The funds are earmarked for the energy transition, bioeconomy initiatives, and agri-tech modernisation across EU countries. The deals prioritise climate action and sustainable food and energy transitions.
Rabobank will borrow €250 million from the EIB and match this amount with its own funds, making €500 million available to support small-scale projects with a focus on sustainability and agriculture.
At least 40% of investments are earmarked for climate-relevant investments, and at least 40% of the available funding will be directed towards bioeconomy sectors, including agriculture.
DLL, which specialises in asset-based financing solutions, has secured an additional €250 million, which it will also match with its own funds, aiming to improve access to finance for SMEs and mid-caps across the EU. The focus will be on France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands, targeting investments in sustainability by local companies.
In total, the combined EIB loans as well as Rabobank and DLL’s matching funds will make €1 billion in new funding available for climate-relevant and agricultural projects.
Addressing the gaps in traditional agricultural financing
Previously, the EIB and Rabobank have made available a series of impact loan facilities, aimed at sustainable entrepreneurs, including in the agricultural sector.
DLL and EIB have also previously made financing available for sustainable SMEs.
From the EIB’s perspective, “one of the objectives of these facilities is to support entrepreneurs in the agricultural sector in financing sustainability-related investments,” a spokesperson told AgTechNavigator.
“Through DLL this could for example be the acquisition of sustainable equipment for farms, whereas with Rabobank the focus could be on sustainability investments such as energy efficiency of buildings and solar panels.”
Through this partnership, “our goal is to help SMEs and mid-caps across the EU access finance for sustainability-focused investments”, explained Kahina Larichi, DLL’s global communications business partner — sustainability, circularity and energy transition.
Examples include “financing for precision farming technologies and digitally optimised irrigation systems”, “circularity transition that extend asset lifespans and increase their utilisation” and “energy transition, supporting energy-efficient, energy-producing, energy-infrastructure, and energy-consuming assets across the energy value chain”.
“What’s exciting about this partnership is its potential to accelerate adoption of such technologies and practices at scale,” she told AgTechNavigator.
“Of course, final lending decisions will be made in accordance with eligibility criteria, but our intent is to finance assets that contribute to a more sustainable, resilient economy.”
Growing climate risks
The new funds come at a critical time as European farmers face growing climate risks and economic pressures.
Climate financing is a key driver of economic growth, said EIB Director General Jean-Christophe Laloux. “We have to look at the bigger picture, which is that climate change is disrupting business and economic behaviours. We have a long track-record with Rabobank and DLL in terms of climate relevant financing, and hope that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects.”
Financing sustainability-related investments in the agriculture sector is fundamental to “long-term business success” added Lara Yocarini, member of the managing board, Rabobank, and CEO and chair of the executive board of DLL.
“The attractive funding from the European Investment Bank will enhance our ability to provide more accessible, affordable, and tailored leasing solutions, ultimately reducing barriers for our partners and customers to invest in more sustainable equipment and technology.”
