Scheme Overview
MDB’s sustainability themed products aim to support positive environmental outcomes across Malta and Gozo.
What can MDB’s sustainability themed products cover?
Investment in measures directed towards:
- Green investment (climate change mitigation, climate change adaptation, transition to a circular economy, investments related to environmental impact and sustainable management of natural resources, protection and restoration of biodiversity and ecosystems).
- Social Accessibility Investment
- Any investment by SMEs classified as green based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise.
| SGS – S | GCLS – S | |
| The MDB provides an uncapped guarantee of 80% on a portfolio of loans generated by the intermediary partner banks. | The MDB provides a 60% portfolio guarantee on the commercial bank’s 50% share of each lending proposal. | |
| Loan amount – between €10,000 and €1,000,000. | Loan amount – between €1,000,001 and €10,000,000. | |
| Maximum term of 10 years. | Maximum term of 15 years. |
Terms & Conditions
| Product Name | SME Guarantee Scheme – Sustainability | Guaranteed Co-lending Scheme -Sustainability |
| Objective | To enhance access to bank finance for business investments towards climate action, and environment sustainability. This includes investments for climate action purposes, and environmental sustainability, as well as green investments in agriculture and forestry and in social accessibility investment. Moreover, it also includes any investment by eligible beneficiaries classified as green, based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise. | |
| Structure | The MDB provides an uncapped guarantee of 80% on the loan portfolio of the financial intermediary. The scheme will be open to all accredited credit institutions. | The MDB provides a 60% portfolio guarantee on the commercial bank’s 50% share of each lending proposal. The scheme will be open to all accredited credit institutions. |
| Portfolio Volume details | The loan portfolio allocated to the Sustainability schemes is to be apportioned based on the take-up of loans under the SGS-S and GCLS-S accordingly. The portion of the loan portfolio reserved for the SGS-S and GCLS-S will be apportioned by the MDB between the accredited intermediary partner banks participating in the schemes on a first-come-first-served basis. | |
| Last date for inclusion of loans under the scheme | 19/04/2027 for Sustainability products. | |
| Term of Loan | Maximum 10 years. | Maximum 15 years. |
| Moratorium | Maximum 12 months from first disbursement date (at the start of the repayment period). A longer moratorium, but not exceeding 18 months, may be granted on a case-by-case basis subject to MDB approval. | Maximum 12 months from first disbursement date (at the start of the repayment period). A longer moratorium may be approved by the MDB, on a case-by-case basis. |
| Size of Loan | Facilities of €10,000 up to €1,000,000. The minimum loan size may vary from one financial intermediary to another. | Facilities of between €1,000,001 up to €10,000,000. |
| Security | Take up of collateral is restricted to a maximum of 20% at portfolio level. | Minimum of 20% upfront cash contribution. |
| State Aid Regime | De Minimis. | De Minimis regulation and/or the General Block Exemption Regulation (GBER). |
| Loan eligibility | The purpose of the financing covers a wide spectrum of possible activities including: (a) Investment in measures directed towards: Green investment (climate change mitigation, climate change adaptation, transition to a circular economy, investments related to environmental impact and sustainable management of natural resources, protection and restoration of biodiversity and ecosystems). or satisfying the: Green Investments in Agriculture and Forestry criteria (Sustainable forests and other climate mitigation investments, investments in the 2 L 124/36 – Commission Recommendation of 6 May 2023 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) development or adoption of sustainable and organic agricultural practices). Social Accessibility Investment criteria (investments to enhance accessibility of services, products and infrastructures and to develop assistive technologies as well as for making the organisation and its premises accessible for customers and employees with disabilities and/or impaired function. (b) Any investment by SMEs classified as green based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise. | |
| Eligible applicants | The scheme is open to all SMEs, small mid-caps (with up to 500 employees) and small public enterprises in all economic sectors, except the excluded and prohibited activities of the MDB and the EIF. Furthermore, SMEs small mid-caps and small public enterprises active in sectors specifically excluded in Article 1 of the de minimis Regulation, are ineligible. | |
| Restricted and Prohibited Activities | Click here for the full list. | |
| Benefits | Besides accessing finance not otherwise available, eligible SMEs benefit from: a longer repayment period, lower collateral requirements and lower interest rates as a result of the credit risk protection from the MDB’s guarantee. | |
| Accredited credit institutions | APS Bank (SGS-S, GCLS-S) Bank of Valletta (SGS-S, GCLS-S) HSBC Bank Malta (SGS-S, GCLS-S) | |
Information for Architects
MDB’s Sustainability-themed products support a broad range of green investments, with buildings and architectural projects representing one area of potential support.
Through the MDB Sustainability Guarantee, financing may be provided for investments that improve the energy performance of buildings. An entire building project may qualify, provided that it meets the applicable eligibility requirements.
Existing buildings: Financing is available for renovation projects that significantly improve energy efficiency through eligible measures. These may include insulation, the replacement of windows and doors, upgrades to heating and cooling systems, renewable-energy installations, and other qualifying energy-saving works.
New commercial buildings: The completed building must achieve an energy performance that is at least 10% better than Malta’s Nearly Zero-Energy Building (NZEB) standard. Its gross floor area must also not exceed 5,000 square metres.
Applicants may be required to provide an Energy Performance Certificate or other supporting technical evidence demonstrating that the project meets the applicable EIF Sustainability Guarantee eligibility requirements.
Application Details for Intermediaries
