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EUR 100 million funding for Finnish companies

The financing programme seeks to remove financial bottlenecks faced by growth companies and is the first of its kind to be adopted in the Nordics.Shutterstock

A 100 million-euro financing programme to support the growth of Finnish companies has been agreed upon by the European Investment Bank (EIB) and the investment company Tesi (Finnish Industry Investment).

The financing will be targeted to growth-oriented SMEs and innovative mid-cap companies over the next eight years. The capital boosts of 15–30 million euros per company are to be managed by Tesi and will be equally split between the EIB and Tesi.

“I think this operation is one to be proud of,” states EIB vice-president Alexander Stubb (right), pictured with Tesi CEO Jan Sasse. Image: Tesi

In addition, each financing round must involve at least the same amount in private capital. This may be used to boost growth, internationalisation and product development. These private sector co-investments will bring another 100 million euros, raising the total of new investments benefiting SMEs and mid-caps to 200 million euros.

“The new financial model enables larger financing rounds than before and diversifies the financing structures of growth-oriented companies,” says Tesi CEO Jan Sasse. “It boosts the growth and internationalisation of companies and improves their ability to make significant investments.”

The operation is guaranteed under the European Fund for Strategic Investments (EFSI) and is part of the Investment Plan for Europe of the Juncker Commission.

Published on 20.08.2018