MFB Commits €20 Million to EIF-Led Three Seas Initiative Innovation Fund to Support Central and Eastern European Businesses

MFB Commits €20 Million to EIF-Led Three Seas Initiative Innovation Fund to Support Central and Eastern European Businesses

(IN BRIEF) The MFB Hungarian Development Bank has pledged €20 million to the 3SI Innovation Fund, which is led by the European Investment Fund (EIF). The fund, targeting growth-stage businesses in Central and Eastern Europe, aims to raise €180 million to support investments in private equity, venture capital, and private credit funds. With EIF’s matching of contributions, the fund hopes to mobilize up to €1 billion in new financing to boost innovation, climate action, and job creation across the region.

(PRESS RELEASE) LUXEMBOURG/BUDAPEST, 20-Nov-2024 — /EuropaWire/ — Hungary’s national promotional institution, MFB Hungarian Development Bank (MFB), has pledged €20 million to the Three Seas Initiative (3SI) Innovation Fund, a fund designed to support growth-stage businesses in Central and Eastern Europe. This investment marks MFB as the third contributor to the fund, joining Poland’s BGK and the Czech Republic’s National Development Investments (NRI), both of which have made similar contributions.

Led by the European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, the 3SI Innovation Fund aims to raise a total of €180 million for investments in private equity, venture capital, and private credit funds, with a focus on supporting businesses in the region that are in the later stages of development. With the addition of MFB’s contribution, the combined commitments from national institutions now total €60 million, with EIF matching all contributions to the fund.

Marjut Falkstedt, Chief Executive of EIF, expressed her enthusiasm for the new funding:
“The MFB’s contribution to the 3SI Innovation Fund is a fantastic development. By pooling national resources across Central and Eastern Europe, we are boosting competitiveness, enhancing the EU internal market, and accelerating climate action. This initiative will not only stimulate innovation but also create new jobs across the region.”

The Three Seas Initiative Innovation Fund is designed to attract participation from up to nine countries in Central and Eastern Europe, including Hungary, Poland, and the Czech Republic. With further investments from EIF and private investors, the fund aims to mobilize up to €1 billion in financing, enabling business growth in the region. This investment is crucial in addressing the financing gaps that have historically hindered the development of companies in these countries, which are vital for maintaining their global competitiveness and sustainable growth.

The fund’s focus on innovation, climate action, and technological advancement aligns with the EU’s broader goals of economic integration and sustainable development. Funds like the 3SI Innovation Fund play a key role in driving technological progress and environmental sustainability by investing in high-potential sectors. They channel capital into green technologies and solutions, which are crucial for meeting global environmental targets.

These investments are expected to generate significant benefits, including job creation, productivity growth, and increased resilience in economies that are well-positioned for the challenges of a rapidly evolving global market focused on sustainability. By supporting clean energy and innovative technologies, the 3SI Innovation Fund will contribute to long-term economic growth and global competitiveness in Central and Eastern Europe.

Background information

The European Investment Fund (EIF):

EIF is part of the European Investment Bank Group (EIB) Group celebrating its 30th anniversary this year. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

MFB Hungarian Development Bank (MFB):

MFB is Hungary’s national promotional institution owned by the Hungarian State. The Bank has been operating as a financial institution with a focus on investments since 1993. As a development bank, MFB’s priority is to provide funding opportunities in areas where commercial banks cannot provide loans efficiently. Its core activities include the provision of preferential loans for domestic businesses and private individuals, the fulfilment of development requirements and fund management tasks in relation to the country’s European Union membership.

Media Contacts:

European Investment Bank Group:

Tibor Jóna, t.jona@eib.org, tel.: + 352437984105 / mobil: +352 691287052
Website: www.eib.org/press – Press Office: press@eib.org

MFB Hungarian Development Bank Plc.:

Marketing and Communications Department

Web: www.mfb.hu/en

E-mail: kommunikacio@mfb.hu

SOURCE: European Investment Fund