Investment & Fund Management
Danske Bank and the European Investment
Full Credential Description
Danske Bank and the European Investment Fund (EIF) have established a partnership aimed at enhancing financing options for small and medium-sized enterprises (SMEs) and small mid-cap companies across the Nordic countries. This collaboration has resulted in a guarantee agreement that unlocks up to 178 million in new lending, specifically targeting projects focused on sustainability and innovation & digitalisation. The EIF guarantee, part of the European Commissions InvestEU initiative, is designed to improve access to financing for investments that support the green transition and digital technologies.
The allocation of the funds is strategically divided, with three-fifths dedicated to sustainability objectives, such as renewable energy and energy efficiency projects, while the remaining two-fifths is aimed at fostering innovation and digitalisation. This targeted approach not only addresses the specific financing needs of Nordic SMEs but also aligns with broader EU goals for sustainable development and technological advancement.
The implementation of this agreement is set to roll out in Denmark, Norway, and Sweden, with the first loans anticipated to be issued in Sweden shortly. The guarantees provided by the EIF are expected to make financing more affordable and accessible for smaller businesses by mitigating lending risks for Danske Bank, which in turn influences the pricing and size of loans available to these enterprises. This initiative is crucial for bolstering investments in Europe, enhancing growth and competitiveness, and supporting the long-term sustainable development goals of Danske Bank.
Previously, Danske Bank collaborated with the EIF to provide 50 million in guarantees for SMEs in Finland, which facilitated financing for innovative companies like Resand. Resand specializes in foundry sand regeneration, offering a solution that cleans used sand on-site for reuse, significantly reducing the need for virgin sand and minimizing environmental impact. This case exemplifies the tangible benefits of the EIF's guarantees in promoting sustainable business practices and supporting innovation within the Nordic region.