Investment & Fund Management

Danske Bank and the European Investment Fund (EIF) have established a partnership aimed at enhancing financing options for small and medium-sized enterprises (SMEs) and small mid-cap companies across the Nordic countries. This collaboration has resulted in a guarantee agreement that unlocks up to €178 million in new lending, specifically targeting projects focused on sustainability and innovation & digitalisation. The EIF guarantee is part of the European Commission’s InvestEU initiative, which aims to improve access to finance for SMEs.

The tailored solution provided through this partnership allocates three-fifths of the guarantee to support sustainability objectives, funding businesses that promote renewable energy and energy efficiency. The remaining two-fifths is dedicated to fostering innovation and digitalisation, thereby facilitating access to finance for research- and innovation-driven companies. This strategic allocation is designed to address the specific needs of Nordic SMEs, which often face challenges in securing financing for green and digital projects.

As a result of this initiative, Danske Bank anticipates that the guarantees will not only make financing more affordable and accessible for smaller business customers by mitigating lending risks but also stimulate investments across Europe. The first loans under this agreement are expected to be issued in Sweden shortly, marking a significant step in supporting local businesses with advantageous financing options. This collaboration builds on a previous EIF deal with Danske Bank that provided €50 million in guarantees for green investments in Finland, demonstrating a commitment to fostering sustainable growth in the region.