"The blending of the EIB loan with Luminor’s resources will pave the way for over €332 million in new financing with more favourable conditions to businesses across the Baltics," Luminor said.
The loan is intended to stimulate growth in the Baltic region, with a focus on supporting the green transition of the economy. The financing will be used for investment that will contribute to the reduction of overall greenhouse gas emissions, while helping the Baltic countries to meet the climate targets as reflected in their nation-wide strategies. Some 85% of the finance unlocked by the EIB is expected to benefit cohesion regions and help to reduce regional income disparities.
“The Baltic countries are dynamic and forward-looking, with green transition increasingly in the economic focus,” said EIB Vice-President Thomas Östros, responsible for the Bank’s operations in the region. “With that in mind, improving access to adequate financing for small businesses and mid-caps is instrumental in ensuring the financial viability of their projects, their growth and it ultimately supports employment and social cohesion in Estonia, Latvia and Lithuania.”
Palle Nordahl, Chief Financial Officer at Luminor said: “We also welcome the EIB’s commitment to financing investments that promote the transition to a greener economy, while stimulating economic growth across our home nations.”
The EIB is the long-term lending institution of the European Union owned by the EU Member States. The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to devote more than half of EIB finance to climate action and environmental sustainability by 2025.
Luminor is the the third-largest provider of financial services in the Baltic states.