Nefco finances the scale up of Nordic green solutions on global markets

Small and medium-sized companies (SMEs) often face difficulties obtaining debt financing in the early growth phase due to perceived risks and a lack of assets to secure loans. Nefco, an international financial institution owned by the Nordic countries, solves this market failure by financing Nordic green scale-up companies that provide solutions that have a positive impact on the environment or climate.

Nefco – the Nordic Green Bank – accelerates the green transition by financing the initial scale-up of Nordic green solutions on global markets. To date, more than 600 Nordic growth companies have received financing from Nefco.

Nefco complements and helps mobilise financing from commercial banks and other private investors to close financing gaps for scale-up companies. What differentiates Nefco from commercial banks is that it only provides green financing.

“Nefco can take more risk than commercial banks, provided that a project benefits the environment,” says Mikael Reims, Head of Origination at Nefco.

Mikael Reims, Head of Origination, Nefco. Photo: Jussi Ratilainen

Financing for various growth stages

Nefco is actively looking for green Nordic SMEs providing commercialised and proven solutions, i.e. products or services that are ready to scale on global markets. The solutions also need to have measurable environmental benefits. Nefco evaluates project proposals and expected impact against its environmental and sustainability criteria, the EU Taxonomy and the UN Sustainable Development Goals. Furthermore, they must be technically and financially viable.

Nefco’s financing options for SMEs are tailored for various growth stages:

Typical projects financed by Nefco may require investments in machinery, equipment, facilities, technology or other resources needed for production and scaling of green solutions on international markets. Sectors that are of particular interest to Nefco include manufacturing, energy, materials, transportation, water, circular economy and food and agriculture.

Finnish green SMEs scaling up globally

The common Nordic ambition is to be a global frontrunner in the green transition and sustainability and to increase the competitiveness of Nordic businesses. As a green financier filling a critical financing gap for small and medium-sized Nordic companies, Nefco plays a key role in implementing the Nordic Vision 2030 and making the region the most sustainable and integrated in the world.

Finnish companies form a major part of Nefco’s SME portfolio. Some of those most recently financed by Nefco include:

Tracegrow: A cleantech company whose innovative technology offers a sustainable solution for recycling valuable materials and returning them to circulation for various industries. Tracegrow’s recycled materials offer a very low-emission solution for agriculture and other industries that prevents the need for energy-intensive mining operations of virgin raw materials. With its certified organic fertilisers already available in 15 markets, Tracegrow’s technology development and market expansion was accelerated with a fast-track loan from Nefco. Read more about Tracegrow

Tracegrow’s technology converts industrial side streams and recycled batteries into valuable products. Photo: Tracegrow

Pure Waste Textiles: A pioneer in textile recycling, Pure Waste is a forerunner in producing sustainable garments from waste-based textiles. After conducting a feasibility study financed by Nopef, Pure Waste established a subsidiary in India in 2019. With further financing from Nefco, Pure Waste continues to grow internationally by strengthening its inventories in the production phase in India to produce and process more waste-based textiles and increase product demand. Read more about Pure Waste

Pure Waste T-shirt is made from 100% recycled and waste-based fibres. Photo: Pure Waste

HealthFOX: HealthFOX’s solution improves access to healthcare facilities and expertise in rural areas while simultaneously having a positive environmental impact. Its remote solar-powered healthcare facilities decrease travel distances, reducing patients’ carbon footprint. The results of the Nopef-funded feasibility study encouraged HealthFOX to enter the South African market. Since then, the company has piloted its Imaging Room concept and lined up local partners in its ecosystem. HealthFOX is growing quickly and plans to have 1,500 doctors in its network by 2023. Read more about HealthFOX

HealthFOX’s brings healthcare facilities and expertise to rural areas. Patient taking a remote call with the doctor arranged by healthcare worker. Photo: HealthFOX

How to apply for financing from Nefco

Nefco encourages companies to contact its investment experts to discuss potential projects. “If the company has an environment-driven solution and is ready to grow on international markets, we are always happy to hear more,” Reims says.

Visit the Nefco home page to learn more and contact investment experts: Financing for companies | Nefco

For more information, please contact:

Mikael Reims, Vice President, Origination
mikael.reims(a)nefco.int, +358 10 6180 670

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