InvestEU-backed initiative offers businesses in Finland access to affordable financing for energy efficiency and clean technology

InvestEU-backed initiative offers businesses in Finland access to affordable financing for energy efficiency and clean technology

(IN BRIEF) Finnish companies will gain access to over €400 million in financing for green and digital transformations through a partnership between Nordea Bank and the European Investment Fund (EIF). Backed by the InvestEU programme, the agreement provides SMEs and small Mid-Caps with up to €437 million in loans on favorable terms for projects like renewable energy, energy efficiency, and digital innovation.

Two EIF guarantees, the Sustainability Guarantee and the Innovation Guarantee, support environmentally friendly investments and the adoption of digital technologies. Nordea’s Head of Business Banking, Nina Arkilahti, emphasized the bank’s commitment to Finland’s green transition, while EIF Chief Executive Marjut Falkstedt highlighted the initiative’s role in fostering growth and sustainability. The agreement also extends support to businesses across Sweden, Norway, and Denmark.

(PRESS RELEASE) LUXEMBOURG, 16-Dec-2024 — /EuropaWire/ — Finnish companies are set to benefit from a groundbreaking financing agreement between Nordea Bank and the European Investment Fund (EIF), unlocking over €400 million in loans to support sustainable energy upgrades and digital advancements.

The agreement, facilitated by the EIF—part of the European Investment Bank (EIB) Group—will provide guarantees enabling small and medium-sized enterprises (SMEs) and small Mid-Caps in Finland to access up to €437 million in funding. This financing will target green and sustainable initiatives, such as adopting renewable energy solutions, improving energy efficiency, integrating digital technologies, and transitioning to electric mobility. Nordea will pass on these benefits through favourable terms, including reduced interest rates.

Nina Arkilahti, Head of Nordea Business Banking, emphasized the importance of the initiative: “This partnership underscores Nordea’s dedication to empowering Finnish businesses as they lead the way in sustainable development. With the EIF’s support, we can help our customers achieve their green transition goals and contribute meaningfully to Finland’s sustainable future.”

The guarantees underpinning this initiative are backed by the European Commission’s InvestEU programme, a flagship effort designed to mobilize over €372 billion in investments from 2021 to 2027 across critical EU policy areas, including green energy and digitalization.

Marjut Falkstedt, Chief Executive of the EIF, highlighted the agreement’s potential impact: “Collaborating with Nordea allows us to channel vital resources to Finnish businesses, fostering innovation and sustainability. This agreement ensures that small companies have the financial tools they need to grow while embracing environmentally conscious practices.”

Focused Financial Support for Green and Digital Innovation

The agreement includes two key EIF loan guarantee schemes tailored to the needs of Finnish SMEs and small Mid-Caps:

• Sustainability Guarantee: Aims to facilitate the shift towards a low-carbon, sustainable economy by supporting investments in renewable energy, decarbonization, and energy efficiency projects.
• Innovation Guarantee: Designed to boost access to funding for companies investing in research, innovation, and digital technology adoption.

This collaboration will enable Finnish businesses to remain competitive in a market increasingly focused on sustainability. Finland, recognized as a leader in sustainable development, stands to further its green transition through this initiative, reinforcing its economic resilience while reducing environmental impact.

Beyond Finland, the EIF and Nordea are also expanding their support to businesses in Sweden, Norway, and Denmark, ensuring the green and digital transformation reaches across the Nordic region.

Background information

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.

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.

Media Contacts:

Kristiina Randmaa
tel.: +352 4379 72894
k.randmaa@ext.eib.org
Website: www.eif.org
press@eib.org

SOURCE: European Investment Fund