ANNOUNCEMENT 07 May 2021

In May 2021, the European Investment Bank (EIB) signed a loan guarantee agreement with OP for disbursal to Finnish companies in making new investments and recovering from the COVID-19 pandemic. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

EGF - OP CORPORATE BANK MID-CAP RS INSTRUMENT. EIB. Available at: https://www.eib.org/en/projects/loans/all/20200677

Finland: EIB and OP bring €300 million of new financing to mid-sized Finnish companies under European Guarantee Fund. EIB. Available at: https://www.eib.org/en/press/all/2021-155-eib-and-op-bring-eur300-million-of-new-financing-to-mid-sized-finnish-companies-under-european-guarantee-fund

Inception date: 07 May 2021 | Removal date: open ended

Loan guarantee

On 7 May 2021, the European Investment Bank (EIB) signed a loan agreement with Finnish OP Corporate Bank to the value of EUR 195 million (approx. USD 237 million). The guarantee agreement is meant to allow OP to bring new financing to mid-size Finnish companies. The aim is to support companies in making new investments and recovering from the Covid-19 pandemic.

The EIB’s guarantee will cover €195 million (65%) of the 300-million-euro financing targeted at mid-size companies. The guarantee forms part of the European Guarantee Fund's (EGF) guarantee programme, and the agreement will be valid until the end of 2021.

The Pan-European Guarantee Fund (EGF) is made up of EUR 25 billion in guarantees by EU Member States, which are set to trigger additional investments of up to EUR 200 billion for European companies. The Fund was established in spring 2020 on the initiative of the EIB Group, which is also responsible for its management.

Commenting on the guarantee, EIB Vice-President Thomas Östros said: "The pandemic has put all sectors under severe stress, and Finnish businesses are no exception. The European Guarantee Fund works as a protection shield for companies, to help them finance their way out of the crisis under more favourable conditions. We are glad that we can build on the EIB Group’s longstanding relationship with OP to make sure that Finnish companies can benefit from this pan-European measure."

OP Corporate Bank plc is part of OP Financial Group. OP Corporate Bank is together with OP Mortgage Bank responsible for OP's funding in money and capital markets. OP Corporate Bank acts as OP Financial Group's central bank.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A