The European Investment Bank (EIB) Group has partnered with Estonian lender Coop Pank to unlock up to €249 million in new financing for local businesses. This agreement enables Coop Pank to provide loans and leases to small and medium-sized enterprises (SMEs) and Mid-Caps in Estonia, particularly targeting projects that advance gender equality, economic growth, and environmental sustainability. The deal is structured as a synthetic securitisation, allowing Coop Pank to transfer part of the credit risk of its loan portfolio to the EIB Group through guarantees, which reduces capital requirements and frees capacity for additional lending.
This transaction marks the first synthetic securitisation in the Baltics based exclusively on a single-country portfolio. It is underpinned by a €200 million portfolio of existing loans and leases, which will support up to €249 million in new lending until the end of 2028. Of this amount, at least €49 million is designated for gender equality initiatives, while a minimum of €17 million is earmarked for climate action and environmental sustainability projects. The deal’s structure includes risk protection on senior and mezzanine tranches provided by the EIB and EIF, while the remaining junior tranche is retained by Coop Pank.
EIB Vice-President Karl Nehammer highlighted the innovative nature of the agreement, noting that it demonstrates how financial instruments can simultaneously boost SME financing and advance sustainability and inclusion goals. EIF Chief Executive Marjut Falkstedt emphasized that the transaction strengthens Estonia’s banking sector and injects new funding into the economy, supporting projects with social and environmental impact. Coop Pank’s CFO, Paavo Truu, added that the agreement enhances the bank’s capacity to support local businesses and reflects its commitment to sustainable growth.
The partnership reinforces the EIB Group’s broader mission of financing projects that contribute to EU policy objectives, including climate action, technological innovation, and economic cohesion. In 2024, Estonia received €498 million in financing from the EIB Group, which has facilitated business innovation and green growth. Coop Pank, one of Estonia’s five universal banks, leverages its retail network of 320 Coop Eesti stores and a client base of 224,000 to expand the reach of these financing solutions and support local communities.
This initiative exemplifies how strategic collaboration between development finance institutions and domestic banks can unlock capital, support sustainable business growth, and advance inclusive economic and environmental objectives at the national level.
