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HeavyFinance and the European Funding Fund (EIF) have signed a portfolio assure of as much as €10.5m (£8.7m) to help agricultural companies in Poland and Lithuania on their sustainability transformation.
The assure will assist to ship €15m of recent debt financing to 550 farmers in Poland and Lithuania.
The transaction is supported by the InvestEU programme, which goals to mobilise greater than €372bn in extra funding for European Union coverage priorities over the interval 2021-27.
Various lender HeavyFinance is current in six international locations and has already enabled greater than €60m in agricultural loans to advertise sustainable practices, modernise tools, and improve working capital in agriculture.
Learn extra: HeavyFinance allocates €1.33m in July
“We’re very glad to be teaming up with HeavyFinance once more, as a way to make financing extra available for Polish agricultural companies,” mentioned EIF chief govt Marjut Falkstedt. “Boosting different financing channels is essential in a troublesome interval for European companies, and much more so for weak segments of the financial system like smaller companies which might be in search of to transition to a extra sustainable footing.”
EIB vp professor Teresa Czerwinska added: “The agriculture and bioeconomy sector is a strategic sector for the EIB Group. There’s a steady want for funding to improve bodily property, improve use of digital know-how in manufacturing processes and enhance useful resource effectivity. The sector is usually made up of farmers, small and medium-sized enterprises, mid-caps and cooperatives which might be comparatively underserved by the monetary sector. Particularly, agriculture in Poland is dealing with quite a few transitional challenges akin to: succession problem, technological problem or local weather adaptation problem. Thus, enhancing the entry to finance to this sector is essential.”
Learn extra: HeavyFinance secures funding from Lithuanian establishment
HeavyFinance founder and chief govt Laimonas Noreika continued: “Agriculture performs a crucial position in local weather change mitigation due to the soil’s skill to behave as a carbon sink, storing carbon in natural kinds for lengthy intervals. To hurry up the combat towards local weather change, we have to improve entry to capital to small and medium-sized farm house owners who personal nearly all of agricultural land in Europe.”
The InvestEU Fund is deployed by means of implementing companions that can spend money on tasks utilizing the €26.2bn EU price range assure.
The whole price range assure is meant to again the funding tasks of the implementing companions, improve their risk-bearing capability and mobilise at the least €372bn in extra funding.
Learn extra: European Funding Fund: Backing sustainable growth
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