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. In line with the EIF’s mission, 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. The remaining two-fifths will target innovation and digitalisation, facilitating access to finance for research- and innovation-driven companies.

“After our collaboration regarding SMEs in Finland, this is the second EIF deal with Danske Bank, focusing on Denmark, Sweden and Norway,” commented EIF deputy Chief Executive Merete Clausen. “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.

"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," said Christin Tuxen, Nordic head of Direct Banking at Danske Bank.

Danske Bank’s collaboration with the European Investment Bank Group – of which the EIF is a part – began last year, when small and medium-sized businesses in Finland were provided with guarantees worth €50 million to support green investments. Among other outcomes, this has enabled the financing of the Finnish technology company Resand. Specialising in foundry sand regeneration, Resand’s solution cleans used sand on-site, enabling its reuse and significantly reducing the need for virgin sand – thereby minimising environmental impact.

Background information
The European Investment Fund (EIF): The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

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 EU 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 who will invest in projects using the EU budget guarantee of €26.2 billion. With the InvestEU mandate, European institutions – led by European Commission and EIB Group – aim to mobilise more than EUR 372 billion of public and private investments to finance sustainable investment, innovation and job creation throughout Europe over the period 2021-2027.

Danske Bank is the largest bank in Denmark. The bank serves personal customers, businesses and large institutional clients. For more than 150 years, Danske Bank has helped enable growth and development in society. The bank has grown in tandem with the societies it is part of and its advisory services, expertise and financial solutions have helped individuals, families, businesses and organisations to realise their ambitions and potential. With long-term sustainable development as an ambition, the bank aims to be the best possible bank for the benefit of customers, employees, shareholders and the societies it is part of.

Press contacts:
EIB Group: Tim Smit | +352 691 28 64 23 | t.smit@eib.org
EC Representation in Denmark: Christina Holm-Eiberg | +45 33 41 40 20 | christina.holm-eiberg@ec.europa.eu
Danske Bank: Ulrik Scheibye | +45 50 42 70 43 | ulrs@danskebank.dk