A new €400 million fund is being established to finance and support SMEs in Spain and Italy, and contribute to a greener economy.
The European Investment Bank (EIB) has partnered with equipment and technology asset finance company DLL, to deliver the funds. EIB has provided €200 million in financing to DLL, and DLL is set to provide a further €200 million.
The partnership is expected to strengthen DLL’s leasing solutions for the transport, machinery and bio-economy sectors and will be utilised by the company to increase its support of sustainability investments for Spanish and Italian SMEs.
Furthermore, DLL will increase its financing for projects focused on the transition to a low carbon economy, including the installation of solar panels, replacement of self-propelled agricultural tractors and substitution of diesel-fuelled forklifts with electric equipment.
Emma Navarro (pictured), vice president at EIB, stated: “Supporting SMEs is one of the EIB Group top priorities, especially in a difficult context such as the one we are in today, with SMEs among the hardest hit by the pandemic. Thanks to this operation, companies will be able to access new credit lines to maintain or continue growing their business and thus create jobs, while contributing to a green economic recovery of the EU."
As well as promoting sustainability, the programme will establish leasing as an alternative financing solution to standard bank loans, and focus on the particular benefit to SMEs which typically struggle to provide sufficient collateral to secure loan financing, especially during hard times.
This marks the third partnership between EIB and DLL, and the first transaction between the two with a focus on sustainability for Spain and Italy. Spanish companies will have access to 65% of the facility, while Italian businesses will have access to 35%.
Luca Nuvolin, general manager Italy and head of region south at DLL, added: “Many of our customers are going through difficult times and dealing with commercial uncertainty. DLL has a proud history of partnership and we are thrilled that through this EIB transaction we will be able to serve select SME customers in Spain and Italy and can strengthen our sustainability ambitions through support of projects contributing to a low carbon- economy.”
Founded in 1969, DLL provides financial solutions for a variety of industries including the agriculture, clean technology, construction, transportation and technology sectors. With a managed portfolio of more than €35 billion, the company partners with equipment manufacturers, dealers and distributors to enable businesses to more easily access equipment, technology and software. Headquartered in the Netherlands, DLL currently operates in more than 30 countries worldwide.
