Combining profit and green thinking

What do we finance?

In collaboration with other financial institutions (e.g. your bank), we co-finance projects within the following areas:

• Environmental savings
• Renewable energy sources
• Resource effeciency

It is possible to lend up to 60 pct. of the total costs associated with the given project. The individual loan amount ranges from DKK 2 million up to DKK 400 million with a maturity of up to 30 years.

Who can apply for a loan?

We are able to grant loans to all company types and sizes, non-profit housing associations and public companies and institutions, who wish to implement green solutions.

We are also able to finance the various suppliers, who develop and deliver the technology that supports sustainable development.

What criteria should be fulfilled in order to be eligable for a loan?

In order to be eligable for a loan from The Danish Green Investment Fund two fundamental criteria must be fulfilled.

First, the project must contribute to the sustainable development of society. It must be possible to measure a green effect, e.g. in terms of reduced CO2 emmission or reduced energy consumption.

Second, the project must be economically viable. This means that it should be possible to repay the loan with an interest matching the underlying risk.

If you are a supplier of sustainable technology, please notice that we only finance technologies, which have proven to be commercially viable.

If you are developing a technology, which is still in its early stages, or if you have a smaller green initative, please contact  Innovationsfonden.

What does a loan cost?

The price of the individual loan will reflect the risk associated with the project. This means that the interest rate will be determined individually with each project.

The price consists of three elements:

• An individually determined variable interest rate.
• An establishment fee reflecting the scope of the project.
• If needed, costs associated with the establishment of collateral.

Costs associated with loan agreement alterations

• Early repayment: DKK 15,000 unless otherwise agreed.
• Exceptional redemption payment: DKK 10,000 unless otherwise agreed.
• Changes in financing and securities: minimum DKK 15,000 (indicative, depending on time consumption and external costs if any.
• Audit and account charges: DKK 650.
• Late payment reminder: DKK 100.
• Interest on overdue payment of 9 pct. External costs are to be paid by borrower.

Other fees and costs may be separately agreed.

How is the interest rate determined?

The interest rate consists of two components: 1) a marginal determined in relation to the risk associated with the project 2) The Danish Green Investment Fund’s costs associated with the financing of the means that the fund is lending.