The European Investment Bank (EIB) and French-based multinational bank BNP Paribas, one of the largest banks in the world, have agreed to provide €200 million in finance for small businesses in the agri-sector.

The EIB will lend BNP Paribas Leasing solutions the €200 million to support small and medium enterprises (SMEs) in the agriculture and bioeconomy sectors.

At least 30% of the funding will be dedicated to climate action and environmental sustainability, facilitating the adoption of more resource-efficient and environmentally friendly equipment by European farmers, the EIB said.

The EIB, which is the EU's investment bank and is owned by the 27 EU member states, said that the funding operation aligns with the EU's rural development policy and promotes economic growth and employment. 

The financing is part of the EIB’s broader €3 billion pan-European agricultural programme, which was launched in 2024 to support sustainable investment across the sector.

The EIB said that the programme places a particular emphasis on improving access to finance for young, new, and female farmers, who often face "structural barriers" in securing funding.

Bank funding

The bank said that the funding will be rolled out across several EU member states, with initial allocations expected in Italy, Germany, Belgium, the Netherlands, and Spain.

The funding can support more energy-efficient agricultural equipment equipment like tractors and combine harvesters; renewable energy solutions; and technologies contributing to climate change mitigation and adaption.

The funding programme will also support the "modernisation and productivity of the agricultural sector", particularly through investments in assets with "long economic lifetimes" that are often difficult to finance through traditional banking channels.

The EIB said that, by using BNP Paribas Leasing Solutions' pan-European platform, the initiative is expected to "improve access to long-term financing, reduce financing costs, extend maturities, and mobilise additional private investment".

According to the bank, the initiative contributes to key European policy objectives, including the Common Agricultural Policy (CAP) and the EU Vision for Agriculture and Food.

It added that it also aligns with the EIB's 2024–2027 Strategic Roadmap, where agriculture and bioeconomy are identified as core priorities.

The bank said the funding also addresses "persistent market failures" in rural financing.

Commenting on the funding, EIB vice-president Gelsomina Vigliotti said: "This operation will help European farmers and agri‑businesses invest in modern, more sustainable equipment, strengthen their resilience and better manage climate and market pressures.

"By addressing persistent market gaps and working with trusted partners such as BNP Paribas Leasing Solutions, we are making long-term finance more accessible, accelerating the transition towards a more resource-efficient and competitive agriculture sector," Vigliotti said.