The European Investment Fund (EIF) has finalised agreements with eight leading banks and financial institutions in Finland to assist small and medium-sized enterprises (SMEs), small mid-caps and housing associations. The agreements will facilitate around €1 billion in lending to invest in projects that promote Finland's climate objectives and environmental sustainability.
The guarantees will enable partner banks to offer better financing terms, such as lower interest rates. Additionally, thanks to the EIF guarantees in place, banks can provide longer maturities with lower collateral requirements, among other things. The agreement will therefore benefit startups that could have otherwise faced obstacles in securing financing for their investments, and help housing associations to finance necessary energy efficiency renovations. The guarantee may cover up to 70-80% of each loan's amount.
Eight banks and financial institutions covered
The EIF has concluded agreements with the following banks and financial institutions: Aktia, Danske Bank, Finnvera, Nordea Bank, Oma Savings Bank, OP Cooperative, POP Bank and Ålandsbanken. Thanks to the InvestEU Sustainability Guarantee, these partner banks will be able to step up their support for the green and sustainable transformation of the Finnish economy, and finance end beneficiaries' environmentally friendly, green and inclusive investments.
"The new source of financing totalling one billion euros is a most welcome addition to the market. The sustainability guarantee loan will encourage SMEs and housing companies to also invest in energy efficiency of buildings and clean energy. I hope that the loan guarantee will boost investments in the real estate and construction sector now that the difficult economic situation has slowed down new construction and renovation and the Energy Performance of Buildings Directive brings new requirements," says Minister of Climate and the Environment Kai Mykkänen.
Banks and financial institutions involved in the programme may be contacted directly
