The European Investment Bank (EIB) has signed a partnership with Rabobank, and its subsidiary DLL, to provide access to finance for SMEs and mid-cap firms with a particular emphasis on sustainability and bioeconomy, including agriculture.
Under the terms of the partnership, 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 undertaken by SMEs and mid-cap in the Netherlands.
At least 40% of the investment will be earmarked for climate-related investment, while 40% will support bioeconomy projects, including agriculture.
Rest of Europe
Outside of the Netherlands, meanwhile, DLL has secured an additional €250 million, which it will match with its own funds, to provide access to finance for SMEs and mid-caps across the EU, specifically France, Germany, Italy, Spain, Belgium, Sweden, Poland and Ireland.
In total, the combined EIB loans, along with Rabobank and DLL’s matching funds, will make €1 billion in new funding available for climate-relevant projects.
Climate financing
“It is important to understand that climate financing is a key driver of economic growth,” commented 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.
Elsewhere, Rabobank’s Carlo van Kemenade, said the bank is “proud” to extend its long-standing partnership with the EIB, adding that sustainability is an “important pillar” of Rabobank’s strategy.
“Clients are also very positive about this impact loan,” van Kemenade added. “The interest rate discount is both a reward for the impact they have as a leader in sustainability and an encouragement to continue on the path we have set with our clients.”
Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, transport, drinking water, healthcare, and SMEs. Read more here.
