Investment & Fund Management

The Normandy region implemented the Normandie Garantie Agri loan guarantee instrument to address significant market failures in access to finance for companies in the farming, agri-food, forestry, and equine sectors. This initiative was presented by regional leaders and the European Investment Bank (EIB) Group, aiming to facilitate easier access to bank loans for these sectors, which are crucial to the region's economy.

The tailored solution involved a €35 million loan guarantee fund, with contributions of €21 million from the European Agricultural Fund for Rural Development (EAFRD) and €14 million from regional authorities. The fund is designed to support between 1,000 to 2,000 projects by 2028, with an expected total loan provision of approximately €260 million. The selected partner banks—Crédit Agricole, Crédit Mutuel-CIC, and BRED-Banque Populaire—agreed to improve credit access conditions, such as offering reduced interest rates and accommodating riskier financing options.

The goals of this initiative include promoting better access to finance for projects deemed risky, assisting beneficiaries with credit access difficulties, and supporting new companies. The fund will finance both tangible and intangible investments, including advisory services and training, while property purchases are limited to young and new farmers receiving setup aid, capped at a maximum value of €150,000. This comprehensive approach aims to modernize and promote the agricultural sector in Normandy, ultimately enhancing its development and sustainability.