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HeavyFinance is raising €50 million for a private credit fund that will support European agricultural small and medium-sized businesses (SMEs) with tailor-made finance. The funding will be available to finance solutions to advance the decarbonisation of agriculture in Bulgaria, Latvia, Lithuania, Poland and Portugal.
The money will come from a HeavyFinance credit fund to which the European Investment Fund (EIF) has committed €20 million. This sum will not only boost the fund but also help attract additional investors – both public and private. This agreement was made possible with the support of the InvestEU programme, which aims to trigger more than €372 billion in additional investment between 2021 and 2027 for EU policy priorities, including the green and digital transitions.
The fund will provide mid-term debt capital for small and medium-sized agricultural companies to support them in their efforts to reduce their carbon footprint through greener practices. These include alternative soil-friendly techniques that sequester carbon and improve soil health. Examples include so-called “no-till farming” (using no or less ploughing), less reliance on synthetic fertilisers and use of less polluting farming equipment.
he European Union recognises soil as a significant carbon sink and the agricultural industry as crucial to achieving the goal of climate neutrality by 2050. The fund aims to remove 0.376 tons of carbon dioxide equivalent per year for every €1 000 invested, aligned with the European Investment Fund's Climate Action and Environmental Sustainability guidelines.
March 14, 2024/ EC/ European Union.
https://ec.europa.eu/commission/
