Danske Bank has signed a guarantee agreement with the European Investment Fund (EIF) that will make up to €178 million available in fresh financing for small and medium-sized enterprises (SMEs) and small mid-cap companies in the Nordic countries.
The guarantee will provide Nordic SMEs with improved access to financing for investments related to the green transition and digital technologies. The EIF guarantee is supported by the European Commission under its InvestEU programme.
“Three-fifths of the guarantee will be allocated to support sustainability objectives, with funds allocated to businesses or projects that promote, for example, renewable energy and energy efficiency,” said the EIF.
“The remaining two-fifths will target innovation and digitalisation, facilitating access to finance for research- and innovation-driven companies.”
EIF deputy CEO Merete Clausen said: “After our collaboration regarding SMEs in Finland, this is the second EIF deal with Danske Bank, focusing on Denmark, Sweden and Norway.
“This collaboration is important for us also because of the broad network of Nordic SMEs that Danske Bank serves. The EIF’s mission is to improve access to finance for small and medium-sized companies, partnering with one of the most important financial institutions in the Nordics allows us to reach a lot of local businesses with more advantageous financing.”
The new agreement will be rolled out in Denmark, Norway and Sweden before the summer, with the first loans expected to be issued in Sweden in the coming days.
Christin Tuxen, Nordic head of Direct Banking at Danske Bank, said: “The guarantees from EIF offer many benefits. Firstly, they can make financing cheaper and more accessible for our smaller business customers by reducing our lending risk, which affects the price and size of the loans we can offer.
“Additionally, the guarantees boost investments in Europe in a very flexible and efficient way, strengthening European growth and competitiveness – something that is crucial for us at Danske Bank to support.”