The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics. The EIB Group (comprising EIB and the European Investment Fund) will guarantee a portfolio of Nordea lending up to EUR 1.8 billion, freeing up capital for new loans for sustainable initiatives of Swedish and Finnish companies. As part of the agreement with the EIB Group, which is owned by the EU member states, Nordea Bank has committed to extend funding at attractive terms to eligible green projects. This gives Nordea Bank the opportunity to provide small and medium-size (SME) customers in Finland and Sweden lower than usual rates to fund investments that meet well-defined sustainability criteria.
The green loans will be offered to eligible SME businesses and include offering reduced margins for eligible projects. Nordea Bank has committed to reach net-zero emissions by 2050 and to reduce CO2 emissions from its lending portfolio by 40%-50% by 2030. During the third quarter of 2021, Nordea will be ready to offer its customers advice about the new lending offering and will start issuing the new sustainable, guaranteed loans. In March 2021, Nordea had signed an agreement with the EIF to support SMEs in Sweden, Finland, and Denmark with attractive lending, to manage companies facing temporary COVID-19 circumstances and/or to accelerate their growth. This initiative is backed by the European Union's Investment Plan for Europe, which is aimed at encouraging sustainable, long-term economic growth in Europe.
Keywords: Europe, Sweden, Finland, Banking, SME, Sustainable Finance, ESG, Lending, Credit Risk, Nordea Bank, EIB Group, EC
Previous ArticleEBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.