EIF Allocates €30 Million to Support Swedish SMEs in Green Transition through Impact Lending Fund

EIF Allocates €30 Million to Support Swedish SMEs in Green Transition through Impact Lending Fund

(IN BRIEF) The European Investment Fund (EIF) has committed up to 320 million Swedish kronor (about €30 million) to Swedish Impact Lending 1, a pioneering green-financing initiative targeting small and medium-sized enterprises (SMEs) in Sweden. Managed by Svenska Hållbarhetsfonden Förvaltnings AB, the fund aims to help Swedish businesses transition to greener operations by providing loans from non-bank lenders. Backed by the InvestEU programme, the initiative will support companies adopting sustainable business models and technologies, aligning with the European Union’s Corporate Sustainability Reporting Directive (CSRD). EIB Group Vice-President Thomas Östros emphasized the importance of sustainable financing for SMEs, while Joakim Friis, CEO of the fund management firm, expressed pride in the EIF’s trust, highlighting the growing interest in green investments.

(PRESS RELEASE) LUXEMBOURG, 10-Feb-2025 — /EuropaWire/ — The European Investment Fund (EIF) has pledged up to 320 million Swedish kronor (approximately €30 million) to a groundbreaking green financing initiative designed to support small and medium-sized enterprises (SMEs) in Sweden. This commitment is directed towards a new fund led by Svenska Hållbarhetsfonden Förvaltnings AB, a Swedish credit fund manager, and aims to help Swedish businesses reduce their environmental impact.

The initiative, known as Swedish Impact Lending 1, marks the country’s first impact lending fund, targeting total investments of at least SEK 800 million. Through this fund, SMEs in Sweden will have access to loans provided by non-bank lenders, offering an alternative financing model that supports businesses in their transition to greener and more sustainable operations.

The EIF’s involvement, made possible through the InvestEU programme, underscores the European Investment Bank (EIB) Group’s ongoing commitment to fostering sustainable economic growth. The funding will specifically target Swedish companies that are making strides in sustainability, whether through innovative green technologies, investments aligned with the European Union’s Corporate Sustainability Reporting Directive (CSRD), or regulatory adaptation for a greener future.

“Economic growth and innovation in Sweden rely heavily on the success of SMEs,” said Thomas Östros, Vice-President of the EIB Group. “Ensuring these businesses have access to sustainable financing is vital for maintaining their competitive edge during the green transition. This investment provides a critical opportunity for Swedish businesses to meet new regulatory requirements while tapping into the growing sustainable economy.”

Swedish Impact Lending 1 will primarily attract professional investors based in Sweden. The EIF’s backing will strengthen the fund’s ability to impact the market, further advancing its mission to support the green transition.

Joakim Friis, CEO of Swedish Impact Lending Fund Management, expressed his enthusiasm: “Receiving this support from the EIF is a great honour. It reinforces the importance of our work and the impact we aim to create in Sweden’s sustainable transition. With growing interest in our offerings, we are poised to offer Swedish businesses the resources and opportunities they need to thrive in a more sustainable world.”

Background

EIF

The EIF is part of the European Investment Bank (EIB) Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, 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 who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

Swedish Impact Lending 1

Swedish Impact Lending 1 will become Sweden’s first impact lending fund. The fund aims to provide loans to Swedish small and medium-sized enterprises (SMEs) in need of sustainable transition. The fund is expected to play a crucial role in the market as access to credit has diminished due to the tightened credit appetite of banks. Swedish Impact Lending 1 will apply an integrated ESG, Impact and credit model. The team behind the fund has extensive experience in the financial sector and possesses specialized expertise in sustainable investments through Sasja Beslik. The fund is expected to commence operations in the third quarter of 2025.

Media Contacts:

EIB Group:

Thomas Eriksson | t.eriksson@ext.eib.org

Swedish Impact Lending 1:       

Kaisa Fexe | kaisa.fexe@hallbarhetsfonden.se

Joakim Friis | joakim.friis@hallbarhetsfonden.se

SOURCE: European Investment Fund