Priya Patel
TLDR:
- European Commission HeavyFinance is raising €50 million for a private credit fund to support agricultural SMEs in Bulgaria, Latvia, Lithuania, Poland, and Portugal with decarbonisation finance
- The fund will provide mid-term debt capital for small and medium-sized agricultural companies to support them in reducing their carbon footprint through greener practices
An article from Mirage News discusses the €50M Decarbonisation Aid for Agri-SMEs through Lithuanian Fintech company HeavyFinance. The European Commission is supporting the raising of funds for a private credit fund to provide financial assistance to agricultural small and medium-sized businesses (SMEs) in Bulgaria, Latvia, Lithuania, Poland, and Portugal in their efforts towards decarbonisation. The funding will help these companies upgrade equipment, expand working capital, and adopt greener practices to reduce their carbon footprint. The article highlights the importance of this initiative in addressing climate change and supporting the vital role that SMEs play in the economy.
The European Investment Fund (EIF) has committed €20 million as a cornerstone investor in the fund, aiming to attract additional public and private investors. This agreement is made possible with the support of the InvestEU programme, which aims to trigger significant additional investments for EU policy priorities. The fund will focus on providing debt capital to support agricultural companies in implementing sustainable practices and reducing carbon emissions. Examples of these practices include no-till farming, reduced use of synthetic fertilizers, and more environmentally-friendly farming equipment.
HeavyFinance, the fintech company behind the initiative, is dedicated to eliminating one gigaton of carbon dioxide from the atmosphere by 2050. The fund aligns with the EU’s goal of climate neutrality by 2050 and aims to remove a significant amount of carbon dioxide equivalent each year for every €1,000 invested. The company has already facilitated over €50 million in agricultural loans to promote sustainable practices and support the transition to more environmentally-friendly agriculture. Overall, the fund will play a crucial role in supporting SMEs in the agriculture sector to advance their decarbonisation efforts and contribute to a more sustainable future.
