The European Investment Bank (EIB) is renewing its support for agri-food businesses with a EUR 600 million line of credit to financial institutions aimed at small and medium-sized enterprises in the agriculture and agri-food sectors.
The loan agreement was signed in Madrid today by the EIB and representatives of the different financial institutions at the headquarters of the Ministry of Agriculture, Food and the Environment, in the presence of Minister Isabel García Tejerina.
EIB Vice-President Román Escolano said that “with this third EIB loan earmarked exclusively for boosting access to finance for investments in the agriculture and agri-food sectors, the EIB is once again demonstrating its firm commitment to supporting Spain’s smaller businesses.” He added that “these targeted credit lines have shown themselves to be enormously efficient in meeting the needs of the sectors concerned, at a key time for consolidating the economic recovery, which is why the EIB has already pumped EUR 1 550 million worth of dedicated lines into the agriculture and agri-food sectors in the past three years”.
The EIB loan will be channelled to agricultural and agri-food SMEs via eight financial institutions: Banco Santander, BBVA, CaixaBank, Bankia, Banco Sabadell, Banco Popular, Bankinter and ICO. These will match the funds made available for SMEs in the sectors by the EIB with the same amount, meaning that a total of EUR 1.2 billion will be injected into the economy through this operation.
Small and medium-sized businesses, including independent firms and cooperatives, in different parts of the agriculture and agri-food sectors (e.g. arable, cattle, forestry, fisheries, the agri-food industry and wholesale trade) will be eligible for this loan.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has issued a guarantee to AS Citadele banka to support new lending to companies based in all three Baltic States. The Group’s first agreement with AS Citadele banka, the deal will provide capital relief for the bank and enable it to grant at least €460 million in additional loans and leases to businesses in the Baltics over the next three years. Against the uncertainty of the current economic climate and geopolitical situation, the agreement is especially welcome and affirms EIB Group’s status as a countercyclical investor.
The European Investment Bank (EIB) will lend €35 million to the Spanish multinational GAM (BME ticker: GALQ), which specialises in turnkey machinery solutions for industry, to make its rental fleet electric and develop more sustainable last-mile solutions for its subsidiary Inquieto. The loan will also be used to digitalise and develop Kirleo, the company’s vocational training school, therefore supporting digital skills development and training at the company. The EIB loan is backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. This financing is in line with GAM’s strategic approach based on innovation and sustainability.
Swedish fintech company Froda has received financial backing under the Funded Instrument of the EU programme for Employment and Social Innovation (EaSI) in order to keep supporting innovative small-businesses in Sweden. The operation is co-funded by the European Union, the European Investment Bank (EIB) and the European Investment Fund (EIF). Thanks to this support, Froda is able to provide over SEK 500 million in loans to Swedish small-business owners.