The European Investment Bank signed an agreement to provide €450 million ($492.69 million) in financing as the first tranche of up to €500 million ($547.43 million) in financing to Iveco Group, an automotive company active in the commercial, specialty vehicle, powertrain and related financial services arenas. The financing from the European Investment Bank is aimed at supporting Iveco Group’s efforts in developing technologies for the electrification, efficiency and safety of the transportation sector.

In detail, the loan of €450 million ($492.69 million) represents the first tranche of the €500 million ($547.43 million) total approved by the board of directors of the European Investment Bank. The loan, which has an eight-year amortization profile, will be drawn in full shortly. The resources made available by EIB will enable Iveco Group to develop technologies and architectures in the field of electric propulsion. The Iveco Group will also develop solutions for autonomous driving, digitalization and vehicle connectivity. The investment will not only contribute to improving electric and fuel cell vehicles but also to reducing production costs and operating costs of products and services, facilitating wider penetration in the market.

The investments will be made by the end of 2025, mainly in Italy, specifically in the Iveco Group Turin and Foggia plants, but also in Germany, France, Spain, Czech Republic and Switzerland.

“Investing in projects that facilitate the development of sustainable mobility is essential to accelerate the decarbonization of the transport sector, which is responsible for more than a quarter of the CO2 emissions in Europe,” Gilles Badot, director for operations in Italy for the European Investment Bank, said. “This operation with Iveco Group not only demonstrates the strong commitment of the EIB to the climate transition but also contributes to promoting innovation and job creation in Italy and Europe.”

“This significant financing from the EIB demonstrates trust in Iveco Group’s ability to advance sustainable mobility and our ongoing efforts to reduce the carbon footprint of the transport sector,” Marco Liccardo, chief technology and digital officer for the Iveco Group, said. “It will enable us to accelerate the development and deployment of innovative technologies and solutions that are key to our strategic vision and the future of transport.”