EIF joins forces with six EU countries to spur at least €2 billion for infrastructure between Baltic, Adriatic and Black seas
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EIF and Poland’s BGK, Romania’s BID, Lithuania’s ILTE, Bulgaria’s JEREMIE, Croatia’s HBOR and Slovenia’s SID Kapital kick off infrastructure investment fund with commitments totaling €360 million.
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New “Three Seas Initiative Infrastructure Fund of Funds” aims to mobilise at least €2 billion for energy, mobility, digital and social infrastructure between Baltic, Adriatic and Blacks seas.
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Operation marks EIF’s first multi-country investment programme focused on infrastructure and one of its largest co-investment commitments.
The European Investment Fund (EIF) is teaming up with Poland, Romania, Lithuania, Bulgaria, Croatia and Slovenia in a €360 million drive to spur the development of strategic infrastructure between the Baltic, Adriatic and Black seas.
The EIF, which is part of the European Investment Bank (EIB) Group, and institutions from the six countries today launched the “Three Seas Initiative Infrastructure Fund of Funds”. The aim is to channel capital into development projects in sectors including energy, mobility and digital and social infrastructure. The signing took place in Ljubljana at an event hosted by Slovenian national promotional bank SID Banka, on the margins of the ELTI (European Long-Term Investors Association) General Assembly.
The six national entities are committing a combined €180 million and the EIF will match the sum – one of its largest co-investment commitments to date under a regional mandate in the European Union and its first multi-country investment programme focused on infrastructure. The overall ambition of the initiative is to mobilise – through investments in several infrastructure funds – at least €2 billion.
“That is what this initiative does: every euro our partners commit is matched by the EIF and the funds we back become the region's own capacity to keep building. Six countries are here today. The door is open for more.’’
The Three Seas Initiative Infrastructure Fund of Funds will spread its capital across several funds including ones led by first-time and emerging management teams based in the participating countries and pan-European funds committing capital to the region.
The aim is to support a broader range of investment strategies and teams, encourage regional infrastructure managers to form and scale and attract additional private and institutional capital.
“This new regional investment channel will connect strategic infrastructure across several countries. By bringing together national and EIF resources, we can support, and create concrete projects on the ground, providing real impact to both the region and Europe.”
The Three Seas Initiative Infrastructure Fund of Funds has a target of €250 million in country contributions, which the EIF would then at least match through its co-investments.
The Three Seas Initiative Infrastructure Fund of Funds will back around six infrastructure funds, mixing generalist and specialist strategies, taking anchoring stakes alongside other investors. The aim is both to finance current projects and to help a lasting infrastructure fund market take root in the region, with more private and institutional capital drawn in alongside public money.
President of the Management Board of SID Banka, Borut Jamnik: As part of the SID Banka Group, SID Kapital is proud to join this regional initiative as an anchor investor. We believe the Fund of Funds model is an effective way to strengthen the infrastructure investment ecosystem across the Three Seas region by supporting experienced and emerging fund managers and attracting additional private capital. Together with our partners and the EIF, we are creating a platform that can unlock long-term investment in projects that enhance connectivity, resilience and sustainable growth across the region.”
The participating Polish organisation is Bank Gospodarstwa Krajowego (BGK).
“The establishment of the Three Seas Initiative Infrastructure Fund of Funds marks the next stage in developing effective mechanisms for financing infrastructure in our region, leveraging the potential of European institutions, including the European Investment Fund. As a result, the countries of Central and Eastern Europe, including Poland, gain an additional instrument to support the delivery of strategic investments. BGK’s commitment to this project reflects our strong conviction that it has significant potential to help reduce the region’s investment gap, which is estimated at up to €1 trillion,” said President of Bank Gospodarstwa Krajowego (BGK) Mirosław Czekaj. ‘’It also confirms the very strong cooperation between BGK and European development institutions in strengthening the competitiveness and resilience of the economies of our region.’’
The participating Romanian entity is the country’s Investment and Development Bank, or BID.
“For BID, signing the mandate agreement turns the participation announced in April into a firm investment commitment. The fund-of-funds structure gives us access to a diversified mix of investment strategies and fund managers, while the EIF’s co-investment increases the amount of capital available from day one. More broadly, we are helping develop a regional infrastructure investment ecosystem that can mobilise long-term capital and support bankable projects in Romania and across the region.”, said Chief Executive Officer of the Investment and Development Bank of Romania, Raluca Nicolescu.
The participating Lithuanian institution is national development bank ILTE.
“Raising international institutional capital is becoming increasingly important to ensure the financing of long-term infrastructure projects. Participation in this 3JI FoF not only contributes to the development of the region but also opens up additional sources of financing for projects in Lithuania,” says Member of the ILTE Board and Head of the Business Development Department, Tadas Gudaitis. “At the same time, it creates an opportunity for fund managers in Lithuania and the region to present their investment strategies to the EIF and attract funding to the funds they manage and to companies in Lithuania and the region.”
The participating Bulgarian entity is JEREMIE Bulgaria EAD, a holding fund fully owned and managed by the European Investment Fund (EIF), on behalf of the Government of Bulgaria, as overseen by the Ministry of Innovation and Digital Transformation.
“Bulgaria’s participation in the Three Seas Initiative Infrastructure Fund of Funds, with a commitment of €25 million through JEREMIE Bulgaria, is an investment in projects that can make a real difference to our connectivity with the region and Europe. With the support and expertise of the European Investment Fund, the Fund can help bring public and private capital together and support strategic investments in energy, transport, digital and social infrastructure. This is where regional cooperation can deliver tangible value for businesses, communities and the economies of the Three Seas region.”, said Deputy Minister, Ministry of Innovation and Digital Transformation, Mira Yossifova.
In Croatia, the participating entity is the Croatian Bank for Reconstruction and Development, or HBOR.
‘’EIF remains a key partner in HBOR's equity investment efforts. With this latest financial instrument, we expect to mobilise substantial infrastructure capital for Croatia and the broader region,” said Member of HBOR Management Board Alan Herjavec. ‘’We also view EIF’s strong engagement in Croatia and other regions of the European Union, in need of such investments, as crucial for mobilising private capital, and reducing development gaps across the EU market.’’
The new operation builds on a “Three Seas Initiative Investment Fund” launched in 2019 and will employ the fund-of-funds model already applied under a 2024 “Three Seas Initiative Innovation Fund” focused on growth and expansion capital.