Small and medium-sized enterprises (SMEs) in Finland and Sweden are now offered green loans at reduced interest rates thanks to a collaboration between Nordea and the European Investment Fund (EIF).
New loans will only be granted to finance investments that meet strict sustainability criteria. This concerns, for example, solar and wind power plants, clean transport providers and pollution prevention companies.
The business loan initiative is part of the European Union’s investment plan, which promotes sustainable and long-term economic growth in Europe. Nordea has entered into a unique agreement and commitment with the EIF on stimulating green lending to support sustainability and economic growth.
The favorable offer was made possible by an agreement, in which Nordea purchased € 1.8 billion credit risk insurance from the EIF. As part of the deal, Nordea has committed to issue green corporate loans up to € 400 million at lower rates without EIF credit risk protection.
This is the second agreement concluded between Nordea and the EIF in 2021. In March, Nordea reached an agreement with the EIF to support SMEs in Sweden, Finland and Denmark with attractive loan terms to handle the temporary circumstances. of COVID-19 or to accelerate their growth.
Motivate customers to switch to green credits
“We are proud to participate in the implementation of the European initiative and to help SMEs in their transformation towards sustainability with attractive green loans and advice – ultimately achieving sustainable reductions in CO2 emissions », Said Peter Dalmalm, head of Nordea Business Banking in Sweden.
Nordea will use the agreement to approach and motivate clients with traditional loans on green investments and projects to seize the opportunity to convert them to green loans instead. At the same time, Nordea has committed, as part of the agreement, to issue new green loans to businesses at lower rates than usual.
“The agreement with the EIF will also help us achieve our own sustainability goals. At the same time, we are further improving our capabilities to respond to a growing interest in sustainable finance among SMEs with an attractive package, ”said Aleksi Lehtonen, Director of Nordea Business Banking Services in Finland
Nordea is committed to achieving net zero emissions by 2050 and reducing the CO2 emissions of its loan portfolio by 40 to 50% by 2030.
Boost the economy in difficult times
Alain Godard, Managing Director of the European Investment Fund, finds the timing of the optimal agreement:
“The EIB Group is very happy to have successfully completed its first securitization transaction with Nordea to provide green financing to SMEs and mid-cap companies. This operation stimulates the supply of financing in the real economy in these difficult times and promotes an economic recovery based on a sustainable green transformation.
Nordea Bank Abp published this content on September 15, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 15, 2021 08:51:06 AM UTC.