Nefco – the Nordic Green Bank finances small and medium-sized companies whose solutions have a positive environmental or climate impact. Its portfolio includes many Finnish growth companies.
The investment and financing gap of the green transition in Finland is at minimum over EUR 100 billion during the years 2020–2050. According to the report published by the working group on the green transition finance, the majority of investments must be directed to the energy sector, reducing emissions from buildings and traffic, and reducing industrial process emissions.
Nefco – the Nordic Green Bank responds to this need by financing the initial scale up of Nordic green solutions in the global market. The Nordic-owned international financial institution is tasked to accelerate the green transition. Nefco complements and helps mobilise financing from commercial banks and other private investors to bridge the financing gap of growth companies. The difference to commercial banks is that Nefco offers exclusively green financing.
”At Nefco, I work with SMEs that are at the forefront of the green transition, so I am familiar with the practical challenges of growth companies. For example, investments in the first production plant are typically large and risky and require patience and expertise from the financiers,” says Auli Nikkilä, Investment Officer at Nefco.
Nefco’s Investment Officer Auli Nikkilä.
Picture: Jussi Ratilainen
Nefco’s financing options include loans on market terms up to EUR 5 million, equity-type financing, and financial support for feasibility studies. So far, more than 600 growth companies have received funding from Nefco. Nefco’s Finnish customer companies include Norsepower, Pure Waste Textiles, Sensible4, Skipperi, Sulapac and Tracegrow.
”Nefco can take more risks than commercial banks if the project benefits the environment. Sectors of particular interest to us are manufacturing, energy, materials, transport, water, circular economy and food and agriculture. You can get started by contacting us and telling about your company’s solution and business. Our way of working with companies is collaborative and often the company ends up developing its operations and making them more sustainable across the board.”
Helsinki Region Chamber of Commerce / Enterprise Europe Network