HeavyFinance secures €14m funding deal from Multitude Bank
HeavyFinance has entered into a partnership with Multitude Bank which will see the bank invest €14m (£11.52m) in loans for small- and medium-sized agricultural businesses in Europe.
The funding will be made through a debt-asset securitisation deal, secured by a portfolio guarantee of up to €10.5m provided by the European Investment Fund (EIF).
HeavyFinance announced the EIF portfolio guarantee in October, which aims to support agricultural businesses in Poland and Lithuania on their sustainability transformation.
“Farmers are at the forefront of the fight against climate change, yet their ability to adopt sustainable practices often depends on access to capital,” said Laimonas Noreika, chief executive of HeavyFinance.
“By providing the financial tools they need, we can accelerate the transition to regenerative agriculture, empowering farmers to nurture one of the planet’s largest natural carbon sinks – our soil – and preserve its health for generations.
“This partnership between HeavyFinance and Multitude Bank will help hundreds of small and medium-sized farms advance their sustainability journey.”
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“We are proud to announce a landmark partnership with HeavyFinance, which underscores our commitment to delivering innovative, solution-oriented financial services,” said Alain Nydegger, chief executive of wholesale banking at Multitude.
“This initiative is a testament to our dedication to addressing climate change and supporting impactful sustainability efforts.
“We want to illustrate here very clearly that sustainability can be defined through profitable business practices.”
Read more: HeavyFinance secures investment from Lithuanian institution
Multitude Bank plans to begin investing in loans originated by HeavyFinance from December 2024, with full deployment expected by the end of 2025.
“We are honoured to partner with HeavyFinance, a purpose-driven climate tech company dedicated to transforming agriculture and achieving their ambitious goal of removing one gigaton of CO2 emissions by 2050,” added Antti Kumpulainen, chief executive of Multitude Bank.
“This collaboration not only furthers HeavyFinance’s growth in customer base and geographic reach but also amplifies awareness of ESG priorities.”
Read more: HeavyFinance secures investment from Lithuanian institution
