EIB signs €115 million loan to Luminor to support businesses across the Baltics
The funding aims to improve access to finance in the Baltic region, with a focus on supporting the green transition.
The agreement will facilitate over €332 million in new financing for businesses.
The additional lending is aimed at small to medium-sized companies and mid-caps.
The European Investment Bank (EIB) and Luminor Bank AS today signed a €115 million agreement to facilitate additional lending to small to medium-sized companies and mid-caps in Estonia, Latvia and Lithuania. The blending of the EIB loan with Luminor’s resources will pave the way for over €332 million in new financing with more favourable conditions for businesses across the Baltics.
The loan is intended to stimulate growth in the Baltic region, with a focus on supporting the green transition of the economy. The financing will be used for investment that will contribute to the reduction of overall greenhouse gas emissions, while helping the Baltic countries to meet the climate targets in their nationwide strategies. Some 85% of the finance unlocked by the EIB is expected to benefit cohesion regions and thus help to reduce regional income disparities.
“The Baltic countries are dynamic and forward-looking, with the green transition increasingly in economic focus,” said EIB Vice-President Thomas Östros, responsible for the Bank’s operations in the region. “With that in mind, improving access to adequate financing for small businesses and mid-caps is instrumental in ensuring the financial viability of their projects and growth, and it ultimately supports employment and social cohesion in Estonia, Latvia and Lithuania.”
“Luminor’s mission is to improve the financial health of our customers and our home countries and, while the economic outlook across Europe remains uncertain, this initiative will further strengthen our continued readiness to support SME businesses as lending demand resumes,” said Palle Nordahl, Chief Financial Officer at Luminor. “We also welcome the EIB’s commitment to financing investments that promote the transition to a greener economy, while stimulating economic growth across our home nations.”
EIB opens regional office to strengthen presence in the Baltics
– European Investment Bank Group opens regional representation office for the Baltics in Vilnius, Lithuania
– Goal is to support businesses and strengthen relations with the public and private sectors, as well as to enhance EIB Group’s outreach in the three Baltic States
– Marco Francini appointed as head of office
The European Investment Bank (EIB) Group has today officially inaugurated its regional representative office for the Baltic Region in Vilnius, Lithuania. At the inauguration ceremony in the presence of the Lithuanian Finance Minister Vilius Šapoka, the EIB’s President Hoyer and Vice-President Stubb unveiled of a commemorative plaque, officially kicking off the permanent representation in the region. The EIB Group representation to the Baltic States will be headed by Marco Francini.
EIB President Werner Hoyer remarked: “The Baltic States may be small in terms of population, but their importance for European unity is big. Moreover, their standing and weight in terms of business, technology and innovation is growing stronger than ever. We are delighted to open a regional representation in Vilnius, a clear signal of the EIB Group’s intention and willingness to support Estonia, Latvia and Lithuania in the energy transition, as well as to sustain their many innovative businesses, all to the benefit of the more than 6 million people who inhabit the region.”
Minister of Finance of the Republic of Lithuania Vilius Šapoka added: “This is a very significant step for all the Baltic states towards closer cooperation with the EIB. I am delighted that Lithuania will have more financing alternatives in strategic areas that will also contribute to the economic growth of the country.
Lithuania’s cooperation with the EIB Group is presented as good practice within the European Union and beyond, so we hope that through enhanced cooperation we will jointly develop innovative financial instruments in our country. At the same time, we will definitely implement many ambitious projects in green finance, FinTech and other areas”.
The inauguration of the regional EIB Group office in Vilnius is part of the EIB’s policy of enhancing its presence in all EU Member States. A presence on the ground will ensure market proximity, an increased operational delivery capability for the EIB and closer institutional ties with the national authorities. It will improve project identification and screening, facilitate appraisal of new operations and help to develop financing opportunities with the European Investment Fund (EIF).