InvestEU: European Investment Fund and Heavy Finance UAB sign portfolio guarantee of up to €10.5m to support agricultural businesses in Poland and Lithuania in sustainable[...]

• European Investment Fund (EIF) guarantee will support sustainable transformation of SMEs.
• Guarantee will help deliver around €15m of new debt financing to some 550 farmers in Poland and Lithuania.
• Alternative Fin Tech lender, Heavy Finance is present in 6 countries and provides financing to agricultural businesses.
• Transaction supported by the InvestEU programme, which aims to mobilise over €372bn in additional investment for EU policy priorities in 2021-27.

"We are very glad to be teaming up with Heavy Finance again, in order to make financing more readily available for Polish agricultural businesses," said EIF Chief Executive Marjut Falkstedt. "Boosting alternative financing channels is very important in a difficult period for European businesses, and even more so for vulnerable segments of the economy like smaller businesses that are seeking to transition to a more sustainable footing."

"The agriculture and bioeconomy sector is a strategic sector for the EIB Group. There is a continuous need for investment to upgrade physical assets, enhance use of digital technology in production processes and improve resource efficiency. The sector is mostly made up of farmers, small and medium-sized enterprises, mid-caps and cooperatives that are relatively underserved by the financial sector. In particular, agriculture in Poland is facing a number of transitional challenges related to succession, technology and climate adaptation. Enhancing the access to finance to this sector is crucial", said EIB Vice-President Teresa Czerwińska. "Therefore, we are pleased to announce the signature of the uncapped guarantee under InvestEU in Poland (and Lithuania) with Heavy Finance, which will allow the financial intermediary to offer debt financing on better terms to businesses in agriculture."

"Agriculture plays a critical role in climate change mitigation because of the soil's ability to act as a carbon sink, storing carbon in organic forms for long periods. To speed up the fight against climate change, we need to increase access to capital to small and medium-sized farm owners who own the majority of agricultural land in Europe," said Laimonas Noreika, CEO and founder of HeavyFinance: "First of its kind EIF portfolio guarantee marks a crucial step in funding the farmers who fight climate change."

Background information

The European Investment Fund (EIF) is part of the EIB Group. It supports Europe's SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2bn. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus support at least €372bn in additional investment.

HeavyFinance is a climate technology firm providing sustainable finance and investment solutions for agriculture. The company has already enabled more than €60m in agricultural loans to promote sustainable practices, modernise equipment and increase working capital in agriculture. To ensure the positive impact of external financing provided to farmers, Heavy Finance's soil scientists and agronomists collect soil samples and conduct advanced laboratory tests to measure the levels of CO2 removed from the atmosphere.

Press contacts

European Investment Bank Group: Gabriela Baczyńska | +48 502 355 634 | [email protected]

Heavy Finance: Darius Verseckas | M: +37066572919 | [email protected]