First financing in Greece for security and defense, with 100 million through Piraeus

The European Investment Bank (EIB) has signed a new 100-million-euro financing agreement with Piraeus, marking a landmark transaction as it is the first EIB transaction in Greece exclusively targeted at supporting companies in the security and defence sector.

Through Piraeus, the funds will be made available mainly to small and medium-sized enterprises (SMEs) and mid-caps in Greece, operating or implementing investments in the security and defence sector, in accordance with the EIB’s eligibility criteria. Including the envisaged leverage, the financing is expected to mobilise a total of up to 200 million euros for the benefit of the programme’s targeted final beneficiaries.

The initiative aims to address the structural constraints on access to finance faced by SMEs and mid-caps in the security and defence sector. These constraints are often linked to the specific characteristics of the sector, the dual-use of certain activities and the lack of specialised financial instruments.

The EIB’s participation is expected to substantially improve financing conditions for final beneficiaries, through lower borrowing costs, longer repayment periods and the leverage of additional private capital. At the same time, with its participation, the EIB expects to send a strong signal of confidence to the market, contributing to reducing perceived risk and attracting further investment.