We are speeding up the green transition of SMEs and housing companies through the EIF guarantee facility

OP and the European Investment Fund (EIF) have signed an agreement on new risk sharing guarantee facilities (RSGF) Guarantee facility solutions for various needs will be available in OP cooperative banks during the beginning of spring 2023.

Next spring, we are offering the risk sharing guarantee facility by the EIF for SMEs and housing companies. The aim is to help SMEs obtain financing for investments that accelerate the green transition and enable them to implement projects with lower collateral requirements.

The new risk guarantee facility will provide around 200 million euros of new funding to the market.

 

In businesses, industries and real estate, the green transition can mean investments in clean energy production and circular economy solutions, as well as the development and adoption of new services and methods.

- Key challenges in the future include supporting the green transition of businesses and the creation of economic growth and new jobs. The new guarantee facilities support our sustainability goals, one of which is reforming our loan portfolio to be as green as possible, says Heikki Peltola, Head of SME Retail Banking. 

Loan guarantee facilitates access to financing

The EIF guarantee facility reduces the need for other collateral and allows financing to be issued at a lower price than normal. Eligibility for the EIF guarantee facility are assessed on a case-by-case basis when processing the loan application. The new risk sharing guarantee facility is suitable for various types of needs:

Sustainable solutions of SMEs  

  • Ideal for SMEs pursuing goals such as energy efficiency, the use of renewable energy sources and environmentally sustainable materials, circular economy or low emissions.  

Sustainable solutions of housing companies  

  • Ideal for housing companies pursuing goals such as energy efficiency, the use of renewable energy sources, or low emissions.  

SMEs’ product and service development and digitalisation  

  • Suitable for innovative growing companies engaged in digitalising their operations and making significant investments in product, service and process development.