MFB Hungarian Development Bank joins EIF-led fund for central and eastern European businesses

• Hungarian national promotional institution MFB pledges €20 million to EIF-led fund for central and eastern European businesses
• MFB becomes third contributor to Three Seas Initiative Innovation Fund seeking to mobilise €1 billion for investments in private equity, venture capital and private credit funds and support growth-stage companies 
• EIF to match MFB contribution

Luxembourg/Budapest, 19 November 2024: Hungarian national promotional institution MFB Hungarian Development Bank (MFB) pledged €20 million to the Three Seas Initiative (3SI) Innovation Fund supporting growth-stage companies in central and eastern Europe. MFB joins Polish counterpart BGK and National Development Investments (NRI), a subsidiary of the Czech development bank (NRB), in backing the 3SI Innovation Fund, which is led by the European Investment Fund (EIF).

The MFB commitment matches the BGK and NRI pledges, increasing the 3SI Innovation Fund’s size from national contributions to €60 million. The EIF, which is part of the European Investment Bank (EIB) Group, plans to match all contributions to the 3SI Innovation Fund. The initiative supports investments in businesses past the early phase of development that are based in countries between the Baltic, Black and Adriatic seas.

“The expansion of the 3SI Innovation Fund with the MFB’s contribution is excellent news” said EIF Chief Executive Marjut Falkstedt. “We are pooling national resources across central and eastern Europe to drive competitiveness, deepen the EU internal market and accelerate climate action. This initiative is an important boost for innovation and new jobs in these countries.”

The 3SI Innovation Fund is a fund of funds targeting the participation of up to nine countries in the region – Hungary, the Czech Republic and Poland included – and a size of €180 million for investments in private equity, venture capital and private credit funds. With further investment of EIF and private investors the overall goal is to mobilise some €1 billion of new financing and bolster business growth in central and eastern Europe, where such funding has been relatively scarce and where meeting market demand is important for sustainable development and maintaining global competitiveness.

EU economic integration and global competitiveness

Funds of funds targeting innovation and growth while heeding the need for climate action play a crucial role in fostering sustainable economic development. They channel capital into high-potential sectors that drive technological advancements and environmental sustainability. By pooling resources and investing in a diverse range of underlying funds, funds of funds reduce risk for investors while amplifying the impact across multiple innovative ventures, including clean energy, green and cutting-edge technologies.

Such funds can help bridge financing gaps for companies developing climate-friendly solutions, which are essential for meeting global environmental targets. In turn, these investments stimulate job creation, increase productivity, and position economies to be more resilient and competitive in a rapidly evolving global market focused on sustainability.

Background information

The European Investment Fund (EIF):

EIF is part of the European Investment Bank Group (EIB) Group celebrating its 30^th anniversary this year. 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, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

MFB Hungarian Development Bank (MFB):

MFB is Hungary’s national promotional institution owned by the Hungarian State. The Bank has been operating as a financial institution with a focus on investments since 1993. As a development bank, MFB’s priority is to provide funding opportunities in areas where commercial banks cannot provide loans efficiently. Its core activities include the provision of preferential loans for domestic businesses and private individuals, the fulfilment of development requirements and fund management tasks in relation to the country’s European Union membership.

Press contacts:

European Investment Bank Group

Tibor Jóna, t.jona@eib.org, tel.: + 352437984105 / mobil: +352 691287052
Website: www.eib.org/press - Press Office: press@eib.org

MFB Hungarian Development Bank Plc.:

Marketing and Communications Department

Web: www.mfb.hu/en

E-mail: kommunikacio@mfb.hu