Investment & Fund Management

The European Investment Fund (EIF) and The Danish Growth Fund (Vaekstfonden) entered into a COSME counter-guarantee agreement, marking a significant step in supporting Small and Medium-sized Enterprises (SMEs) in Denmark. The specific challenge faced by Danish SMEs was the need for risk capital to foster growth and enhance competitiveness, particularly for innovative businesses.

To address this issue, the EIF provided a counter-guarantee that enabled Vaekstfonden to support DKK 360 million (approximately EUR 48 million) in loans to SMEs over a two-year period. This tailored solution was designed to facilitate additional financing at favorable conditions, ultimately benefiting around 250 SMEs in Denmark.

The results of this initiative were notable, as it represented the first COSME agreement in Denmark and was part of the broader European Fund for Strategic Investments (EFSI) framework. The agreement was seen as a direct response to the demand for swift action to boost investment and job creation in the EU. The Danish Minister of Business and Growth highlighted that this agreement secured further risk capital for companies with growth potential, showcasing the tangible impact of the EIF's support on the Danish economy.