The financing forms part of the EIB’s broader €3 billion (£2.60 billion) Pan-European Agriculture Programme launched in 2024 to promote sustainable investments throughout the sector

The European Investment Bank signed a €200 million (£173.25 million) financing agreement with BNP Paribas Leasing Solutions on Wednesday to support small and medium-sized enterprises and mid-cap companies across Europe operating in agriculture and bioeconomy sectors.

The financing forms part of the EIB’s broader €3 billion (£2.60 billion) Pan-European Agriculture Programme launched in 2024 to promote sustainable investments throughout the sector. The programme specifically targets groups that often face structural barriers when raising capital, including young farmers, new agricultural entrepreneurs, and female farmers.

The operation will cover several EU member states, with initial fund allocations going to Italy, Germany, Belgium, the Netherlands, and Spain.

At least 30% of the resources will be allocated to climate action and environmental sustainability. The funds will be used for investments in high energy-efficiency agricultural equipment such as tractors and combine harvesters, renewable energy solutions, and climate change mitigation and adaptation technologies.

The programme will also support modernization and productivity in the agricultural sector, particularly through investments in assets with long economic lives that are often difficult to finance through traditional banking channels.

The initiative aims to leverage BNP Paribas Leasing Solutions’ pan-European platform to improve access to long-term credit, reduce financing costs, extend loan durations, and mobilize additional private investments. At least 70% of financing will go to SMEs, while mid-cap companies will receive up to 30%.

This operation will help European farmers and agri-food businesses invest in modern and more sustainable equipment, become more resilient, and better manage climate and market pressures, said EIB Vice President Gelsomina Vigliotti.

Neil Pein, CEO of BNP Paribas Leasing Solutions, stated the agreement demonstrates the company’s commitment to transforming European agriculture through more accessible, flexible, and customer-responsive financing.