EIF guarantees regional banks in Sweden for environmental SME loans

The European Investment Fund (EIF) has today signed guarantee agreements with Sparbanken Finn and Sparbanken Gripen within the framework of the Growth and Environment Scheme. Under these agreements, the banks will extend environmental loans to small and medium-sized companies at preferential financial conditions during a period of two years for a total of ¬ 20 million (SEK 160 m).

Sparbanken Finn and Sparbanken Gripen are independent savings banks with a strong market presence in the south of Sweden. Both banks have demonstrated an innovative approach to their business and they are seen as ideal promoters of the Growth and Environment Scheme in their respective markets.

The Growth and Environment Scheme

Under the Growth and Environment Scheme, smaller companies with up to 100 employees receive loans at beneficial conditions for environmentally-friendly investments, i.e. investments that produce significant environmental benefits (even if the environment is not the main aim) or that are carried out by companies active in the eco-industry.

Financial institutions participating in the Scheme are able to offer better financing terms due to a free-of-charge guarantee from the European Investment Fund, through sponsorship of the European Union.

Under this Scheme, the EIF has so far entered into guarantee agreements with 28 financial institutions in the 15 Member States of the European Union, corresponding to a total loan volume of approximately ¬ 1.3 billion (SEK 10.4 billion).

Interested companies should approach the banks directly for more details on how to benefit from this Scheme.

The European Investment Fund was established in 1994 as a partnership bringing together the European Investment Bank, the European Union and private and public financial institutions from all 15 Member States.

Its objective is to act as a catalyst and to support the integration of the European Union by issuing guarantees for debt finance for trans-European networks (TENs) and by facilitating access to investment finance for small and medium-sized enterprises (SMEs) through portfolio guarantees and equity investments in venture capital funds.