Opening Doors: The Role of the EIB Group Office in Malta

Forty-six years after providing its first loan to Malta, the European Investment Bank (EIB) opened a permanent office on the island last year. This move is part of a broader effort to ensure the EIB Group – comprising the EIB and the European Investment Fund (EIF) – has a physical presence in every EU Member State.

With more than €1 billion already invested in Malta, the new office marks a deeper commitment to supporting the country’s growth and sustainability goals.

Lawrence Walsh, the first Head of the EIB Group Office in Malta, explained the role of the new office: “It’s about being closer to our partners: government bodies; businesses; and financial institutions. This proximity helps us tailor support more effectively and improve access to EIB and EIF products and services.”

The office acts as a local hub, simplifying communication and helping stakeholders navigate the EIB Group’s range of financial products and advisory tools. In addition, EIF recently appointed John McIlwaine as senior regional representative for Italy and Malta, based in Rome, with whom the office in Malta works very closely.

The EIB’s relationship with Malta dates back to the expansion of Grand Harbour in 1979, its first project on the island. Since then, it has financed a wide range of initiatives, from infrastructure and urban regeneration to social and environmental projects. Notable landmarks like Valletta’s City Gate and Parliament building were supported by the Bank.

Other flagship projects backed by the EIB include the first interconnector to Sicily, linking Malta to the European power grid or, more recently, the partnership with Malita Investments to build over 750 affordable, energy-efficient housing units, including 250 in Luqa.

Beyond public infrastructure, the EIB Group plays a crucial role in supporting local small and medium-sized businesses (SMEs) and mid-caps. Through intermediated lending, guarantees and risk-sharing tools with local banks and the Malta Development Bank (MDB), the EIB Group helps finance smaller projects that might otherwise fall below the EIB’s direct lending threshold.

“Malta’s banking sector is highly liquid and competitive,” Mr Walsh noted, “so our approach often focuses on guarantees rather than direct loans. Just through the EIF, for example, we have supported over 4,000 Maltese companies, helping sustain around 18,000 jobs in sectors like clean mobility, digitalisation, hospitality and manufacturing.”

The MDB has become a key partner for the EIB Group, especially on climate-focused initiatives.

“As Malta’s national promotional bank, MDB is the EIB Group’s natural ally in the country, and it helps us reach smaller-scale projects with greater local relevance. They’re well positioned to help us deliver impact where it’s needed most,” Mr Walsh said.

The EIB also enjoys a close relationship with the government. A recent €130 million loan to the Ministry for Finance, for instance, is helping fund Malta’s national contribution to EU-financed investment programmes.

Despite strong engagement, Malta’s market size means many projects are too small for direct EIB financing, which generally starts at around €20-25 million. As a result, most direct support has gone to larger players, particularly in the telecommunications sector.

“Our goal isn’t to compete with commercial banks,” Mr Walsh said. “We are complementary and our partnership with local banks is key as we leverage on their local market expertise as well as capillarity. We offer longer maturities, and we often combine our support with EU funds to attract additional investment.”

Advisory Services: A Hidden Strength

“We do not only offer financing at advantageous conditions. The EIB Group also provides a wide range of advisory services, which are free of charge for public entities, covering everything from project preparation to financing strategies,” he explained.

Within the overall EIB advisory services offering, the Joint Assistance to Support Projects in European Regions, better known by the acronym JASPERS, is a partnership funded jointly by the European Commission and the EIB to assist the public sector in bringing projects up to the required standards to obtain EU funding.

JASPERS has been active in Malta since 2007, supporting Maltese authorities in the preparation of investment projects in several sectors and in strengthening internal technical capacity in important areas, such as resilience to climate change. As a recent example, EIB advisory through JASPERS has supported the preparation of the second interconnector from Sicily to Malta – the largest EU-funded project in Malta’s 2021-2027 cohesion programme – as well as the development of battery energy storage systems in the island.

Furthermore, in the Public-Private Partnerships (PPP) space, the EIB European PPP Expertise Centre supports Member States on PPPs by sharing good practice and knowledge, assisting policy development including regulatory frameworks and supporting PPP project preparation.

As the EU’s climate bank, the EIB devoted 60% of its €89 billion financing in 2024 to green projects, including €31 billion for energy security. This emphasis resonates in Malta, where 96% of businesses have taken steps to reduce emissions, well above the EU average. Still, there’s progress to be made.

“Malta generated just 11% of its electricity from renewables in 2023 – the lowest percentage in the EU,” Mr Walsh pointed out. “With so much sun and wind, there’s a real opportunity to change that.”

Improving energy efficiency in buildings is also key, especially as Malta works toward its 2050 net-zero target also outlined in its Climate Action Plan and Vision 2050 strategy.

Growing Malta’s Investment Ecosystem

Beyond public financing, Mr Walsh is optimistic about Malta’s long-term push to expand its private equity and venture capital ecosystem. He highlighted the efforts of organisations like Malta Enterprise, Malta Venture Capital, PEVCA, and FinanceMalta in building this space.

“We’re watching this area closely,” he said. “It has the potential to strengthen Malta’s economy and position the island as a launchpad for investments into North Africa and southern Europe and/or develop specialist clusters in certain key industries.”

EIB Global, the arm of the bank responsible for investments outside the EU, already works with a Maltese-based private equity firm on global projects.

“Our collaboration with Mediterrania Capital Partners, for example, has delivered strong results in the Southern Neighbourhood (North Africa) and West Africa,” he noted.

The EIB Group is also keen to support start-ups in emerging fields like clean tech, the blue economy and water management. But Mr Walsh warned that long-term growth would require a shift in how Europe – and Malta – approaches investment.

“Too often, businesses rely solely on real estate or government bonds,” he explained. “Without deeper investment vehicles, companies look elsewhere – often to the US – for funding.”

He sees the EU’s planned Savings and Investment Union as a vital step toward changing this dynamic.

Looking to the future, Mr Walsh envisions Malta playing a broader role as an investment hub for the Mediterranean region. As its fund industry matures, the island could become a base for managing capital aimed at both southern Europe and North Africa.

“There’s a lot of potential here,” he concluded. “And the EIB Group is committed to supporting it – now and in the years to come.”

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