Danish businesses will be able to access new lending after the European Investment Bank agreed to provide up to €80 million (about 598 million Danish kroner) to Ringkjøbing Landbobank.
Ringkjøbing Landbobank will channel the money to small and medium-sized enterprises (SMEs) and mid-sized companies known as “mid-caps”, the EIB informed in a release on Friday.
It noted that SMEs are businesses with fewer than 250 employees.
At least 70% of the financing will go to SMEs, while mid-caps can receive up to 30%.
A minimum of 15% is earmarked for projects linked to climate action and environmental sustainability.
The EIB said the funding is expected to be used by companies across sectors including construction, transport, manufacturing, information technology and agriculture.
It added that eligible firms are expected to benefit from lower borrowing costs and access to longer-term finance.
Loans expected to support investments and jobs
More than 100 loans to Danish SMEs and mid-caps are projected under the operation, which is expected to mobilise €224 million in investment, the EIB said.
The financing is also expected to sustain around 5,000 full-time jobs among Danish SMEs and mid-caps.
“We are helping small and medium-sized companies across Denmark secure better financing conditions for investments that support growth, job creation and climate action,” Ioannis Tsakiris, an EIB vice-president, said in the statement.
Ringkjøbing Landbobank chief executive John Fisker stated that the bank expects to support financing for SMEs, including companies linked to “more sustainable production and consumption”, and to fund investments connected to the green transition.
The EIB and Ringkjøbing Landbobank have worked together since 2002, and the new loan follows a previous agreement signed in 2023.
