• Loading stock data...
 Lithuanian Fintech Firm to Supports Farmers in Five European Countries


Lithuanian Fintech Firm to Supports Farmers in Five European Countries

Small and medium-sized agricultural businesses in five European countries – Bulgaria, Latvia, Lithuania, Poland and Portugal – will receive a total of $54.14 million from HeavyFinance, a Lithuania-based financial technology company to support on-farm decarbonisation and greener farming practices.

The money will come from a HeavyFinance credit fund to which the European Investment Fund (EIF), which is the cornerstone investor, has committed $21.66 million. the EIF’s contribution will not only boost the fund but also help attract additional investors – both public and private.

In fact, the EIF commitment is backed by InvestEU, an EU programme to mobilise at least $402.78 billion for European policy priorities between 2021 and 2027.

EIF Chief Executive Marjut Falkstedt said that HeavyFinance is empowering European farmers to cultivate a more sustainable future.

“With the support of the EIF and InvestEU, we are nurturing the growth of regenerative agriculture, contributing to decarbonisation, unlocking the potential of our land and fostering a more resilient planet,” Falkstedt said.

The fund will provide mid-term debt capital for small and medium-sized agricultural companies to support them in their efforts to reduce their carbon footprint through greener practices. These include alternative soil-friendly techniques that sequester carbon and improve soil health.

Examples include so-called “no-till farming” (using no or less ploughing), less reliance on synthetic fertilisers and use of less polluting farming equipment.

HeavyFinance Chief Executive Officer and founder Laimonas Noreika said that farmers were facing unprecedented challenges due to climate change, but they were also at the forefront of finding innovative nature-based solutions.

“This fund represents a crucial step in HeavyFinance’s commitment to eliminating one giga ton of carbon dioxide from the atmosphere by 2050,” Noreika added.

The European Union recognises soil as a significant carbon sink and the agricultural industry as crucial to achieving the goal of climate neutrality by 2050. The fund aims to remove 0.376 tons of carbon dioxide equivalent per year for every $1082.75 invested, aligned with the EIF’s Climate Action and Environmental Sustainability guidelines.

Established in 2020, HeavyFinance has taken more than 10,000 soil samples to help measure carbon storage on farmland. The company has already enabled more than $54.14 million in agricultural loans to promote sustainable practices, modernise equipment and increase working capital in agriculture.

Targeting small and medium enterprises, HeavyFinance has issued more than 1,700 loans to farmers Bulgaria, Latvia, Lithuania, Poland and Portugal, who were facing barriers to financing from traditional institutions to help them advance their transition to more sustainable agriculture.

HeavyFinance operates as a marketplace connecting investors – from retail to institutional – with European farmers in need of external funding to expand their operations and shift to regenerative agriculture.

Global Business Magazine

Global Business Magazine

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *