The European Investment Fund ( EIF ) and Danish corporate bank kompasbank have signed portfolio guarantee agreements to provide at least EUR 175 million in loans to Danish SMEs. These guarantees from the EIF will allow kompasbank to offer Danish companies improved lending conditions, such as reduced interest rates and longer maturities.

The agreements are supported by the InvestEU programme, which aims to generate more than EUR 372 billion in additional investments between 2021 and 2027. The EIF guarantees will enable kompasbank to support Danish companies, particularly in areas related to skill development and climate change mitigation. This support is aimed at enhancing the availability of financing for small companies.

The three EIF guarantees will enable kompasbank to engage in riskier lending segments, including start-ups. With backing from the InvestEU programme, the guarantees will focus on skills and education-related investments, green and sustainable transformation of the Danish economy, and riskier investments for SMEs and start-ups. Background Information The European Investment Fund (EIF) is part of the European Investment Bank Group, focusing on supporting Europe's micro, small, and medium-sized businesses (SMEs) by facilitating access to finance.

EIF develops venture and growth capital, guarantees, and microfinance instruments targeting this market segment, supporting EU objectives related to innovation, research and development, entrepreneurship, growth, and employment. The InvestEU programme provides long-term funding by leveraging private and public funds to support a sustainable economy. It aims to generate investments in line with EU policy priorities, including the European Green Deal, digital transition, and SME support.

InvestEU consolidates EU financial instruments, making funding for investment projects simpler, more efficient, and flexible. The programme comprises the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners using an EU budget guarantee of €26.2 billion, mobilizing at least €372 billion in additional investment.

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