The European Investment Bank (EIB), Dutch lender Rabobank, and its asset finance subsidiary DLL have partnered to enhance access to finance for small and medium-sized enterprises (SMEs) and mid-caps across Europe.

The collaboration aims to provide €1bn ($1.16bn) in funding, with a focus on projects relevant to climate and agriculture.

EIB director general Jean-Christophe Laloux said: “We have to look at the bigger picture, which is that climate change is disrupting business and economic behaviours.  

“We have a long track record with Rabobank and DLL in terms of climate-relevant financing, and hope that this facility can convince other financiers to make available more support for entrepreneurs developing more sustainable projects.”

Rabobank will get €250m from the EIB and match it with its own funds, resulting in €500m to support Dutch SMEs and mid-caps.

The emphasis will be on sustainability and agriculture, with at least 40% of investments earmarked for climate projects and another 40% directed towards bioeconomy sectors, including agriculture.

DLL has also secured €250m from the development bank, and it will match it with its own funds.

Its initiative focuses on countries such as France, Germany, Italy, Spain, Belgium, Sweden, Poland, Ireland, and the Netherlands.

The funding targets investments in sustainability by local companies.

DLL operates as a global asset finance company for equipment and technology, managing a portfolio exceeding €47bn.

Established in 1969 and based in Eindhoven, Netherlands, DLL delivers financial services across sectors such as agriculture, construction, and energy transition in more than 25 countries.

Rabobank member of the managing board, and DLL CEO and chair of the executive board Lara Yocarini said: “As a transition partner for a better world, DLL believes that sustainability is fundamental to long-term business success.

“The attractive funding from the European Investment Bank will enhance our ability to provide more accessible, affordable, and tailored leasing solutions, ultimately reducing barriers for our partners and customers to invest in more sustainable equipment and technology.”

In May, DLL released its 2024 annual financial results, showcasing portfolio growth and an increase in net interest income despite facing economic difficulties in some areas.

The company’s portfolio grew by 7% from 2023, reaching €47bn.  

The growth was driven by all global business units and regions, with the exception of Latin America, which encountered substantial challenges over the year. 

DLL’s net income increased to €1.9bn, a 7% rise from 2023.  

However, profitability was affected by higher impairment charges, notably in Brazil’s food and agricultural sector.  

As a result, DLL’s net profit for 2024 was €407m, a decrease from €438m in 2023.