The European Investment Bank has approved a record 3 billion loan for Airbus (EADSY) as the EU moves to strengthen its technological sovereignty against tougher competition from the US and China.
The first 1 billion tranche, signed Monday in Brussels, will support Airbus's research, development and innovation program across France, Germany and Spain. The funding could help push forward the company's commercial and defense aviation capabilities at a time when Brussels is increasingly backing strategic sectors such as defense, critical raw materials and clean technology.
For investors, the deal could be a major balance-sheet advantage for Airbus. CFO Thomas Toepfer said the loan's competitive terms and flexibility give the company maximum optionality to manage its balance sheet, reduce cost of carry and sustain long-term aerospace innovation, while EIB President Nadia Calvino said the approval shows Europe can move with speed and at scale to support its champions.