Merkur Andelskasse to offer affordable financing for sustainable initiatives in Denmark with EIF guarantee

Merkur Andelskasse to offer affordable financing for sustainable initiatives in Denmark with EIF guarantee

(IN BRIEF) Merkur Andelskasse, one of the leading financial institutions in Denmark, has signed a guarantee agreement with the European Investment Fund (EIF) under the InvestEU programme. This agreement will allow Merkur to offer a range of lending solutions to small and medium-sized Danish companies, supporting their transition to a more sustainable and greener economy. The guarantee can provide up to DKK 111,549,000 (EUR 15 million), and the total amount of new financing made available to Danish companies could be up to DKK 160 million (EUR 21.5 million). Through this partnership, the EIF is supporting Merkur in its efforts to promote sustainability and social responsibility projects in Denmark.

(PRESS RELEASE) LUXEMBOURG, 15-Feb-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), is pleased to announce that it has signed a guarantee agreement with Merkur Andelskasse, one of Denmark’s leading financial institutions, under the InvestEU programme. The guarantee, which can provide up to DKK 111,549,000 (EUR 15 million), will enable Merkur to offer a range of lending solutions to Danish SMEs, supporting their transition to a more sustainable and greener economy.

Merkur is one of the first financial institutions in Denmark to sign an InvestEU guarantee agreement fostering sustainability and social responsibility projects. The bank will provide eligible debt financing to SMEs and small mid-caps at more affordable terms, with a total amount of up to DKK 160 million (EUR 21.5 million) in new financing made available to Danish companies in the form of leasing contracts and loans.

Through this partnership, the EIF is supporting Merkur in its efforts to promote sustainability and social responsibility projects. Merkur is a longstanding partner of the EIF and operates countrywide, also supporting regions and rural areas where finance is not always easily accessible.

The InvestEU programme is a crucial instrument in supporting the transition to a sustainable economy in Europe, and the EIF is proud to support Merkur in its commitment to this cause. The EIF guarantees provided under the InvestEU programme will help to provide more affordable financing to Danish SMEs, enabling them to invest in sustainable projects and initiatives that will benefit the environment and society as a whole.

Overall, this partnership between the EIF and Merkur Andelskasse is a strong example of how financial institutions can work together to promote sustainable finance and support the transition to a greener economy.

EIF Chief Executive Marjut Falkstedt said: “We are very happy to renew our partnership with Merkur, this time under the InvestEU programme. This agreement is designed to channel financing to Danish businesses – also in rural areas – to help those that are pursuing a green and sustainable transition. We are confident this collaboration can generate financial support that will allow these businesses to take important steps forward in the green transition.”

Charlotte Skovgaard, CEO of Merkur Cooperative Bank, added: “The InvestEU guarantee is crucial in the efforts of speeding up a sustainable transition. In Merkur we’re equally happy and proud that this agreement increases the amount that we can channel to SMEs working for sustainable progress within our core business fields of environmental-, climate-, nature- and social sustainability. This will reinforce our sustainable efforts and enable even more Danish SMEs, also in rural areas, to get their visionary projects financed.”

European Commissioner for Economy, Paolo Gentiloni, said: “InvestEU is playing an important role in helping businesses gain access to finance and accelerating the green transition. I am delighted that, with this agreement, InvestEU is helping businesses in Denmark unlock the funds they need while improving their sustainability and making important social contributions to their communities.”

Background information

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s 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 like 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 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 SMEs. 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 has 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, mobilising upwards of €372 billion in additional investment.

Merkur Cooperative Bank is Denmark’s largest values-based bank, combining classical banking with a vision of a sustainable society. Merkur Cooperative Bank has been a forerunner of sustainable development and social responsibility in the Danish banking sector since 1982.  Merkur gives and facilitates financial advice and financing to both personal and business customers. On the business side Merkur finances profit making enterprises within sustainable production and not-for-profit institutions and associations within cultural and social fields, having the strictest screening of customer sustainability in the Danish financial sector.

SOURCE: European Investment Fund