Investment & Fund Management

The European Investment Fund (EIF) and Pohjola Bank signed a guarantee agreement aimed at enhancing lending to innovative small and medium-sized enterprises (SMEs) and small mid-caps in Finland, Estonia, Latvia, and Lithuania. This initiative, supported by the European Fund for Strategic Investments (EFSI), is designed to address the financing challenges faced by innovative companies in these regions.

The tailored solution involves a commitment of EUR 150 million in loans over two years, facilitated by an EIF guarantee under the “EU InnovFin finance for Innovators” initiative, which is backed by the European Commission's Horizon 2020 programme. This agreement enables Pohjola Bank and its network of 180 cooperative banks to offer additional financing to innovative companies at favorable conditions, thereby improving access to finance for SMEs in the Baltic states.

As a result of this collaboration, the EIF and Pohjola Bank aim to stimulate growth and job creation in these countries, which are recognized for their vibrant start-up ecosystems and innovation capabilities. The agreement marks a significant step in providing new risk financing to small businesses, ultimately contributing to the economic development of the region.