Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Polands Bank Pekao have collaborated to establish a new InvestEU portfolio guarantee agreement aimed at enhancing the sustainable development of Polish small and medium-sized enterprises (SMEs). The agreement, valued at up to PLN80 million, is designed to facilitate the extension of approximately PLN1.25 billion (over 290 million) in new debt financing to around 4,000 companies, particularly targeting underserved startups and microbusinesses.
The tailored solution addresses the specific challenges faced by these businesses, which often struggle to secure financing due to their risk profiles or lack of sufficient collateral. The EIF's guarantee will cover up to 80% of the new financing provided by Bank Pekao, significantly reducing the risk for the bank and enabling it to offer loans with the lowest guarantee fees in the market. This initiative is expected to mobilize over PLN700 million specifically for companies that have been underserved, with PLN330 million allocated for SMEs and small mid-caps investing in climate-friendly projects, such as photovoltaics, biogas energy production, low-emission transport, and green buildings.
The partnership marks a significant milestone as it represents the EIFs largest guarantee with a commercial bank in Poland in terms of the anticipated size of new SME financing. Since its inception in Poland, the EIF has facilitated financing worth 7.54 billion, supporting a total investment of 22.7 billion and contributing to the creation of 660,000 jobs. This collaboration not only aims to bolster the competitiveness of SMEs and micro-entrepreneurs but also to promote sustainable economic development through increased access to financing for innovative and environmentally friendly projects.