A range of small and medium sized Finnish companies will receive more than €400 million in financing for energy upgrades as a result of a financing agreement between Nordea Bank and the European Investment Fund (EIF).

Under the guarantee agreement, small and medium-sized enterprises (SMEs) as well as small mid-caps in Finland will be able to tap projected financing of up to €437 million for green and sustainable investments such as solar panels, electric cars, energy efficiency, and the adoption of digital technologies.

The EIF, which is part of the European Investment Bank (EIB) Group, is providing guarantees that will ensure favourable terms, such as reduced interest rates, by Nordea.

“Nordea is committed to supporting Finnish businesses as they transition towards a greener future,” said Nina Arkilahti, Head of Nordea Business Banking. “The new EIF accord will offer even broader opportunities for our customers to play a key role in Finland’s green transition.”

The guarantees are backed by the European Commission’s InvestEU programme, which aims to trigger more than €372 billion in additional investment between 2021 and 2027 for EU policy priorities including the green and digital transitions.

“We’re delighted to work closely with Nordea to ensure that Finnish businesses receive the financial support needed for the green transition,” said EIF Chief Executive Marjut Falkstedt.

“This new agreement will boost access to funding, enabling small businesses to grow while driving a greener future.”

In addition to the new financing for Finnish SMEs and small mid-caps, the EIF is teaming up with Nordea to offer funding to businesses in Sweden, Norway and Denmark.