(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 20. The European Investment Bank (EIB) and Societe Generale have signed a Memorandum of Cooperation to expand joint efforts supporting innovative, fast-growing small and mid-cap companies in the cleantech sector, Trend reports with reference to EIB.

The partnership aims to close a persistent financing gap faced by emerging cleantech manufacturers, which often operate with long production and sales cycles and struggle to secure sufficient working capital under competitive conditions. By combining EIB guarantees with Societe Generale's working capital facilities, the initiative will help unlock financing for start-ups and scale-ups whose growth is often constrained by limited access to liquidity.

Backed by up to €250 million under InvestEU - the European Commission's programme for innovation and sustainability - the EIB will provide guarantees serving as collateral for cleantech companies. This will enable Societe Generale to extend working capital support, such as advance payment and performance bonds. The programme forms part of Societe Generale's broader strategy to accelerate assistance to“Emerging Leaders” through its environmental transition envelope launched in 2023.

The EIB and Societe Generale will focus on companies developing solutions that advance decarbonisation, promote sustainable use and protection of natural resources, foster the circular economy, support the sustainable bioeconomy, and prevent or mitigate environmental pollution. Cleantech technologies targeted under the agreement span multiple sectors, including energy, mobility, circular economy, bioeconomy and industrial decarbonisation.

The support forms part of TechEU, the EIB Group's innovation acceleration programme, and contributes to the objectives of the EU Net-Zero Industry Act.

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