Nordic businesses to get green-financing boost as EIF teams up with regional lender Nefco

• EIF commits €70 million to Nordic financial institution Nefco for financing green growth by businesses.
• Pledge aims to accelerate climate action and environmental sustainability by companies in Denmark, Finland, Iceland, Norway and Sweden.
• Backed by InvestEU programme, first-of-its-kind accord highlights EIF commitment to sustainable economic growth.

Helsinki/Luxembourg, 26 March 2025: The European Investment Fund (EIF) is committing €70 million to the Nordic Environment Finance Corporation (Nefco) to expand green financing for a range of companies in the Nordics. The EIF guarantee will enable Helsinki-based Nefco to offer loans on favourable terms to small and medium-sized enterprises (SMEs) as well as Mid-Caps in Denmark, Finland, Iceland, Norway and Sweden.

The Nefco financing, which will include reduced interest rates, will focus on Nordic SMEs and Mid-Caps promoting climate action and environmental sustainability. The backing of the EIF, which is part of the European Investment Bank (EIB) Group, takes the form of a guarantee under the InvestEU programme.

Nefco is the first international financial institution, or IFI, to enter into such an agreement with the EIF.

“This collaboration is a testament to our commitment to fostering sustainable and competitive growth in the Nordic region,” said EIB Vice-President Thomas Östros. “By providing this guarantee, we are enabling SMEs to access the financing they need to innovate and thrive.”

The EIF support will cover as much as €100 million in Nefco financing with a guarantee rate of up to 70%. The funding will target technological initiatives in areas including clean power, energy savings and the circular economy, highlighting a commitment by the EIF and Nefco to accelerate Europe’s shift to a low-carbon economy.  

“Nefco finances the international scale-up of Nordic green solutions with potential to create a positive global impact,” says Trond Moe, Managing Director of Nefco. “This guarantee by EIF helps us to bridge the financing gap and empower SMEs to scale innovations to build a more resilient, sustainable economy.”

Background information

About the EIF:

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. 

About InvestEU programme:

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. 

About Nefco:

Nefco, the Nordic Green Bank, finances the initial scale-up of Nordic green solutions on global markets. Founded in 1990 by the five Nordic countries, Nefco serves the interests of its owners, Denmark, Finland, Iceland, Norway and Sweden. Nefco’s task is to work with concrete actions to accelerate the green transition. To date, more than 650 Nordic growth companies have received financing through Nefco. Nefco evaluates its impact against the EU Taxonomy, the UN Sustainable Development Goals and its own environmental and sustainability criteria.

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org  — press@eib.org

Nefco

Anni Rein

M. +358 10 6180 852, e-mail: anni.rein@nefco.int
Website: www.nefco.int