The European Bank for Reconstruction and Development (EBRD) has confirmed that its largest shareholders, including the United States, have committed to or already paid for a substantial €4 billion ($4.7 billion) capital increase, marking a major milestone in the bank’s expansion and investment plans.

An EBRD spokesperson told Reuters:

“Our largest shareholders have now either subscribed or have indicated their intention to subscribe, and in total we expect more than 90% of the general capital increase to be taken up.”

This development comes after years of deliberation and a period of uncertainty over U.S. participation.

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U.S. Support Secured After Policy Review

The capital increase was initially approved by the EBRD board in late 2023, with a subscription deadline originally set for mid-2025 and later extended to the end of the year. At the time of the extension, over half of the bank’s shareholders had committed to or already completed their payments, but the United States—the EBRD’s largest single shareholder—had yet to confirm its contribution.

Earlier in 2025, former President Donald Trump ordered a review of U.S. participation in international organizations, creating temporary uncertainty over Washington’s financial support. However, last month Trump signed an appropriations bill authorizing the U.S. Treasury to subscribe for up to 40,000 additional EBRD shares, providing $437.5 million for the capital increase. This move effectively cleared the path for full shareholder participation.

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Implications for EBRD Investments

The approved capital increase will raise the EBRD’s capital base to €34 billion, significantly expanding its capacity to finance development and reconstruction projects. One immediate impact is the ability to double investment in Ukraine as reconstruction efforts accelerate.

In addition to European operations, the EBRD has been actively broadening its geographic reach. The bank recently expanded its membership and made its first-ever investments in Sub-Saharan Africa, providing a €30 million loan to strengthen Benin’s national electricity grid. It also announced a $100 million trade finance facility in Iraq, signaling its commitment to supporting emerging markets and post-conflict economies.

Since its founding in 1991, the EBRD has invested over €190 billion across 77 national shareholders, alongside the European Union and the European Investment Bank, solidifying its role as a key driver of international development finance.

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Future Outlook

With more than 90% of the capital increase now secured, the EBRD is well-positioned to expand its operations, strengthen financial support for countries undergoing reconstruction, and pursue new development projects globally. Analysts view this as a positive signal of international confidence in multilateral development banks, particularly in the context of geopolitical uncertainty.

The bank’s strategic expansion into Africa and the Middle East also reflects a growing trend among international financial institutions to diversify investments and address critical infrastructure needs in developing regions.