EIF Pledges €70 Million to Boost Nordic Green Financing with Nefco Partnership

EIF Pledges €70 Million to Boost Nordic Green Financing with Nefco Partnership

(IN BRIEF) On 26 March 2025, the European Investment Fund (EIF) pledged €70 million to the Nordic Environment Finance Corporation (Nefco) under the InvestEU programme, marking a significant step in financing sustainable growth across the Nordic region. The guarantee will enable Nefco to offer preferential loans with reduced interest rates to SMEs and Mid-Caps in Denmark, Finland, Iceland, Norway, and Sweden. Covering up to €100 million in financing at a guarantee rate of up to 70%, the funds will target technological innovations in clean power, energy savings, and the circular economy. This initiative, the first of its kind for Nefco with EIF, has received strong endorsements from industry leaders, with EIB Vice-President Thomas Östros and Nefco Managing Director Trond Moe emphasizing its role in fostering competitive, sustainable growth and bridging the financing gap for green solutions in the region.

(PRESS RELEASE) LUXEMBOURG, 26-Mar-2025 — /EuropaWire/ — In a groundbreaking move to bolster sustainable economic growth in the Nordic region, the European Investment Fund (EIF) has announced a commitment of €70 million to the Nordic Environment Finance Corporation (Nefco). This pioneering guarantee, structured under the InvestEU programme, will empower Helsinki-based Nefco to extend favorable loan terms to small and medium-sized enterprises (SMEs) as well as Mid-Caps across Denmark, Finland, Iceland, Norway, and Sweden.

The guarantee is designed to offer Nordic companies access to reduced interest rates, enabling them to invest in climate action and environmental sustainability initiatives. By covering up to €100 million in Nefco financing with a guarantee rate of up to 70%, the arrangement targets technological projects in sectors such as clean power, energy efficiency, and the circular economy—thus accelerating Europe’s transition to a low-carbon future. Notably, Nefco becomes the first international financial institution to forge such an agreement with the EIF.

EIB Vice-President Thomas Östros commented, “This collaboration is a testament to our commitment to fostering sustainable and competitive growth in the Nordic region. By providing this guarantee, we are enabling SMEs to access the financing they need to innovate and thrive.” Echoing this sentiment, Nefco Managing Director Trond Moe stated, “Nefco finances the international scale-up of Nordic green solutions with the potential to create a positive global impact. This EIF guarantee helps us bridge the financing gap and empower SMEs to scale innovations, thereby building a more resilient and sustainable economy.”

This first-of-its-kind accord underscores the EIF’s unwavering dedication to promoting green growth by ensuring that vital capital is accessible to forward-thinking companies in the Nordics.

Background information

About the EIF:

The European Investment Fund is part of the European Investment Bank Group. 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, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more.

About InvestEU programme:

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About Nefco:

Nefco, the Nordic Green Bank, finances the initial scale-up of Nordic green solutions on global markets. Founded in 1990 by the five Nordic countries, Nefco serves the interests of its owners, Denmark, Finland, Iceland, Norway and Sweden. Nefco’s task is to work with concrete actions to accelerate the green transition. To date, more than 650 Nordic growth companies have received financing through Nefco. Nefco evaluates its impact against the EU Taxonomy, the UN Sustainable Development Goals and its own environmental and sustainability criteria.

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org  — press@eib.org

Nefco

Anni Rein

M. +358 10 6180 852, e-mail: anni.rein@nefco.int
Website: www.nefco.int

SOURCE: European Investment Fund