First EIF guarantee deal in Denmark under CIP

EIF has signed a counter-guarantee deal with Vaekstfonden, allowing the guarantee institution to strengthen its own guarantee offer benefiting Danish businesses, start-ups and companies with innovative projects. Thanks to the CIP cover, Vaekstfonden will be able to boost its guarantee capacity and grant more guarantees, thus enhancing access to finance for Danish SMEs. Vaekstfonden is a public financial institution granting guarantees, loans, and investing in several fund and fund-of-fund structures, all for the benefit of SMEs with growth potential and without full access to traditional debt or equity financing. The transaction generates a new portfolio of guarantees worth EUR 365m.

About EIF

The EIF central mission is to support Europe’s SMEs by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About CIP

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1 bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG). EIF’s investment is funded by the European Union, through the Competitiveness and Innovation Framework Programme (CIP). CIP is a EUR 1.1bn facility managed by EIF, which is be split between Venture Capital and Guarantees. It covers the period 2007- 2013. CIP’s objectives are to generate economic growth and create more jobs as well as boost productivity, competitiveness and innovation in the EU, optimizing the use of European Union funds to support SME’s access to finance.

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