COSME EFSI deal in Denmark: EIF and the Danish Growth Fund (Vækstfonden) sign an agreement to finance agricultural businesses

The European Investment Fund (EIF) and The Danish Growth Fund (Vækstfonden) have signed a COSME agreement in Denmark, benefiting from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.

The COSME guarantee agreement will allow Vækstfonden to support DKK 180,000,000 (ca. EUR 24.2m) of loans to agricultural Small and Medium-sized Enterprises (SMEs) in Denmark over the next three years. The loans will be provided thanks to a guarantee from EIF under the COSME programme with financial backing from the European Commission. The agreement will make it possible for Vækstfonden to support additional financing at favourable conditions to around 90 young farmers wishing to acquire a farm.

Commenting on the signature, EIF Chief Executive, Pier Luigi Gilibert said: “EIF is pleased to be signing a guarantee agreement with Vækstfonden for the benefit of agricultural businesses in Denmark. This agricultural COSME EFSI deal with the Danish Growth Fund, in addition to the transaction signed recently with Vækstfonden, will mean that more than 400 Danish SMEs can now benefit from over EUR 100 million of EU support”.

EU Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "Denmark xxxxxxxxxxxxxxxxxxxxxxxxxx".

The Danish Minister of Business and Growth, Troels Lund Poulsen, added: “With xxxxxxx.”

This deal reflects the EIB Group’s commitment to respond swiftly to calls from Member States, the European Commission and the European Parliament for a rapid launch of concrete initiatives under EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About The Danish Growth Fund (Vækstfonden)

The Danish Growth Fund is a state investment fund that contributes to the creation of new companies by providing capital and expertise. Since 1992, The Danish Growth Fund has together with private investors co-financed growth in more than 5,000 Danish companies with a total commitment of more than DKK 12 billion. The Danish Growth Fund invests equity and provides loans and guarantees for small as well as medium-sized enterprises in collaboration with private partners and Danish financial institutions. See more here http://www.vf.dk/saadan-goer-vi/vaekstkaution.aspx.

About COSME

COSME is the EU programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs) running from 2014 to 2020 with a total budget of EUR 2.3 billion. At least 60% of the programme will be devoted to easing access to finance for SMEs in Europe, with two financial instruments. The COSME Loan Guarantee Facility supports guarantees and counter-guarantees to financial institutions to help them provide more loans and lease finance to SMEs. This facility also includes securitisation of SME debt finance portfolios. The COSME programme also invests through the COSME Equity Facility for Growth in equity funds that provide risk capital to SMEs mainly in the expansion and growth stages. The COSME programme builds on the success of the Competitiveness and Innovation Framework Programme (CIP) (2007-2013) which helped to mobilise almost EUR 21 billion of loans and EUR 3 billion of venture capital to over 383,000 SMEs in Europe.

Businesses can contact selected financial institutions in their country to access EU financing: http://www.access2finance.eu

About the Investment Plan for Europe

Press contacts:

EIF: David Yormesor, Tel.: +352 42 66 88 346, e-mail: d.yormesor@eif.org

The Danish Ministry of Business and Growth: Kim Bové: Tel. 91 33 70 15, kkb@evm.dk

The Danish Growth Fund (Vækstfonden): Peter Bruun Tel. +45 40 81 35 46, e-mail: pbr@vf.dk