The European Investment Fund (EIF) and Danish corporate bank kompasbank have signed portfolio guarantee agreements to provide at least €175 million in new loans to Danish small and medium-sized businesses.
The EIF guarantees will allow kompasbank to support Danish companies with improved lending conditions such as reduced interest rates and longer maturities. The agreements are supported by the InvestEU programme, which aims to trigger more than €372 billion in additional investments over the period 2021-2027.
“Access to finance for SMEs continues to be an issue around the Nordics.”
Said EIF Chief Executive Marjut Falkstedt.
“Danish businesses play a leading role in the green transition and we’re happy to build on our partnership with kompasbank to support the availability of targeted financing for small companies – especially when it comes to supporting skills and financing climate change mitigation.”
“We often find that Danish SMEs have to drop specific growth initiatives or are forced to lower their ambitions because they do not have sufficient and fast enough access to financing. It is bad for companies’ competitiveness – but also for the economy and job creation – because it costs money when good and sound investment cases are put on standby,”
says Michael Hurup Andersen, Founder & CEO of kompasbank a/s and continues:
“We are pleased that, with the new EIF agreement, we can help hundreds of more SMEs to quickly and frictionlessly realize their growth ambitions while supporting the green transition and contributing to more investments in education and skills.”
The three EIF guarantees will enable and incentivise kompasbank to take on riskier lending segments, including start-ups. As the guarantees are supported under the InvestEU programme with a specific thematic focus, one part will target skills and investments related to education.
A second guarantee will focus on supporting Danish SMEs making investments for the green and sustainable transformation of the Danish economy, especially the ones focusing on projects targeting climate change mitigation. Finally, thanks to a specific guarantee aimed at riskier investments, Danish SMEs and start-ups can also look forward to new lending from kompasbank against improved conditions.
Featured image credit: edited from kompasbank
