Financial institutions
Small and medium-sized enterprises (SMEs) and small mid-caps are an integral part of the economy. To reach out to smaller businesses, NIB can either lend direct to customers or conclude loan programmes for on-lending through financial institutions, such as commercial banks, leasing companies and other financial organisations. We can also engage in risk-sharing facilities with local financial institutions as well as invest in MREL-eligible bonds.
Outstanding financing to the SME sector (and small mid-cap corporates) at the end of 2025 was EUR 1,386 million. This includes on-lending, MREL and direct loans.
On-lending
Through financial intermediaries, we finance SMEs and small mid-caps in our member countries. Our loans can be used to finance both tangible capital as well as related working capital with tenors of at least one year.
By on-lending, we can also finance small-scale environmental and energy efficiency projects. Projects and investments financed through a financial institution shall also fulfill NIB’s mission to strengthen competitiveness, sustainability and resilience.
MREL lending
We invest in MREL (minimum requirement for own funds and eligible liabilities) eligible bonds offered by Nordic-Baltic financial institutions to further support them in SME lending. Such investments support the banks’ regulatory compliance, funding base diversification and the increase of their loss-absorption capacity.
