First Ukrainian defence investment guarantee issued

EIFO has issued its first guarantee to a Danish company investing in the Ukrainian defense industry. The investment aims to scale up the production of equipment for electronic drone defense, thus marking the beginning of the state-backed 134-million-euro investment guarantee.

Article 07. October 2025

Photo: EIFO has issued its first guarantee to a Danish company investing in the Ukrainian defense industry. (Shutterstock).

Equipment to combat drones are in high demand in Ukraine. This has prompted a Danish company to invest 1,6 million euro (DKK 12 million) in a Ukrainian company for them to scale up production of equipment for electronic defense.

The investment is the first to be backed by EIFO’s special Danish state 134-million-euro (DKK 1 billion) guarantee – a scheme installed by the Danish government to get more private capital to work in and for Ukraine.

The EIFO guarantee covers 70 percent of the investment and runs for seven years. EIFO has also provided a loan matching the size of the guarantee.

This means that the company - which cannot be named for security reasons - will be able to help address some of Ukraine’s current challenges in defending the country, but also contribute to Danish defense as the products are further developed and optimized.

By covering a large part of the risk, we make it possible for both large and small Danish companies to invest in the Ukrainian defense industry.

Peder Lundquist, CEO at EIFO

EIFO encourages both large and small companies to invest

At EIFO, CEO Peder Lundquist welcomes more Danish companies with ambitions to invest in the Ukrainian defense industry:

“By covering a large part of the risk, we make it possible for both large and small Danish companies to invest in the Ukrainian defense industry. We are open to all projects and technologies that contribute to defense and business development in both countries,” says Peder Lundquist.

“The first case is a very good example, and if you are a Danish company interested in Ukraine, then get in touch. This scheme gives us one billion Danish kroner to support our shared goal: to contribute to Danish Ukrainian defense innovation and resilience,” he continued.

With this investment, we are emphasizing that Danish companies do not hesitate to support Ukraine when it truly matters.

Morten Bødskov, Danish Minister for Industry, Business and Financial Affairs

Investments strengthen cooperation between Denmark and Ukraine

Minister for Industry, Business and Financial Affairs, Morten Bødskov, expresses his satisfaction that Danish Ukrainian defence cooperation is developing:

"Denmark once again shows that Ukraine’s fight for freedom is also our fight for freedom. With this investment, we are emphasizing that Danish companies do not hesitate to support Ukraine when it truly matters. Our guarantee is proof that Denmark takes responsibility and stands shoulder to shoulder with the Ukrainians – also when it comes to innovation and protection against Russian drones. It is crucial that we help Ukraine to develop the capabilities that can make a difference on the battlefield and strengthen freedom – both in Ukraine and in Europe," says Morten Bødskov.

Facts about EIFO’s investment guarantee for Ukraine:

In April 2025, the Danish government decided that EIFO could guarantee for Danish companies investing into Ukrainian defense production.
By taking on a large part of the risk for Danish companies, the investment guarantee aims to ensure more investments in the Ukrainian defense industry and provide Danish businesses with valuable experience and solutions developed and tested in combat.
The scheme targets both small and large Danish companies investing at least 134.000 euro (DKK 1 million) in, for example, the development and production of weapons, ammunition, drones or software with significant defensive relevance for Ukraine.
The guarantee can be used for direct investments in Ukrainian companies, in a Danish or foreign company with significant economic activity in Ukraine, or by establishing new companies or subsidiaries producing for the Ukrainian defense sector.
EIFO generally provides a guarantee for up to 70 percent of the equity investment in Ukrainian defense companies.
The guarantee runs for a pre-agreed period of up to seven years, after which the Danish company can sell its shares in the Ukrainian company to EIFO at a pre-agreed price.
Danish companies must pay an ongoing premium for the guarantee.
The guarantee is linked to an exit fee and a performance fee, which must be paid if the investment performs well.
EIFO also has Ukraine-oriented export credit initiatives available for the Danish defense industry.