Vilnius-based HeavyFinance, a company on a mission of removing one gigaton of CO2 emissions by 2050 through investment in sustainable agriculture, is seeking to raise €50M for a private credit fund to support small and medium-sized agricultural businesses in Europe.
This funding will be specifically tailored to assist in the decarbonisation efforts within the agricultural sectors of Bulgaria, Latvia, Lithuania, Poland, and Portugal.
EIF Chief Executive, Marjut Falkstedt, says, “HeavyFinance is empowering European farmers to cultivate a more sustainable future.”
“With the support of the EIF and InvestEU, we are nurturing the growth of regenerative agriculture, contributing to decarbonisation, unlocking the potential of our land and fostering a more resilient planet.”
How will the funds be utilised?
The EIF has pledged €20M as a cornerstone investor for the fund. The agreement was facilitated with assistance from the InvestEU programme, designed to catalyze over €372B in additional investments between 2021 and 2027 to further EU policy objectives, notably the green and digital transitions.
The fund will provide mid-term debt capital to small and medium-sized agricultural businesses, enabling them to adopt greener practices such as “no-till farming” (using no or less ploughing), reduced synthetic fertilizer use, and less polluting farming equipment, thereby lowering their carbon footprint.
Laimonas Noreika, HeavyFinance CEO and founder, says, “Farmers are facing unprecedented challenges due to climate change, but they are also at the forefront of finding innovative nature-based solutions.”
“This fund represents a crucial step in HeavyFinance’s commitment to eliminating one gigaton of carbon dioxide from the atmosphere by 2050.”
Commissioner for the Economy, Paolo Gentiloni, adds, “Small and medium-sized businesses are the backbone of Europe’s economy. They are simultaneously affected by climate change and play a vital role in addressing it. Thanks to the InvestEU programme, we will provide SMEs active in agriculture with the finance they need to work towards decarbonisation.”
“The support will help them for instance to upgrade their equipment and expand working capital. This, in turn, will enable growth and job creation. I am delighted that companies in Bulgaria, Latvia, Lithuania, Poland, and Portugal will be supported by this agreement.”
The EU recognises soil as a key carbon sink and considers the agricultural industry pivotal in attaining climate neutrality by 2050. It plans to remove 0.376 tons of CO2 equivalent per year for every €1,000 invested, aligning with the European Investment Fund’s environmental guidelines.
Brief about HeavyFinance
Founded in 2020, HeavyFinance aims to promote sustainable agriculture and carbon storage on farmland. Using over 10,000 soil samples, the company measures carbon storage while enabling over €50M in agricultural loans.
These funds support sustainable practices, equipment modernisation, and increased working capital in agriculture.
Focusing on small and medium enterprises, HeavyFinance has provided over 1,700 loans to farmers, facilitating their transition to more sustainable agriculture.
Intending to remove one gigaton of CO2 emissions through agricultural financing, HeavyFinance operates as a marketplace connecting investors with European farmers, facilitating financing for ventures in Bulgaria, Latvia, Lithuania, Poland, and Portugal.
About EIF and InvestEU
As a key component of the European Investment Bank Group, the European Investment Fund (EIF) is dedicated to aiding Europe’s small and medium-sized enterprises (SMEs) in accessing finance.
The EIF specialises in crafting venture and growth capital, guarantees, and microfinance tools tailored for this market segment. Through these efforts, the EIF claims to play a pivotal role in advancing essential EU policy goals such as enhancing competitiveness, fostering growth, investing in human capital, and promoting climate action.
The InvestEU programme mobilises public and private funds to fuel sustainable recovery in the EU, aligning investments with priorities like the European Green Deal and digital transition. The programme has three components: an InvestEU Fund, an InvestEU Advisory Hub and an InvestEU Portal.
The programme comprises three key components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal.
The InvestEU Fund utilises diverse financial partners to implement projects, leveraging a €26.2B EU budget guarantee to mobilize a minimum of €372B in additional investments.