EIB and BNP Paribas Leasing Solutions unlock €200 million to finance EU agriculture and bioeconomy SMEs

The European Investment Bank has signed a €200 million ($234M) financing agreement with BNP Paribas Leasing Solutions to expand access to long-term credit for small and medium-sized enterprises and mid-cap companies in the European agriculture and bioeconomy sectors, with initial allocations expected in Germany, Spain, Italy and the Netherlands.

The deal is part of the EIB’s broader €3 billion pan-European agricultural programme, launched in 2024 to support sustainable investment across EU farming systems. At least 70% of the financing will be directed to SMEs, with the remaining 30% available for mid-cap agribusinesses. A minimum of 30% of each allocation must be dedicated to climate action and environmental sustainability, the EIB said.

The agreement is designed to improve access to longer-duration financing — a persistent gap for small farm operators and agribusinesses in EU member states — and reduce financing costs by combining EIB public capital with BNP Paribas Leasing Solutions’ pan-European distribution platform. The EIB said the programme places particular emphasis on improving access for young, new and female farmers, who often face structural barriers in securing investment finance.

In 2025, the EIB Group provided €6.9 billion in total financing to the agriculture and bioeconomy sector, with approximately 60% channelled to SMEs through partner financial institutions. The new agreement with BNP Paribas Leasing Solutions extends that capacity by mobilizing additional private capital through a leasing structure rather than direct lending — enabling asset-backed financing for farm equipment, renewable energy installations, and sustainable agricultural technology.

The announcement follows the European Commission’s temporary loosening of state aid rules allowing EU member states to subsidize up to 70% of additional fuel and fertilizer costs for farmers through end-2026 in response to the ongoing Hormuz supply shock.

Source: European Investment Bank