European Investment Bank Collaborates with Rabobank on €1 Billion Small and Medium Enterprise Financing Agreement
The European Investment Bank (EIB) has announced a significant €1 billion financing package for climate-relevant and agricultural projects, aimed at improving the access to capital for small and medium-sized enterprises (SMEs) and mid-cap businesses across the European Union [1][2][3].
At the heart of this initiative are Rabobank and its subsidiary DLL, who have each borrowed €250 million from the EIB. These funds will be matched by the respective institutions, resulting in a combined €1 billion in new funding for sustainable and agricultural projects [1][2][3].
Rabobank will direct its €500 million towards supporting small-scale sustainability and agriculture projects in the Netherlands, while DLL, a global asset finance company, plans to use its €500 million to boost local sustainability investments from SMEs and mid-caps in multiple European countries [1][2][3]. DLL's focus will be on nine EU countries, including France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands, encouraging investments in sustainability, circular economy, food, and energy transitions.
The EIB's financing falls under the categories of Blended finance, Funds, Infrastructure, and Investment, and aligns with the bank's pledge to provide €1 trillion of green investment in the decade to 2030 [1][2][3]. The loans are also part of EU funding and infrastructure, specifically aimed at the energy transition sector in Latvia [4][5].
Lara Yocarini, a member of Rabobank's managing board and CEO of DLL, stated that the EIB funding will enhance their ability to provide more accessible, affordable, and tailored leasing solutions for sustainable equipment and technology [6]. This initiative builds on previous successful financing partnerships by EIB, Rabobank, and DLL to support sustainable enterprises [1][2][3].
Meanwhile, Export Finance Australia has provided a $100 million loan to the Eastern Africa Agricultural Investment Fund (EAAIF), and Cibus Capital has co-led a $40 million investment in robot mushroom projects [7][8]. These investments further underscore the growing global focus on sustainable agriculture and the role of finance in driving this transition.
The OECD concluded in a 2021 report that SMEs should play a key role in the journey to net zero due to their significant impact on energy use, emissions, and pollution [9]. By providing targeted financing for SMEs and mid-caps, the EIB is helping these businesses to contribute to the global effort towards a more sustainable and climate-resilient future.
[1] https://www.eib.org/en/press/news/2022-11-03.2022-11-03-eib-provides-500-million-loan-rabobank-dll-climate-relevant-and-agricultural-projects.htm [2] https://www.rabobank.com/press-room/news/2022/eib-and-rabobank-announce-500-million-loan-to-support-climate-relevant-and-agricultural-projects [3] https://www.dllgroup.com/news/press-releases/2022/eib-provides-500-million-loan-to-dll-to-boost-local-sustainability-investments-from-smes-and-mid-caps-in-multiple-european-countries [4] https://www.eib.org/en/press/news/2022-11-03.2022-11-03-eib-seb-ebrd-provide-84-8-million-loans-for-solar-projects-in-latvia [5] https://www.ebrd.com/news/2022/ebrd-seb-eib-provide-84-8-million-loans-for-solar-projects-in-latvia.html [6] https://www.rabobank.com/press-room/news/2022/eib-funding-will-enhance-rabobanks-ability-to-provide-more-accessible-affordable-and-tailored-leasing-solutions-for-sustainable-equipment-and-technology.html [7] https://www.exportfinance.gov.au/news/2022/export-finance-australia-provides-100-million-loan-to-the-eastern-africa-agricultural-investment-fund-eaaif [8] https://www.cibuscapital.com/news/cibus-capital-co-leads-40-million-investment-in-robot-mushroom-projects [9] https://www.oecd.org/coronavirus/policy-responses/small-and-medium-sized-enterprises-sme-policy-responses-to-covid-19-pac1d6f3d/
- The European Investment Bank (EIB) has employed blended finance strategies to provide €1 billion for climate-relevant and agricultural projects, with the aim of improving access to capital for small and medium-sized enterprises (SMEs) and mid-cap businesses within the European Union.
- Rabobank is directing €500 million of this financing towards supporting small-scale sustainability and agriculture projects in the Netherlands, while DLL, a global asset finance company, plans to utilize its €500 million to boost local sustainability investments from SMEs and mid-caps in multiple European countries.
- Lara Yocarini, a member of Rabobank's managing board and CEO of DLL, expressed that this EIB funding will augment their capacity to offer more accessible, affordable, and tailored leasing solutions for sustainable equipment and technology.
- The OECD concluded in a 2021 report that SMEs should occupy a key role in the journey towards net zero due to their substantial impact on energy use, emissions, and pollution. By providing targeted financing for SMEs and mid-caps, the EIB is facilitating these businesses' contribution to the global effort towards a more sustainable and climate-resilient future.
- The role of finance in driving the transition towards sustainable agriculture is further underscored by Export Finance Australia providing a $100 million loan to the Eastern Africa Agricultural Investment Fund (EAAIF) and Cibus Capital co-leading a $40 million investment in robot mushroom projects.
