate the nation into global markets.
The “Green” and “Private” Engine
Continuing its trajectory toward becoming a “majority green bank,” the EBRD directed 56% of its total investment—€9.4 billion—to the green transition. These funds were channeled into high-impact sectors including renewable energy, low-carbon industrial pathways, and sustainable urban infrastructure via its flagship “Green Cities” programme.
The private sector remained the primary beneficiary of EBRD support, accounting for 75% of all investments (€12.7 billion). This strategy aims to bolster small and medium-sized enterprises (SMEs) that form the backbone of emerging economies, ensuring they remain competitive amid shifting global trade dynamics.
Ukraine: A Multi-Billion Euro Lifeline
Amid the ongoing conflict, the EBRD solidified its role as Ukraine’s largest institutional investor, deploying €2.9 billion to the war-torn nation in 2025 alone.
Key highlights of the Ukraine package included:
- Energy Security: A massive €770 million financing package for Naftogaz to replenish gas reserves—the largest single loan the EBRD has ever provided to the country.
- Critical Infrastructure: €300 million for the state railway operator to maintain vital logistics and transport links.
- Financial Resilience: Risk-sharing facilities for Ukreximbank to unlock €200 million in new lending for local businesses.
Looking Ahead: The 2026-30 Framework
The record performance serves as a springboard for the Bank’s newly approved Strategic and Capital Framework (SCF) for 2026-30. Backed by a €4 billion paid-in capital increase, the framework identifies three core pillars for the next half-decade: the green transition, economic governance, and human capital development.
As the Bank moves into 2026, its focus remains clear: providing “exceptional support” for Ukraine’s post-war reconstruction while leveraging private sector innovation to navigate an increasingly complex global economy in supporting emerging economies.
