European Investment Bank
The EIB in Finland in 2016 In 2016, the European Investment Bank (EIB) provided loans for 26 projects in Finland totalling EUR 2.22bn. This is an increase of 37% compared to the previous year’s lending (2015: EUR 1.62bn) and an all-time high for EIB engagement. Last year, the Bank considerably strengthened its support for fast-growing and innovative midcaps, contributing to Finnish competitiveness. Financing under the European Fund for Strategic Investments (EFSI), a central element of the Investment Plan for Europe, helped to unlock more investment opportunities and fostered Finland’s energy efficiency.
Strengthened support for fast-growing and innovative midcaps Reinforcing its support for fast-growing midcaps (medium-sized companies, larger than SMEs, with up to 3 000 employees), in 2016 the EIB provided financing to seven innovative Finnish companies: AW-Energy, Canatu, Enevo, Frosmo, Mobidiag, NewIcon and Valmet Automotive. This enabled the growth strategy to continue and provided an alternative for equity-based financing. The operations are supported by “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020 Financial Instruments. •
AW-Energy received a EUR 10m investment for the commercialisation of “WaveRoller” technology, generating electricity using the motion of ocean waves.
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EUR 12m in financing for the development and capacity increase of Canatu’s Carbon NanoBud® based conductive film and touch sensor production in Finland. The investment further accelerated the continuing commercialisation of the company’s products and enabled Canatu to better serve customers in the consumer electronics and automotive markets.
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Enevo received an investment of EUR 15m to finance volume manufacturing and further research as well as development efforts for its revolutionary sensor technology and cloud-based operations
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management platform for the waste and recycling industry. By utilising big data analytics, advanced routing algorithms and smart wireless sensors to capture fill level data from waste bins, cities around the world can manage and optimise their waste collection operations to gain significant cost savings while increasing recycling rates and protecting the environment. •
Frosmo received a EUR 8.5m investment for a three-year investment programme for the internationalisation and product development of its B2C e-commerce optimisation solution. In internationalisation, the focus was in recruiting top talent for sales and marketing primarily to work in Europe and Asia. In product development, the focus was on the development of new features to expand on the existing customer benefits of the ground-breaking Frosmo platform.
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The EIB invested EUR 15m in the Finnish molecular diagnostics company Mobidiag. As part of the InnovFin “Infectious Disease Finance Facility”, the financing helped Mobidiag to finalise and scale up manufacturing, assay validation and commercialisation for their “Novodiag” products over the next three years. The Novodiag platform aims to offer an on-demand automated solution for small labs or decentralised units, bringing key benefits such as low hands-on time, ease of use and reliable results.
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NewIcon received a EUR 8m investment for its development and innovation activities in the field of medicine logistics. The company’s new automation solutions aim to facilitate the work of nursing staff at each stage of the medicine supply process in pharmacies and hospital wards.
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EUR 20m was granted to Valmet Automotive for the development of new products, such as rooftop systems for convertible cars, and manufacturing processes, also covering the costs of upgrading its IT and supply chain management system in support of the upgraded manufacturing processes. In this, the company strives to reduce its use of raw materials and energy as well as to minimise related waste and emissions, focussing on ecological sustainability in all of its activities.
Rolling out the Investment Plan for Europe In 2016, mobilising private financing for strategic investments through EFSI led to the closing of four transactions in Finland for a total amount of almost EUR 370m. Under EFSI support, the EIB focused on energy efficiency and renewable energy investments and backed the construction of near-zero energy buildings (NZEBs) such as the first phase of Tripla in Pasila by YIT, as well as residential housing with SATO and VVO. •
SATO Corporation was granted a EUR 150m loan for the construction of new NZEBs in urban areas and renovation investments to improve energy efficiency in existing buildings. The renovated buildings will be upgraded to comply with the optimal cost levels as defined by the Finnish Government. The project is expected to generate primary energy savings of 2 461 MWh/y, roughly equal to 460.5 ton/y of CO2 savings.
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VVO Group received EUR 75m in financing for an investment programme consisting of the 2 construction of several NZEB residential buildings, totalling around 1 800 housing units of 95 000 m in total. Areas of interest are the Helsinki Metropolitan Area and other metropolitan areas such as Tampere. Energy savings of 1 721 MWh/y of primary energy are expected, which amounts to an 18% reduction compared to the current construction standards, corresponding to 321.9 ton/y CO2 savings after project completion.
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A EUR 130m loan supported the construction of the Tripla near-zero energy building project by YIT: apart from commercial real estate, it also comprises a completely refurbished railway station and large parking facilities. The project is the cornerstone of commencing a multi-billion euro urban development and renewal scheme for the Pasila area of the Finnish capital, until recently a sizable rail and transport area but due to house some 12 000 residents by 2040. The Tripla building will be the biggest shopping centre in Finland by number of businesses and will serve as an important transport hub for citizens.
Within the EUR 100m EFSI support for media digitalisation in the Nordic region with Bonnier AB of Sweden, a EUR 14m portion was earmarked for Finland. The transaction financed research, development and innovation investments for the development of new content as well as content delivery platforms. Thus, it supported Bonnier’s migration to a digital business model for areas such as books, magazines, broadcasting and news. The European Investment Fund (EIF), part of the EIB Group and the EIB’s subsidiary specialised in risk financing for small and medium-sized enterprises (SMEs), closed two transactions in support of SMEs under EFSI for a total amount of EUR 115m. This brought total EIB Group commitments under EFSI in Finland in 2016 to six operations and EUR 485m.
Contributing to climate action Fostering climate action in 2016, the EU bank focused its efforts in Finland on projects in the energy and transport sectors. Besides the above-mentioned NZEB projects, the following projects in the energy sector supported climate change mitigation and adaptation: •
EUR 75m in financing for Lahti Energia supported the deployment of a biomass-fired CHP plant in Lahti. The new facility is set to replace the old “Kymijärvi I” coal-fired power plant by 2019 and will run on 100% certified renewable fuel. Features such as the recovery of condensation from the fuel and the recycling of ashes back into the forest as fertiliser will significantly reduce harmful emissions.
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A EUR 175m loan was provided for the construction of the combined heat and power (CHP) plant at the Kilpilahti industrial site, supplying heat to the oil refinery and chemicals plant at the same site. The new CHP is expected to reduce CO2 emissions by 20% compared to the current situation.
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EUR 100m in financing for Teollisuuden Voima Oyj (TVO) will allow the company to carry out an upgrade of certain safety systems at the Olkiluoto nuclear power plant, thus continuing to ensure a safe energy supply for a significant portion of the Finnish population. The project aims to increase the safety, reliability and operational efficiency of the two nuclear units in operation (Olkiluoto 1 and 2) by replacing the existing emergency diesel generators, adding a new diesel unit, replacing the reactor internal pumps and their frequency converters, as well as installing a new alternate coolant injection system.
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A EUR 200m loan financed Caruna’s modernisation of the electricity distribution network leading to weather-proof distribution. This project enhanced the reliability of Caruna's electricity supply via the underground cabling of networks, contributing to climate change adaptation.
In the area of sustainable transport, the EIB financed several schemes, notably: •
A EUR 180m loan was provided to Helsinki’s transport company (HKL) for the procurement of modern tram cars, the extension of existing tramlines and the refurbishment of the tram network. A large portion of the financing was dedicated to the “ARTIC” trams, specifically designed to deal with harsh winter conditions in Helsinki.
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A EUR 50m loan to Finnlines financed its environmental technology investment programme, which substantially lowers its environmental footprint by retrofitting its current fleet of 22 vessels with exhaust gas cleaning systems, a cost efficient way of complying with the EU’s 0.1% limit on sulphur content in exhaust gases. EUR 100m in financing for the second phase of the extension of the Westmetro in Espoo. The extended track will have a total length of 7 km, adding five stations to the line between Matinkylä and Kivenlahti.
Backing strategic infrastructure The EIB also continues to be an important financier of strategic infrastructure projects in Finland and in 2016 backed undertakings in the transport, education and healthcare sectors, as well as boosting the development of Finnish cities. In the area of transport, the EIB supported the extension of Helsinki-Vantaa Airport with a EUR 230m loan. The increased capacity of the airport will benefit both passengers and airlines, thereby maintaining the strong competitive position of this hub. As far as education is concerned, the EIB provided EUR 140m for the construction of four pre-school/daycare centres and three comprehensive schools in Espoo. The city’s education programme backed by the EIB also includes the extension of three school campuses and the refurbishment of one comprehensive and one upper secondary school. In the healthcare sector, the EIB financed the renovation and extension of the Mikkeli Central Hospital campus with EUR 55m. Major operational changes will consolidate healthcare and social services to provide a single site to respond effectively to the care needs of a declining but ageing population in the region. The modernisation and replacement of outdated buildings will improve hygiene and safety conditions. The EIB also provided the second tranche (EUR 100m) of the loan for the investment programme of the Hospital District of Helsinki and Uusimaa. The programme covers the investment plan for 2014 to 2017 for the renovation, adaptation and extension of buildings as well as investment in medical equipment. Both schemes should help to move Finland’s social and healthcare reform forward. Fostering urban development in Northern Finland, the EIB financed the upgrade of municipal infrastructure in Rovaniemi and Oulu. Both municipalities received a EUR 100m loan each for their investments in transport, education, healthcare, heating, water treatment, waste management and other areas.
Support for small and medium-sized enterprises Lending to smaller businesses will continue to be decisive for the real economy and is therefore one of the EIB’s priorities. The Bank provides finance to banks located in Finland, which is on-lent to Finnish SMEs and midcaps. The EU bank thus contributes to increasing the competitiveness and productivity of SMEs and midcaps and promotes growth and employment in the Finnish economy.
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Finnish small and medium-sized enterprises will benefit from EIB support thanks to the SME Initiative launched in 2016 in cooperation with the Finnish Government and the EIF. This initiative is expected to generate about EUR 400m in new SME loans on favourable terms through Finnish commercial banks. Finland is contributing EUR 40m from its European Structural and Investment Funds (ESI Funds) and national budget to this EU initiative, which will be leveraged with commercial lending through a risk-sharing mechanism. In addition to the contribution from the EIB Group, consisting of the EIB and the EIF, this will result in more SMEs benefiting from European resources on advantageous terms, such as reduced interest rates and improved collateral requirements. In 2016, the EIB also provided a EUR 125m loan to De Lage Laden, of which EUR 25m is targeted at financing Finnish SMEs. The EIF signed three operations with total commitments of EUR 185m in Finland.
EIB support for the development of commercial wave energy technology In its commitment to support innovative technologies, in 2016 the EIB invested up to EUR 10m in AWEnergy, a pioneering start-up company from Finland which developed the “WaveRoller” wave energy technology. The investment will support and accelerate the commercial roll-out of European wave energy technology. This was the first project supported by the InnovFin Energy Demonstration Project (EDP) programme, part of InnovFin (a range of EIB Group products designed to facilitate access to finance for innovative businesses). AW-Energy has developed a near-shore underwater device that converts wave energy into electrical power. This company’s flagship product, WaveRoller®, is a submerged wave energy converter based on a hinged panel that is attached to the sea bed in the near-shore area. It generates electricity from the movement of the waves (surge phenomenon) and is connected to the electric grid onshore. In 2012, the company installed three 100 kW demonstration units connected to the grid near Peniche in Portugal. The strong support of the local community and municipality was essential for the project. Its progressive approach has put Peniche on the map as one of the most interesting wave energy hubs, attracting many wave energy developers. The support of the EIB helped to keep the company firmly on track for the commercialisation of the WaveRoller®. The company has identified commercial leads in six countries and has the potential objective of selling more than 50 units in the next four years. Wave energy is the largest untapped form of renewable energy in the world with a global potential greater than the capacity of all the existing fossil fuel plants in Europe combined.
For further information on the EIB in Finland: www.eib.org/finland. Press contacts:
General contacts:
Alicja Chytla Tel: (+352) 4379-88233 Email:
[email protected] Press Secretariat Tel: (+352) 4379-21000 Fax: (+352) 4379-61000 Email:
[email protected] www.eib.org/press
European Investment Bank 98-100 boulevard Konrad Adenauer L-2950 Luxembourg Information Desk Tel: (+352) 4379-22000 Fax: (+352) 4379-62000 Email:
[email protected] www.eib.org
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