Green Loan and EIF Guarantee – The Forgotten Financing Solutions for Energy Solutions

In energy procurement by companies and housing companies, the arrangement of financing often plays a major role in both the implementation and profitability of the project. Let’s now take a look at two almost forgotten financing instruments that deserve more attention. Namely, green loans and EIF guarantees.

What is a green loan?

• A green loan is a loan aimed at SMEs and housing companies, which supports investments that reduce environmental impact.
• A green loan is a more affordable loan than a regular loan.
• Many banks grant green loans. Ask your bank for more information about green loans.
• You can get a green loan if your project meets the criteria for green financing.
• Your project can be profiled as responsible, and you can utilize it in stakeholder communication and in building your reputation and employer image. A green housing company loan is a responsible choice for your housing company.
• Banks may request annual information about your investment, such as electricity consumption, so that we can assess the environmental impact achieved.

What kind of projects can you get a green loan for?

A green loan can be obtained for renovation and refurbishment projects that improve energy efficiency, energy-efficient new construction, certified buildings, the use of renewable energy sources, the construction of low-emission transport infrastructure (for example, the installation of electric charging stations and related electrical work), and organic farming.

In other words, you can get a green loan for practically all of the solutions we offer, as long as the loan criteria are met.

What is the EIR guarantee?

The EIF guarantee is a risk-sharing guarantee from the European Investment Fund (EIF) that some banks offer to SMEs and housing companies. It makes it easier to obtain financing from the bank for projects that promote renewal and growth.

• The EIF guarantee is granted based on the purpose of the investment or the company’s green business model.
• Responsible investments by SMEs and housing companies that accelerate the green transition.
• The EIF guarantee reduces the need for other collateral, and it covers a maximum of 80 percent of the loan collateral.
• The EIR guarantee reduces the bank’s risk, which allows it to grant a loan at a more favorable price.
• Banks assess the conditions for the EIF guarantee when applying for financing

Leasing also available

If a company or housing association does not consider a loan to be the right financing instrument for them, we also offer leasing financing for up to 120 months. In this case, the investment is off-balance sheet and a fully tax-deductible expense.