Investment & Fund Management

The European Investment Fund (EIF) partnered with Heavy Finance to provide a portfolio guarantee of up to €10.5 million aimed at supporting agricultural businesses in Poland and Lithuania as they transition towards sustainable practices. This initiative is particularly significant as it addresses the unique challenges faced by the agricultural sector in these countries, which include issues related to succession, technology adoption, and climate adaptation.

The tailored solution involved the EIF's guarantee facilitating approximately €15 million in new debt financing for around 550 farmers. This financing is crucial for enabling these small and medium-sized enterprises (SMEs) to modernize their operations, enhance resource efficiency, and adopt digital technologies. Heavy Finance, a climate technology firm, has already facilitated over €60 million in agricultural loans, promoting sustainable practices and increasing working capital for farmers.

The results of this collaboration are expected to not only improve access to finance for underserved agricultural businesses but also contribute to climate change mitigation efforts by supporting farmers who play a critical role in carbon sequestration. The initiative is part of the broader InvestEU programme, which aims to mobilize substantial investments for EU policy priorities, including the European Green Deal.