What we do
Public consultation on the EIB Group's Environmental and Social Sustainability Framework - informational webinars
Public consultation on the EIB Group's Environmental and Social Sustainability Framework
The EIF in 2020
Coronavirus: The EIB Group’s initiatives to address its economic consequences
Pan-European Guarantee Fund – EGF
Sustainable Development Umbrella Fund
SDUF Health Compartment
Equity products
AI Co-Investment Facility
Climate & Infrastructure Funds
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
ESCALAR Programme
Debt products
New ESIF ERDF Guarantee Fund initiative in Greece
EFSI Private Credit Programme
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
Skills & Education Guarantee Pilot
EREM debt products
Single EU Debt Financial Instrument
InnovFin SME Guarantee Facility
COSME - Loan Guarantee Facility
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Dutch Future Fund (DFF)
Dutch Alternative Credit Instrument (DACI)
PORTUGAL BLUE: a new initiative for blue economy investments
JEREMIE Greece Reflows – Business Angels’ Co-Investment Equity Instrument
German Corona Matching Facility (CMF)
Portugal Growth programme
Croatian Growth Investment Programme (CROGIP)
Central and Eastern European Technology Transfer (CEETT)
AGRI Italy Platform Uncapped Guarantee Instrument
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund 1 (BIF 1)
Baltic Innovation Fund 2 (BIF 2)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
ESIF Fund-of-Funds Greece
EAFRD FoF Portugal
EAFRD FoF Romania
The ERP-EIF Facility
ERP-EIF Co-Investment Growth Facility
The LfA-EIF Facilities
The German Future Fund (GFF) - EIF Growth Facility
INAF – French National Agricultural Initiative
ESIF Energy Efficiency and Renewable Energy Malta
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
JEREMIE Romania Reflows – Equity Instrument
Luxembourg Future Fund (LFF)
Mezzanine 'Fund of Fund' for Germany (MDD)
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)
EAFRD FoF Greece

EU and Luminor support Baltic SMEs and Mid-Caps

    Date: 17 December 2020
  • The EIB and EIF have issued a guarantee to Luminor Bank AS for new lending to SMEs and Mid-Caps in the Baltic States.
  • This synthetic securitisation transaction with Luminor is part of the EIB Group’s COVID-19 response announced in March to help companies through the current crisis.
  • Part of the transaction is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the European Commission’s Investment Plan for Europe.

The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has issued a guarantee to Luminor AS to support new lending to companies based in all three Baltic States. The facility is meant to help mitigate the impact of COVID-19 on the Baltic economies. Through a synthetic securitisation transaction – the first of its kind in the Baltics – between Luminor and the EIB Group (with support from the Investment Plan for Europe), Luminor will provide additional lending to small and medium-sized enterprises (SMEs) and Mid-Caps in these difficult economic conditions. The guarantee structure can support at least €660 million of additional loans and leases to SMEs and Mid-Caps in all three Baltic countries.

Erkki Raasuke, CEO of Luminor, commented: “We are delighted to work with the EIB Group to increase the availability of funding to Baltic SMEs and leasing customers. This facility, the first of its kind in the Baltics, will support businesses over the long term and is testament to our belief in lending excellence and innovation.”

Executive Vice-President of the European Commission Valdis Dombrovskis said: “I am glad that with a guarantee under the Investment Plan for Europe, the EIB Group and Luminor bank are joining forces to make at least €660 million of additional lending available, mainly to SMEs and mid-cap companies in Latvia, Estonia and Lithuania. Banks are essential for Europe’s recovery. They keep the economy financed by providing liquidity to households and businesses, and especially to SMEs – the backbone of our economy. The European Union will continue to support businesses in these difficult times to weather the crisis and get the recovery properly underway.”

EIB Vice-President Thomas Östros said: “The EIB Group promised it would support European companies when the economic downturn first became apparent, and we are glad that this support is now becoming available in greater numbers in all three Baltic States. The economic fallout of the COVID-19 crisis is being felt around the European Union, and SMEs especially are among the hardest hit companies. The EIB and the EIF are making available as much financing as possible to help ensure that companies survive.

EIF Chief Executive Alain Godard added: “The main objective of this transaction is to improve access to finance for SMEs and Mid-Caps during the pandemic. By taking on part of Luminor’s risk-weighted assets, we are creating space for them to lend more to companies in the Baltics. We hope that this transaction will have a signalling effect for other financial intermediaries in the region, by showing the possibilities of Europe’s financing institutions.”

Luminor will retain a first-loss piece of the securitised portfolio, with the EIF backing the senior tranche, which the EIB will partly counter-guarantee. A further EIB guarantee of the mezzanine tranche benefits from partial backing under the European Fund for Strategic Investments (EFSI), the main pillar of the European Commission’s Investment Plan for Europe.

Nordea has acted as sole structuring advisor for Luminor on the transaction.

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2019 alone, the Bank provided nearly €530 million for projects in the Baltic States. Over the last five years (2015-2019), this figure was well over €2.5 billion.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF promotes EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

The European Fund for Strategic Investments (EFSI) is the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB Group to invest in riskier projects. The projects and agreements approved for financing under EFSI have so far mobilised €535.4 billion in investment, benefiting over 1.4 million SMEs.

Luminor is the third-largest provider of financial services in the Baltics, providing banking and financial services to help individuals, companies and institutions (or customers) grow across its home markets of Estonia, Latvia and Lithuania.

Press contacts:

EIB Group: Tim Smit, t.smit@eib.org, tel.: +352 43 79 89076 / Mobile:  +352 691 28 64 23
Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org

Luminor: Ivi Heldna, +372 523 1192, Ivi.Heldna@luminorgroup.com 

European Commission: Flora Matthaes, +322 298 3951, flora.matthaes@ec.europa.eu



We use cookies to give the best browser experience on our website. or change cookie settings.

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.


Copyright ©

 European Investment Fund 2021 – The European Investment Fund is not responsible for the content of external internet sites.