Investment & Fund Management

The European Investment Fund (EIF) partnered with The Danish Growth Fund (Vækstfonden) to address the financing challenges faced by agricultural Small and Medium-sized Enterprises (SMEs) in Denmark. The specific issue was the need for accessible financing options for young farmers looking to acquire farms, which is crucial for sustaining rural communities and promoting agricultural growth.

To tackle this, the EIF and Vækstfonden signed a COSME agreement, backed by the European Fund for Strategic Investments (EFSI). This agreement enabled Vækstfonden to provide DKK 180 million (approximately EUR 24 million) in loans to agricultural SMEs over three years. The tailored solution involved a guarantee from the EIF under the COSME programme, which facilitated the provision of additional loans to around 75 young farmers.

As a result of this initiative, the agreement is expected to significantly enhance the financial support available to young farmers, thereby contributing to job creation and economic growth in rural Denmark. The collaboration exemplifies how targeted financial instruments can effectively address specific sectoral challenges, ensuring the viability and expansion of agricultural businesses in the region.