Swedbank and the European Investment Fund Signed an InvestEU Sustainability Guarantee Agreement
Swedbank and the European Investment Fund (EIF) have signed an InvestEU Sustainability Guarantee agreement to support the transition of companies and housing associations operating in the Baltic states to environmentally friendly and sustainable solutions. The agreement provides Estonian, Latvian, and Lithuanian companies and housing associations with access to financing of up to 300 million euros.
The Sustainability Guarantee is one of six InvestEU portfolio guarantee products designed to support sustainable transformation of small and medium-sized enterprises and housing associations across the European Union, which helps achieve the EU's goal of gradually reducing greenhouse gas emissions by 2050 and transitioning to a carbon-neutral economy.
Swedbank already has a successful cooperation with the EIF. During 2016–2022, Swedbank issued bank loans and leasing services totaling over 630 million euros under two previous EIF programs – the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) program and the European Employment and Social Innovation (EaSI) program. Additionally, Swedbank has issued an additional 90 million euros in financing under the InvestEU program launched in July 2024. As a result, Swedbank's Baltic customers have already been financed to the extent of 720 million euros through EIF guarantees.
The signed agreement further strengthens cooperation between the EIF and Swedbank and helps companies with up to 500 employees in Estonia, Latvia, and Lithuania, as well as housing associations in Estonia and Latvia, improve energy efficiency. Specifically, through the InvestEU Sustainability Guarantee, local companies can invest even more in energy efficiency. By supporting companies in reducing emissions and improving energy use, we promote innovation and competitiveness throughout the region.
"We believe that the cooperation we have established provides an excellent opportunity to contribute to the sustainable development of our companies and communities through environmentally friendly investments. We stand by our clients and help them take steps toward a better future," said Anu Liblik, Head of Swedbank's Corporate Banking Division.
Financing can be used for investment loans tailored to the needs of clients in Estonia, Latvia, and Lithuania – the InvestEU Sustainability Guarantee opens financing to a wider range of clients, making financing for sustainable solutions even more accessible.
