17 Dec 2018
EUR 10 million
Infrastructure, transportation and telecom
|Date of loan:||12 Dec 2018|
|Amount in EUR:||EUR 20 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
Funding for a EUR 20 million loan programme has been provided to Liedon Säästöpankki for financing small and medium-sized enterprises (SMEs) and environmental projects in the south-western region of Finland. In 2013, NIB and Liedon Säästöpankki signed one loan programme for EUR 10 million, which was successfully allocated to 141 SMEs.
Again, the selected eligible SME projects must involve investments in either machinery, equipment, production or service facilities. Investments in information and communications technology or software, and investments in research and development, as well as working capital, are also qualified. In addition, environmental projects may be identified, e.g. small-scale energy efficiency projects.
Liedon Säästöpankki was established in 1895 and is the second largest bank in the Finnish Savings Banks Group. The bank's balance sheet is over 1 billion euros. Liedon Säästöpankki has 4,700 corporate and institutional customers and a total of 52,000 customers.
The loan programme improves access to financing for SMEs, which may lead to growth in their productivity. This can result in regional benefits in terms of competitiveness and job creation.
Projects considered to be financed by Liedon Säästöpankki under this loan programme must fulfil NIB’s eligibility criteria for financial intermediary lending. In the previous loan programme, the majority of the allocations fulfilled the productivity mandate whereas a smaller portion fulfilled the environmental mandate, and it is quite likely that the new allocations will be very similar. The environmental allocations included, among others, installation of geothermal heat and energy efficiency projects.
Liedon Säästöpankki is expected to ensure that all necessary project-related permits are in place prior to loan allocations. Liedon Säästöpankki will assess the environmental and social aspects of its on-lending business in accordance with NIB’s Sustainability Policy and Guidelines.