Investment & Fund Management

Triodos Bank faced the challenge of providing adequate financing to small and medium-sized enterprises (SMEs) in sectors that are often underserved by traditional banking, particularly in sustainability, social entrepreneurship, and the cultural and creative sectors. To address this issue, the European Investment Fund (EIF) signed three new guarantee agreements with Triodos Bank, enabling over €200 million in new lending specifically aimed at supporting approximately 600 SMEs across the Netherlands, Belgium, Spain, and Germany.

The tailored solution involved offering loans at reduced interest rates and with lower collateral requirements, which significantly eased the financial burden on qualifying SMEs. This initiative is part of the European Commission’s InvestEU programme, which focuses on fostering social entrepreneurship and sustainability. Notably, the guarantees have been crucial in financing projects within the independent film industry in Spain, Belgium, and Germany, promoting films that address labor rights and democratic values. In the Netherlands, a specific loan backed by an EIF guarantee facilitated the completion of the Amare cultural hub in The Hague, enhancing the local cultural landscape.

As a result of this collaboration, the partnership between Triodos Bank and the EIF has made available over €600 million for European SMEs since 2018. The latest agreements include a top-up to an existing capped guarantee, allowing an additional €89 million for social entrepreneurship, and a new uncapped guarantee aimed at generating €71 million for green investments and €43 million for the cultural and creative sectors. This strategic approach not only supports the financial needs of SMEs but also aligns with broader European values of sustainability and social responsibility, demonstrating the positive impact of public-private partnerships in driving economic growth and innovation.