Übersicht
The project will finance capital expenditure investments for the production facility of sustainable wood-foam sound insulation material in Finland. Additionally, it will finance further research and development activities and other expenses to support the growth of the company.
In line with the eligibility criteria set out in Annex I-A of the InvestEU Agreement, particularly in relation to eligibility as per article 8.2, the operation falls under the thematic product and its main objective concerns the building of a larger facility.
The project is in line with the InvestEU objective of Sustainable Bioeconomy. It aligns with the EU's bioeconomy priorities by fostering re-use and recycling of natural materials and enabling sustainable value chains.
The project addresses a structural market failure in the provision of risk capital to innovative SMEs developing sustainable materials. These companies face significant difficulties accessing adequate long-term financing, particularly in cohesion regions, due to the higher perceived risks associated with scaling up novel industrial technologies and the lack of comparable commercial benchmarks. There is also a gap in private sector investment in bio-based and recyclable material technologies, despite their environmental benefits, due to long development cycles, high capital intensity, and uncertain early-stage returns. The project is located in a transition region in rural area with lower GDP per capita and limited industrial diversification, further constraining the availability of private investment.
The product developed by the company is designed to reduce greenhouse gas emissions and environmental impacts throughout their life cycle. In addition to environmental benefits, the project will generate positive knowledge spillovers through R&D on energy efficiency, dielectric drying, and the use of industrial side streams. It will create skilled employment opportunities in a transition region.
The EIB's role as a patient financier and anchor investor is expected to catalyse additional funding from private and public sources, while its technical due diligence supports the promoter in refining the project design and implementation strategy. The EIB's support under InvestEU enables the Bank to take on the higher technology, market, and scale-up risks inherent to the operation, while ensuring alignment with EU climate and cohesion policy goals. Without EIB financing, the project would likely be delayed, scaled down, or proceed under less optimal financing conditions, limiting its market impact and environmental benefits.
The project would not have been carried out to the same extent, within the same timeframe, or under comparable financial conditions without the support of the EIB under the InvestEU programme. The Borrower would not have constructed its full scale facility from the start without the EIB Venture Debt loan, and EIB can thus be considered a cornerstone investor from this point of view. The Venture Debt loan was provided with long maturities and tailored and flexible terms (including exit remuneration), aligning the interests and making it compatible and attractive to other sources of financing.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.