Investment & Fund Management

L-Bank, the Landeskreditbank Baden-Württemberg, faced the challenge of enhancing financing options for small and medium-sized enterprises (SMEs) in the region, particularly in the context of sustainability and innovation. To address this, L-Bank signed a counter-guarantee with the European Investment Fund (EIF) amounting to €30 million, facilitated by the InvestEU programme. This counter-guarantee allows regional banks to support SME financing of up to €61 million, significantly increasing the financial resources available to local businesses.

The tailored solution provided by the EIF includes two specific guarantee products: the Sustainability & Green Transformation product and the Innovation & Digitalisation product. The Sustainability Guarantee aims to promote environmentally friendly investments among SMEs, while the Innovation and Digitalisation Guarantee supports companies engaged in research, development, and the adoption of new technologies. This strategic partnership not only enhances the risk-sharing capacity of L-Bank and its regional banking partners but also translates into preferential financing conditions for SMEs, enabling them to invest in critical areas of sustainability and innovation.

As a result of this initiative, SMEs in Baden-Württemberg can secure loans of up to €7.5 million with up to 70% coverage through the L-Bank InvestEU program. The EIF's backing is expected to facilitate investments totaling around €61 million, thereby advancing the digital and sustainable transformation of the local economy. This collaboration exemplifies how targeted financial instruments can effectively support regional economic development and the transition towards a greener and more innovative business landscape.