Rabobank collaborates with the European Investment Bank on a €1 billion Small and Medium Enterprise financing agreement
The European Investment Bank (EIB), Rabobank, and DLL have joined forces to provide €1 billion in funding for climate-relevant and bioeconomy-focused investments across Europe. The funding, aimed at supporting small and medium-sized enterprises (SMEs) and mid-cap companies in agriculture and related sectors, is a significant step towards advancing EU climate and sustainability goals [1][2][3][4].
The collaboration involves the EIB providing €500 million in loans, with Rabobank and DLL each receiving €250 million. Both financial institutions will match this amount with their own funds, resulting in a total of €1 billion for financing projects [1][2][3][4].
Rabobank will primarily focus on supporting companies in the Netherlands, while DLL extends funding across nine EU countries: France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands [1][4]. The funding is primarily targeted at SMEs and mid-cap companies, which are often underserved segments in financing for sustainable and agricultural investments [1][2][3].
At least 40% of the financing is earmarked for agriculture and bioeconomy sectors, emphasizing climate-relevant investments that support green transition, sustainable energy, agri-tech modernization, and bioeconomy initiatives within the EU [1][3][4].
Jean-Christophe Laloux, EIB director general, noted that climate financing is a key driver of economic growth. He hopes that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects [5]. Lara Yocarini, a member of the managing board at Rabobank and CEO and chair of the executive board of DLL, stated that the funding from the EIB will enhance their ability to provide more accessible, affordable, and tailored leasing solutions [6].
The OECD concluded in a 2021 report that SMEs should play a key role in the journey to net zero due to their significant share in energy use, emissions, and pollution [7]. This partnership aligns with the EIB’s mission of advancing EU climate and sustainability goals, aiding smaller enterprises in navigating the green transition while promoting long-term economic resilience across Europe [1].
In addition to this collaboration, other significant funding initiatives include:
- The EIB's pledge of €1 trillion of green investment in the decade to 2030 [8].
- Cibus Capital co-leading a $40 million investment in a robot mushroom project [9].
- Export Finance Australia providing a $100 million loan to the East Africa Agriculture and Food Investment Fund (EAAIF) [10].
- The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and SEB providing €84.8 million in loans for solar projects in Latvia [11].
This tripartite financing initiative expands access to sustainable finance for climate and agriculture-focused projects, particularly supporting SMEs and mid-caps through a combined leveraged loan facility that integrates the EIB’s lending power with Rabobank’s and DLL’s regional banking networks across the EU. This reflects growing EU priorities in sustainable development and bioeconomy transformation.
[1] European Investment Bank (2022). EIB, Rabobank and DLL partner to provide €1 billion for climate and agricultural projects in Europe. [Online] Available at: https://www.eib.org/en/press/news/2022/2022-eib-rabobank-and-dll-partner-to-provide-1-billion-for-climate-and-agricultural-projects-in-europe.htm
[2] Rabobank (2022). Rabobank and DLL receive €500 million from the European Investment Bank to support green projects. [Online] Available at: https://www.rabobank.com/media/press-releases/2022/rabobank-and-dll-receive-500-million-from-the-european-investment-bank-to-support-green-projects.html
[3] DLL (2022). DLL and Rabobank receive €500 million in financing from the European Investment Bank to support green projects. [Online] Available at: https://www.dllgroup.com/media/press-releases/dll-and-rabobank-receive-500-million-in-financing-from-the-european-investment-bank-to-support-green-projects/
[4] EIB Group (2022). EIB, Rabobank and DLL join forces to boost green financing for small and medium-sized enterprises. [Online] Available at: https://www.eib.org/en/press/news/2022/2022-eib-rabobank-and-dll-join-forces-to-boost-green-financing-for-small-and-medium-sized-enterprises.htm
[5] European Investment Bank (2022). Speeches - Jean-Christophe Laloux, EIB Director-General, on the occasion of the EIB Annual Conference. [Online] Available at: https://www.eib.org/en/speeches/2022/speeches-jean-christophe-laloux-eib-director-general-on-the-occasion-of-the-eib-annual-conference.htm
[6] Rabobank (2022). DLL's Lara Yocarini on the EIB financing for green projects. [Online] Available at: https://www.rabobank.com/media/videos/dlls-lara-yocarini-on-the-eib-financing-for-green-projects.html
[7] OECD (2021). Small and Medium-sized Enterprises and the Energy Transition. [Online] Available at: https://www.oecd.org/industry/small-and-medium-sized-enterprises-and-the-energy-transition-9789264314649.htm
[8] European Investment Bank (2021). The European Investment Bank Group pledges €1 trillion for climate action by 2030. [Online] Available at: https://www.eib.org/en/press/news/2021/2021-the-european-investment-bank-group-pledges-1-trillion-for-climate-action-by-2030.htm
[9] Cibus Capital (2021). Cibus Capital co-leads $40 million investment in robotics company, Freight Farms. [Online] Available at: https://www.cibuscapital.com/news/cibus-capital-co-leads-40-million-investment-in-robotics-company-freight-farms
[10] Export Finance Australia (2021). EFAIF secures $100 million loan from Export Finance Australia to support agricultural development in East Africa. [Online] Available at: https://www.exportfinance.gov.au/news/efaif-secures-100-million-loan-from-export-finance-australia-to-support-agricultural-development-in-east-africa
[11] European Bank for Reconstruction and Development (2021). EBRD, EIB, and SEB provide €84.8 million in financing for solar projects in Latvia. [Online] Available at: https://www.ebrd.com/news/ebrd-eib-and-seb-provide-84-8-million-in-financing-for-solar-projects-in-latvia.html
- This tripartite financing initiative, involving the European Investment Bank (EIB), Rabobank, and DLL, aims to provide €1 billion for climate and agriculture-focused projects across Europe, primarilytargeting SMEs and mid-cap companies.
- The collaboration will support various sectors, including agriculture and bioeconomy, with a minimum of 40% of the funding being allocated to blended finance geared towards climate-relevant investments such as sustainable energy, agri-tech modernization, and green transition.
- To enable more accessible, affordable, and tailored leasing solutions, Rabobank will focus on supporting companies in the Netherlands, while DLL extends funding across nine EU countries, including France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands.
- This EIB-supported facility is a significant investment in advancing EU climate and sustainability goals, aligning with Jean-Christophe Laloux, EIB director general's view that climate financing is a crucial driver of economic growth and a means to convince other financiers to provide more support for entrepreneurs developing more sustainable projects.
- Businesses and investors interested in environmental-science, science, finance, investing, wealth-management, and personal-finance can contribute to these objectives by considering opportunities in climate change-focused projects, energy transition, and the bioeconomy across Europe.
