EIF and Denmark’s Export and Investment Fund Guarantee €30.9m in New Loans for Danish Businesses

EIF and Denmark’s Export and Investment Fund Guarantee €30.9m in New Loans for Danish Businesses

(IN BRIEF) The European Investment Fund (EIF) and Denmark’s Export and Investment Fund have signed an agreement to provide a sustainability guarantee for new loans to support Danish businesses. The guarantee, backed by the InvestEU program, will enable the Danish state fund to approve loans of up to €77.3 million for small and medium-sized enterprises. The loans will be directed towards projects that promote energy conservation, renewable energy, and resource efficiency, helping to bridge the gap between traditional bank financing and equity capital. This agreement is an important milestone for Denmark’s Export and Investment Fund as it marks its participation in the InvestEU program.

(PRESS RELEASE) LUXEMBOURG, 1-Mar-2023 — /EuropaWire/ — The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), and Denmark’s Export and Investment Fund have entered into an agreement to provide a sustainability guarantee for approximately DKK 229 million (€30.9 million) in new loans to support Danish businesses. The InvestEU programme will back this initiative. The guarantee will facilitate fresh debt financing for small and medium-sized enterprises, allowing the Danish state fund to approve loans of up to DKK 575 million (€77.3 million) for domestic businesses.

This sustainability guarantee aims to bolster the financing options available to small and medium-sized enterprises, helping to drive Europe’s green transition. The loans will be directed towards projects that promote energy conservation, renewable energy, and resource efficiency. The initiative aims to bridge the gap between traditional bank financing and equity capital.

Denmark’s Export and Investment Fund serves as the sovereign investment fund of Denmark, resulting from the consolidation of EKF Denmark’s Export Credit Agency, the growth fund Vaekstfonden, and the Danish Green Investment Fund. The fund provides Danish companies with access to state-funded risk capital through a single point of contact. As one of Denmark’s first financial institutions to participate in the InvestEU programme, this agreement marks an important milestone for the fund.

Morten Bødskov, Danish Minister for Industry, Business and Financial Affairs, said: “If we are to succeed with the green transition, we need to ensure that risk capital is available to achieve our ambitious green goals. InvestEU plays a central role in the green transition across the entire European Union by financing green and sustainable projects across member nations. With the establishment of Denmark’s Export and Investment Fund, we now have an ambitious player in Denmark. The agreement with the European Investment Fund gives it even more firepower to fund the green transition of Danish businesses.”

Peder Lundquist, chief executive officer of Denmark’s Export and Investment Fund, said: “The green transition requires long-term risk capital because the solutions needed to cross the finish line require large investments. Global competition means that we, as the state loan fund, play a crucial part in the task of developing and commercialising new technologies and enabling a green transition for the entire business community. We are therefore happy to have the opportunity to cooperate with a global entity such as the European Investment Fund, so that we can help make way for the green businesses that are going to make Denmark richer and the world greener.”

EIF Chief Executive Marjut Falkstedt said: “We are very happy to be partnering with Denmark’s Export and Investment Fund, a leader in green financing. This agreement, which was made possible by the InvestEU programme, will channel financing to Danish businesses to help them on their path to a more sustainable, greener future. Public entities need to make every effort to support European businesses in their green transformation and this transaction does precisely that.”

European Commissioner for the Economy Paolo Gentiloni said: “InvestEU is playing an important role across Europe in helping small and medium-sized businesses gain access to the finance they need to innovate, expand and create jobs. This investment can also help them green their business, thereby making a major contribution to our transition to a low-carbon economy. I am delighted that, thanks to this agreement, more Danish businesses will receive the support they need to fulfil their full potential.”

The European Investment Fund (EIF) is a member of the European Investment Bank Group, which aims to assist small and medium-sized enterprises (SMEs) in accessing finance. The EIF develops venture and growth capital, guarantees, and microfinance instruments that are specifically designed for this market segment, thereby promoting key EU policy objectives, such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, among others.

The InvestEU programme is a crucial source of long-term financing for the European Union, leveraging significant public and private funds to support a sustainable recovery. The programme helps to generate additional investments aligned with key European priorities, such as the European Green Deal, the digital transition, and support for SMEs. By bringing together various EU financial tools, the InvestEU programme simplifies project financing, making it more efficient and flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through multiple financial partners, who will invest in projects using the EU budget guarantee of €26.2 billion, to mobilise at least €372 billion in additional investments.

Denmark’s Export and Investment Fund is the result of a merger between three existing state funds – Vaekstfonden, EKF Denmark’s Export Credit Agency, and the Danish Green Investment Fund. Together, they offer risk capital financing to entrepreneurs, small and medium-sized companies, and export companies.

Press contacts

European Investment Fund
Kristiina Randmaa, tel.: +352 4379 72894 — k.randmaa@ext.eib.org
Follow us on Twitter@eif_eu
Website: www.eif.org — Press Office: +352 4379 21000 — press@eib.org

Denmark’s Export and Investment Fund
Sara Kleist, Communications Advisor

+45 42372950
mail: skl@vf.dk

www.eifo.dk

SOURCE: European Investment Fund