Release date: 19 June 2023
Promoter – Financial Intermediary
AGCO CORPLocation
Description
The project concerns the Promoter's investments in Research, Development and Innovation (RDI) in the field of agricultural machinery and equipment carried out in the EU over the period 2023-2026.
Additionality and Impact
The Project will help the Promoter developing and deploying the necessary innovative product and process technologies in line with the market trends and regulatory requirements. The Project contributes to strengthening the Promoter's technology leadership and positioning by addressing the ongoing transformation in the sector, namely continuous productivity growth called for to produce more food to growing global population with less natural resources. The Project accelerates the accumulation and diffusion of knowledge within the European industry thus supporting, directly and indirectly, the green transition, growth, and employment in Europe.
The Project's activities are in line with the Bank's IDHC (Innovation, Digital and Human Capital) public policy goal. A part of the Project will be incurred in transition regions in France and Finland and, as such, contributes to the Bank's "Economic and social cohesion" crosscutting objective. A part of the Project qualifies under the EIB Climate Action and Environmental Sustainability (CA&ES) policy objective.
The investments to be financed are expected to support the EU policy priorities under Horizon Europe Cluster 6 (Food, Bioeconomy, Natural Resources, Agriculture & Environment).
The Promoter's RDI capacity ensures to implement a sound and sustainable project and thereby contributes to the Bank's policy objectives.
The Bank's contribution to the project is also supported by a combination of its advantageous terms, flexible availability and utilisation of the loan, as well as helping crowd-in other financiers, thereby facilitating the project's financing and full implementation.
Objectives
The project aims at developing and maturing new powertrain technologies with reduced environmental impact, including electric architectures, fuel cells or solutions that could allow the use of alternative fuels; the project also includes activities to improve the efficiency of farming operations for existing and new products as well as the development of new digital solutions for smart farming and precision agriculture.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 420 million
Total cost (Approximate amount)
EUR 859 million
Environmental aspects
The project's activities are not listed in the annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. The project is therefore not covered by the EIA Directive. The Bank's services will review the environmental aspects of the project during the due diligence process.
Procurement
The Promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.
Status
Signed - 29/09/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).