The European Investment Fund (EIF) has provided UniCredit Group with two guarantees worth €370 million to boost investments by SMEs and small mid-caps across seven EU countries, including Croatia, the European Commission said on Wednesday.

The EIF is a financial institution that is part of the European Investment Bank Group. Its main mission is to support European micro, small, and medium-sized enterprises by supporting their access to finance and venture capital.

The EIF guarantees, backed by the InvestEU programme, will enable UniCredit to provide loans under favourable conditions to 2,500 SMEs and small mid-caps across Europe and mobilise investments of about €1 billion in support of the real economy, the Commission said, adding that the resources will be primarily dedicated to investments that contribute to the green and digital transition, but also to boost the cultural, educational, and social sectors.

The seven countries are Bulgaria, Croatia, Czechia, Hungary, Romania, Slovakia, and Slovenia.

The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition.

The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion.

As part of UniCredit’s green lending strategy, loans will also be provided to housing associations and individuals for their renewable energy and energy efficiency investments in residential buildings, as well as to promote the development of sustainable mobility.

“Thanks to this agreement, businesses in Bulgaria, Croatia, Czechia, Hungary, Romania, Slovakia, and Slovenia will be able to accelerate their transition towards a greener and more digital economy, for instance with investments in the energy efficiency of residential buildings,” said Economy Commissioner Paolo Gentiloni.