The European Investment Bank (EIB) will provide EUR 50 million loan to AS Hansapank, headquartered in Tallinn, to support investments undertaken by mid-cap enterprises (companies with more than 250 and fewer than 3 000 employees) throughout Estonia, as well as in Latvia and Lithuania.
AS Hansapank, an established partner of the EIB in Estonia, will on-lend the EIB funds to mid-cap corporates implementing investments in sectors such as manufacturing, services, energy, environment, research and development, as well as innovation dissemination.
This mid-cap facility will provide AS Hansapank with further access to LMT funds enabling the bank to increase its term lending and diversify its funding sources.
The finance contract was signed today in Tallinn by Mr Philippe Maystadt, President of the EIB, who declared: “This new EIB loan with Hansapank marks a welcome continuation of the well-established co-operation between our two financial institutions”.
Note for the editor:
The European Investment Bank Group, the banking group promoting European objectives and financing European projects, provides capital investment aimed at modernising the economies of the Member States and of the countries close to the Union.
In 2007, the European Investment Bank lent a total of EUR 47.8 billion for projects promoting the European Union’s policy objectives. Finance for the EU-27 Member States represented 87% of its activities and amounted to EUR 41.4 billion. To fund its activities, the EIB raised an aggregate amount of EUR 55 billion on the international capital markets through 236 bond issues in 23 currencies. Owned by the Member States, the EIB (with its AAA rating) is the largest supranational issuer.
In the five-year period 2003-2007, the European Investment Bank provided a total of EUR 150 million for stimulating employment and growth in Estonia. 47% of the EIB’s lending in the country was for small and medium-sized enterprises (SMEs) and mid-cap enterprises (fewer than 3000 employees). The EIB funding was channelled through its established financial partners (HANSAPANK and NORDEA BANK). In the energy sector, which represented 53% of the EIB’s total financing in the period, funds have been directed towards securing optimal electricity transmission and distribution. The renovation and extension of electricity transmission and distribution facilities located throughout Estonia have been undertaken by Eesti Energia AS.
In 2007, the EIB opened a regional office in Helsinki, located at the headquarters of the Nordic Investment Bank (NIB), with the aim of enhancing the Bank’s presence in the Baltic Sea region.