EGF - FINNVERA LRS INSTRUMENT

Promoteur – Intermédiaire Financier

FINNVERA OYJ

Lieu

• Finlande

Description

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.

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.

Objectifs

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

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 488 million

Coût total (montant approximatif)

EUR 1591 million

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 1/04/2021