A guarantee from the European Investment Fund enables the Export and Investment Fund of Denmark (EIFO) to aid Danish businesses in the creative and cultural sectors.
The partnership will make available DKK 300 in new lending Danish businesses in the creative and cultural professions with access to capital under favourable terms.
Guarantees made possible with support of InvestEU programme, which aims to trigger over €372 billion in additional investment over the 2021-2027 period.

Brussels/Luxembourg/Copenhagen, 26 September 2024: Businesses in the design, game development, IT development, music, filmmaking, or the art sectors can now get easier access to capital and at a lower interest rate. This is the result of a collaborative initiative between EIFO and the European Investment Fund. The agreement is supported by the European Union under its InvestEU initiative, which aims to trigger more than €372 billion in additional investments up to 2027. As a result, EIFO can offer attractive loans backed by an EIF-guarantee for up to 300 million DKK to Danish businesses within the creative and cultural professions.

“Access to finance for businesses in the creative and cultural sectors continues to be an issue in Denmark and across the EU in general,” Said EIF Chief Executive Marjut Falkstedt. “It can be difficult for banks to rate the businesses’ credit, as there is often an assumption of a higher risk in connection to creative projects, even though this is not necessarily true. Through this collaboration, our aim is to eliminate part of the risk and help to channel financing towards the cultural and creative sectors that play such a critical role in our society and identity.”

“The creative and cultural businesses hold the potential to putting Denmark on the world map and be catalysts for growth, innovation, and renewal. It is vital that we acknowledge the large potential and competitive power within these industries, and there is a need for better terms in financing for these businesses. With our willingness to take risks in financing, EIFO paves the way for those who dare to think bigger, and we are glad to be able to contribute to this very special agreement through EIF,” says Signe Thustrup Kreiner, Chief Commercial Officer, EIFO.

Supports creative and cultural businesses

The creative and cultural sector covers more than 7 million jobs within the EU and is accountable for 4.2 percent of the block’s BNP. The sector provides a substantial contribution to the economy, and this new agreement targets some of the many financial bottlenecks within the sector. The objective is to ensure that rigid credit evaluations and limited options for loans do not stand in the way of the sectors’ ability to develop itself.

Traditionally, the financing of the industries has been characterised by support programmes and subsidies, but EIFO sees great potential for financing through loans, which this new guarantee program enables. Specifically, the agreement will make EIFO even more flexible when addressing the budget of the business at hand, and in some instances the business can achieve an interest rate reduction of up to 4% when compared to the usual interest rates offered by EIFO.

Background information

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. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, 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 economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, 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 invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

EIFO is the national promotional bank and export credit agency of Denmark combined in one financial institution. Active in over 100 countries, and with a total business volume of more than EUR 20 billion, EIFO provides financial solutions for Danish companies and their global partners, while also investing in startups and funds. We exist to open doors for Danish global business, accelerate the green transition, promote new technologies and develop the Danish defense industry. With our willingness to take risks in financing, EIFO paves the way for those who dare to think bigger.

Press contacts

EIB Group: Tim Smit | +352 691 286 423 | t.smit@eib.org
European Commission: Ignazio Cocchiere | +32 2 29 82261 | ignazio.cocchiere@ec.europa.eu
EIFO: Sara Kleist | +45 42 37 29 50| skl@eifo.dk