The European Investment Bank (EIB) and 11 members of the Association of European Development Finance Institutions (EDFI) announced on Monday a new dedicated COVID-19 financing initiative through the European Financing Partners (EFP) scheme worth €280 million, targeting supporting financial institutions and businesses in developing countries and ensure continued business investment.

EIB Vice-President Ambroise Fayolle stated that increasing targeted support for private sector investment around the world is crucial to strengthen the resilience of companies and communities most impacted by COVID-19.

“EIB is pleased to join forces with development finance partners from across Europe to build on the successful track record of EFP. The €280 million of new COVID-19 through EFP support represents a further milestone in Team Europe’s rapid response to support partners around the globe,” said Fayolle.

The dedicated support enables EDFI members and the EIB to scale up robust and targeted support for businesses in developing and emerging markets, and assist local financial partners most impacted by COVID-19. The initiative will start operations in November with an initial amount of €280 million, EIB said in a statement.

The initiative has been designed to provide additional support to address challenges faced by companies suffering from the economic consequences of the pandemic, according to the statement.

Launched in 2003, EFP has demonstrated how financial support can be provided using an efficient and fast track process with low administrative overheads.

EFP enables large-scale investment in developing countries to be supported while reducing the risk faced by individual development finance institutions.

Since its launch, the partnership between development finance partners and the EIB has supported sustainable private sector investment in 43 projects, with a total value of €590 million across countries included in the Organisation for Economic Co-operation and Development's Development Assistance Committee's list, according to EIB.

40 percent of the EFP's financing so far has been allocated to financial intermediaries, and infrastructure and agri-business represent other key sectors.

“Co-financing between development finance institutions is an important component of Team Europe’s response. Building up on the long-lasting strategic partnership we have with the EIB and the success of our existing EFP facility; it has emerged as the preferred platform to offer emergency support financing to crucial sectors such as energy, infrastructure, financial intermediaries, manufacturing, agri-business, and services,” said EDFI Chairman Bruno Wenn.