EIB Lends €60 Million to Andorra to Accelerate Its Energy Transition

The European Investment Bank (EIB) has approved a €60 million framework loan to finance the energy transition of the Principality of Andorra. A first tranche of €30 million has already been signed between the two parties. This marks the first lending operation concluded between the EIB and Andorra. As governments step up their national energy policies — the IEA has deployed a dedicated tracking tool amid growing geopolitical tensions — the Principality is embarking on a structured programme to reduce its energy import dependency.

EIB's First Loan to Andorra

The operation is primarily designed to support projects developed by Forces Elèctriques d'Andorra (FEDA), Andorra's public energy utility. The loan is extended on financial terms comparable to those offered to European countries with the same credit rating as Andorra. The transaction widens and diversifies the pool of international financing available to the Principality. According to the EIB, the financing would also help reduce Europe's dependence on fossil fuel imports.

Investments cover three pillars: renewable energy generation, electricity transmission and distribution networks, and district heating and cooling systems. These projects aim to accelerate Andorra's energy transition and strengthen its energy self-sufficiency. FEDA, the central player in this programme, is set to receive the bulk of the funding.

EIB Group Strategic Framework

The operation supports the EIB Group's climate priorities as outlined in its Strategic Roadmap for 2024-2027 and the second phase of the Climate Bank Roadmap for 2026-2030. The EIB, the financial arm of the European Union and owned by its 27 member states, ranks among the world's largest multilateral development banks. In 2025, the EIB Group signed €100 billion in new financing for more than 870 high-impact projects worldwide.