The European Investment Bank (EIB) has signed an agreement with DLL establishing support for Dutch and Belgian SMEs.
The credit facility includes €100m (£89m) and is intended to enable Dutch and Belgian companies engaged in ‘sustainable and circular business’ to benefit from a lower interest rate. The funding can also apply to mid-cap companies in region with less than 3,000 employees.
Through this EIB funding facility approximately 200 businesses will be able to benefit from a decreased interest rate. The total sum of the loan will be split between Belgium and The Netherlands depending on the incoming requests.
Jeroen van Beeck, managing director at DLL Benelux, said: “SME and mid-cap companies in the Netherlands and Belgium increasingly want to transition to a circular business model. DLL sees both the societal and economic value of this business model and acknowledges the necessary investments that go with this. We are pleased that through this credit facility we can accommodate entrepreneurship and can facilitate innovative business.”
EIB President Werner Hoyer said: “Investing in the circular economy means changing people’s point of view on how the world uses its resources. The bank is already one of the largest financiers of climate action projects worldwide, and we expect initiatives like the circular economy to have a real impact in the long run.”
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals, including promoting a circular economy.
DLL is a global vendor finance company with more than €30bn in assets. Founded in 1969 and headquartered in Eindhoven, DLL provides asset-based financial solutions across a wide range of industries.
DLL’s portfolio grew 6.2% year-on-year to €32.2bn (£29.2bn) in the six months to June, with markets in the Benelux region reporting particularly strong performance.
Rabobank’s vendor finance division reported a 5% increase in total revenues, to €699m. A 4% drop to €491m in net interest income was offset by a 69% jump in income from fees, to €54m.