EIF and kompasbank Unlock €175 Million to Boost Danish SMEs and Green Initiatives

EIF and kompasbank Unlock €175 Million to Boost Danish SMEs and Green Initiatives

(IN BRIEF) The European Investment Fund (EIF) and Danish corporate bank kompasbank a/s have partnered to provide at least €175 million in new loans to Danish small and medium-sized enterprises (SMEs). Supported by the InvestEU programme, the three portfolio guarantee agreements will offer improved lending conditions such as lower interest rates and extended maturities. This initiative aims to enhance competitiveness, skills development, and sustainability projects, including climate change mitigation. EIF Chief Executive Marjut Falkstedt and kompasbank CEO Michael Hurup Andersen emphasized the importance of accessible financing for SMEs, particularly in supporting the green transition and economic growth.

(PRESS RELEASE) LUXEMBOURG, 3-Jul-2024 — /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), announces that it has partnered with Danish corporate bank kompasbank a/s to unlock €175 million in new lending for small and medium-sized enterprises (SMEs) in Denmark. Through three portfolio guarantee agreements, supported by the InvestEU programme, kompasbank will offer enhanced lending conditions, including lower interest rates and extended maturities. These guarantees aim to bolster competitiveness, skills development, and projects focused on sustainability and climate mitigation.

EIF Chief Executive Marjut Falkstedt emphasized the importance of accessible financing for SMEs in the Nordics, particularly those leading the green transition. She highlighted the ongoing collaboration with kompasbank as a key driver in providing targeted financial support for small businesses.

Michael Hurup Andersen, Founder & CEO of kompasbank a/s, pointed out the challenges Danish SMEs face in securing timely and sufficient financing, which hampers their growth initiatives and overall competitiveness. He expressed satisfaction with the EIF agreement, which will enable kompasbank to help hundreds of SMEs realize their growth ambitions, support the green transition, and increase investments in education and skills.

The guarantees, facilitated by the InvestEU programme, will allow kompasbank to engage in riskier lending segments, including start-ups. One part of the guarantee will focus on skills and education investments, another on supporting green and sustainable projects, particularly those addressing climate change mitigation. This comprehensive approach aims to foster a dynamic and resilient Danish SME sector.

Background information

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

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.

kompasbank A/S

kompasbank is a Danish business bank for small- and medium-sized companies that provides loans for fixed- and current assets, working capital, property and minor acquisition financing. kompasbank secured a full EU banking licence from the Danish FSA in March 2021, and began operations in full by January 2022. The bank licence is applicable to all EU countries, and is currently operating in Denmark, Germany and Spain.

For more information: www.kompasbank.dk.

Press contacts

EIB Group: Tim Smit | +352 691 286 423 | t.smit@eib.org
European Commission: Ignazio Cocchiere | +32 2 29 82261 | ignazio.cocchiere@ec.europa.eu
kompasbank a/s:
 Kasper Kankelborg | +45 2613 5771 | kasper@kompasbank.dk

SOURCE: European Investment Fund

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