BAKU, Azerbaijan, December 13. The European Investment Bank (EIB) and Sydbank have announced Denmark's first linked risk-sharing agreement, aimed at increasing access to finance for mid-sized Danish companies, Trend reports.
Under the deal, Sydbank will offer up to 400 million euros in new loans to Danish Mid-Caps, backed by a 200 million euros uncapped guarantee from the EIB.
This partnership allows Sydbank to cover credit losses, encouraging greater risk appetite and enabling improved lending conditions. The 50% guarantee rate on individual loans ensures that Sydbank can establish a 400 million euro loan portfolio, with all loan decisions fully delegated to the bank.
“Partnering with the EIB helps us enhance our support for Danish businesses, especially Mid-Cap companies, which are vital to the country’s economic growth,” said Stig Westergaard, Deputy Group Chief Executive of Sydbank.
EIB Vice-President Ioannis Tsakiris emphasized the significance of this initiative: “Mid-sized companies are essential to Denmark’s economy, and this agreement helps provide them with the financing they need during challenging times.”
The program is designed to assist companies with 250 to 3,000 employees, as well as smaller firms meeting specific financial thresholds. It addresses the challenges posed by inflation, energy uncertainty, and geopolitical instability, providing an additional source of funding to help Danish businesses grow and innovate.