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Signature(s)

Amount
€ 487,500,000
Countries
Sector(s)
Finland : € 487,500,000
Credit lines : € 487,500,000
Signature date(s)
1/04/2021 : € 487,500,000
Link to source

Summary sheet

Release date
21 March 2022
Status
Reference
Signed | 01/04/2021
20200795
Project name
Promoter - financial intermediary
EGF - FINNVERA LRS INSTRUMENT
FINNVERA OYJ
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 488 million
EUR 1591 million
Location
Sector(s)
Description
Objectives

Linked risk-sharing instrument under the European Guarantee Fund (EGF) to improve access to finance for mid-caps and large corporates in Finland and possibly in other EGF participating member states. Moreover, Finnvera will build a complementary portfolio, matching the size of the EGF guarantee, to improve the access to finance for small and medium-sized enterprises (SMEs). Namely, the objective is to support companies' access to liquidity and to improve their resilience to temporary demand and liquidity suppression, brought about by the COVID-19 pandemic, as well as support investment, and thereby also foster economic recovery.

Risk-sharing instrument under EGF to improve financing conditions of mid-caps and large corporates in Finland.

Additionality and Impact

This linked risk-sharing instrument under the Pan-European Guarantee Fund (EGF) is designed to address liquidity and long-term investment needs of mid-caps and large corporates affected by the COVID19 pandemic in Finland. The operation addresses the underlying market failure in access to finance faced by these companies due to information asymmetries, which has been further exacerbated by the pandemic. The project will be implemented by a sound intermediary, Finnvera, which has in-depth knowledge in the sector and a solid track record with implementing EIB Group guarantee and funding products. The EIB's contribution to the project is notable. First of all, the financing type is innovative as the delinked risk-sharing instrument does not yet exist on the target market for mid-caps and large corporates. Technical advice is provided to Finnvera in this regard. EIB participation sends a strong signal to the markets that might help crowd in private sector financial intermediaries. Overall, the project can contribute to the development of the Finnish financial market and positively stimulate economic recovery.

Environmental aspects
Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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