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The European Investment Fund (EIF) and Denmark’s Export and Investment Fund have signed a guarantee agreement to support over DKK 318 million (€42.7 million) in new loans to Danish businesses investing in digitalisation and innovation, such as research and development activities, as well as the adoption of new technologies. The agreement is backed by the InvestEU programme under the “Innovation and Digitalisation” window and will thus support new debt financing for small and medium-sized enterprises.
The guarantee will support new financing for small and medium-sized enterprises to contribute to Europe’s digitalisation and innovation goals. The Danish Export and Investment Fund expects to finance around 130 different investments with loan sizes in the vicinity of DKK 2,5 million (approximately €336.000). The intermediated loans will allow smaller companies to more easily finance research and innovation activities, a priority for the EU.
Morten Bødskov, Danish Minister for Industry, Business and Financial Affairs, said:.
“Danish companies are world leading in digital solutions and with the agreement between Denmark’s Export and Investment Fund and the European Investment Fund we can give both smaller and medium sized Danish companies the best framework for growth. It is imperative that we support Danish companies and provide them with access to venture capital. It’s an important step towards more digitalization.”
Peder Lundquist, chief executive officer of Denmark’s Export and Investment Fund, said: “In Denmark, we are particularly good at digitization and have a lot of companies working with digitalization of our society. In Denmark’s Export and Investment Fund we want to contribute to these companies’ growth journey in order to drive innovation and create new jobs all over Denmark. Therefore, we are very happy about this agreement with EIF under the InvestEU programme.”
EIF Chief Executive Marjut Falkstedt said: “We are very happy to kick-off our relationship with Denmark’s Export and Investment Fund, as our relationship with its predecessor Vaekstfonden was a longstanding and very fruitful one. This agreement, made possible by the InvestEU programme, will make financing more accessible for smaller companies in Denmark as they pursue their innovative ideas and navigate the digital transition. Public entities need to support the digitalisation of European businesses and we are glad to play our role.”
European Commissioner for the Economy Paolo Gentiloni said: “InvestEU is enabling small and medium-sized companies to contribute to digitalisation and innovation across Europe. We are delighted that, with this agreement, we will provide key support to Danish companies investing in innovation and digitalisation, thereby creating opportunities for businesses to grow and create jobs.”
Denmark’s Export and Investment Fund is the sovereign investment fund of Denmark, and the result of a merger of EKF Denmark’s Export Credit Agency, the Danish growth fund Vaekstfonden and the Danish Green Investment Fund. Through a single point of contact, Danish companies can now gain access to state-financed risk capital. The fund was recently one of the first financial institutions in Denmark to sign an agreement under the InvestEU programme.
Background information
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, 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 that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
Denmark’s Export and Investment Fund is a merger of three existing state funds — Vaekstfonden, EKF Denmark’s Export Credit Agency and the Danish Green Investment Fund. Together, they offer risk capital financing to entrepreneurs, small and medium companies and export companies.
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