BPCE sign €300m deal with EIB to support French defence SMEs

In a milestone agreement for France’s defence industry, the Banque Populaire and Caisse d’Epargne networks — part of the BPCE Group — have become the first French banks to sign a financing deal with the European Investment Bank (EIB) aimed at supporting small and medium-sized enterprises (SMEs) in the security and defence sector.

Under the agreement, the EIB will provide a €300 million loan to BPCE, enabling the banking group to significantly increase financing for French SMEs developing technologies in key strategic areas such as cybersecurity, surveillance, resilience, and defence innovation.

This is the first operation of its kind in France, and only the second in Europe, under the EIB’s new €3 billion envelope specifically dedicated to European SMEs in the security and defence value chain. The goal: to facilitate access to capital for companies playing a critical role in bolstering Europe’s sovereignty and technological resilience.

“We are very pleased that BPCE, through its network Banque Populaire and Caisse d’Epargne, is the first banking group in France to sign this strategic agreement with the EIB,” said Cédric Glorieux, Head of Products and Solutions at Banque Populaire and Caisse d’Epargne.

“This agreement underlines our determination to step up our support for French small and medium-sized enterprises in the defence sector. Thanks to this €300 million financing envelope, BPCE will play a key role in strengthening the competitiveness and innovation of French companies, while meeting the challenges of our country’s sovereignty.”

The financing will specifically target companies developing advanced technologies that enhance Europe’s security architecture — including in the rapidly evolving fields of digital security and operational resilience.

“To ensure the security of our continent, we must support the entire ecosystem of the defence industry, including companies present in the value chain, as they often have a significant impact on their territory in terms of innovation and employment.”

This announcement follows a major step forward in the EIB’s broader defence strategy: a recent agreement signed on June 6 with the national promotional banks of France, Germany, Italy, Poland, and Spain. The collaboration aims to co-finance initiatives that strengthen Europe’s collective defence capabilities through research, infrastructure, and industrial development.

Robert de Groot, EIB Vice-President responsible for security and defence, emphasized the growing momentum: “In the space of one week, two major operations have been signed between the EIB and European banking partners to support SMEs active in security and defence. Facilitating financing is a critical step toward unlocking the full potential of these companies in strengthening Europe’s strategic capabilities.”