Brandenburg to acquire full ownership of ILB and boost capital

The state of Brandenburg plans to become the sole owner of the Investitionsbank des Landes Brandenburg (ILB) by purchasing the 50 percent stake currently held by NRW.BANK. The acquisition is expected to cost approximately 170 million euros.

In addition to the buyout, the state intends to significantly increase the bank's equity. The current equity of 780 million euros is slated to be raised by 500 million euros in 2027 and another 500 million euros in 2028. This strategy aims to transform the ILB from a traditional subsidy provider into a more robust investment bank capable of leveraging market capital to fund large-scale projects.

Finance Minister Daniel Keller stated that these measures are necessary to address challenges in infrastructure, education, innovation, health, the energy transition, and housing, especially as state budgets face tightening constraints. While the plan involves taking on loans that will create interest burdens, Keller noted that the move is intended to generate higher capital returns and is not considered a traditional debt burden because of the underlying assets. The transaction requires approval from the Brandenburg state parliament.