Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics
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.
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Keywords: Europe, Sweden, Finland, Banking, SME, Sustainable Finance, ESG, Lending, Credit Risk, Nordea Bank, EIB Group, EC
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