ABN AMRO has agreed to borrow €250m from the European Investment Bank (EIB) as part of a wider SME funding programme.
Part of the funds will be made available to members of dairy farming cooperative FrieslandCampina, which wishes to invest in a plant which converts fermented manure into energy.
This latest deal marks the fourth collaboration between the two banks as they bid to make cheaper financing available to Dutch SMEs.
“The facility is meant for small companies as well as mid-caps, and at least 20% of the available financing is earmarked for sustainability projects,” said Pim van Ballekom, vice-president of the EIB.
“That is also why we are very pleased with the FrieslandCampina's collaboration under this agreement, as our earlier cooperation has shown how serious they are about climate.
“Their 2016 initiative to cut back greenhouse emissions by dairy farms through its 'Jumpstart' cooperative, is completely in line with the sustainability targets of the EIB.”
The cheaper EIB funding can be used for investments of up to €12.5m per project, depending on specific conditions.
The financing policies of the EIB remain unchanged within this framework.
“We are very happy with the continuation of our longstanding collaboration with the EIB as well as the financing of dairy farmers under this agreement,” added Daphne de Kluis, CEO of commercial banking at ABN AMRO.
“For us, the 20% in sustainable projects is a minimum limit.
“We strive to make a large portion of the facility available to our most sustainable clients and projects.
“That way, we accelerate even further in the way ABN AMRO contributes to financing the circular economy.”
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