14 Mar 2019
EUR 102.26 million
Financial institutions and SMEs
NIB and Sydbank A/S have signed a cooperation agreement to jointly finance small and medium-sized enterprises (SMEs) and small mid-cap companies in Denmark.
NIB has partnered up with Sydbank and allocated DKK 150 million (EUR 20 million) for onlending to SMEs and mid-cap companies in Denmark. Sydbank will be selecting eligible borrowers and match every loan paid out under the NIB facility in equal amounts and on the same terms.
This new form of cooperation between NIB and Sydbank enables parallel lending and will result in risk sharing by the two banks. The maturity of each individual loan under the facility is a maximum of five to ten years.
Suitable projects to be financed include investments in new machinery and equipment, IT, and R&D programmes. The projects are to be in alignment with NIB’s conditions for SMEs and small mid-caps. Sydbank will perform the credit analysis and risk rating applying the criteria agreed with NIB.
“We are pleased that we can broaden our portfolio with a relevant and attractive offering for our corporate customers. We are already in close cooperation with the important SME sector in Denmark, and now we will be able to support the growth ambitions of even more businesses, while keeping up the credit risk”, says Jan Svarre, Deputy CEO of Sydbank.
“SMEs and mid-caps are key drivers for growth and job creation in the Nordic–Baltic region. The cooperation with Sydbank will allow NIB to better serve the SME corporate market in Denmark. Together, we hope to get many investment projects underway”, says Henrik Normann, NIB President & CEO.
Sydbank is headquartered in Aabenraa, southern Jutland, and operates 62 branches throughout Denmark. The bank currently has a market share of approximately 13% in the Danish SME sector.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Ms Sari Cabell, Senior Manager, Origination, at +358 10 618 0519,
Mr Dimitrijs Alehins, Senior Communications Specialist, at +358 10 618 0296,
Dan Prangsgaard, Head of Communications, +45 2154 1874,