HeavyFinance raises €50M to boost sustainable farming in Europe

Agricultural small and medium-sized businesses are being given a boost today under a plan by HeavyFinance, a marketplace that connects investors with European farmers. The company is raising €50 million for a private credit fund to help advance agriculture’s decarbonisation in Bulgaria, Latvia, Lithuania, Poland and Portugal.

The fund will provide mid-term debt capital for small and medium-sized agricultural companies to support 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 “no-till farming” (using no or less ploughing), less reliance on synthetic fertilisers, and less polluting farming equipment.

According to HeavyFinance CEO and founder Laimonas Noreika:

“Farmers are facing unprecedented challenges due to climate change but are also at the forefront of finding innovative nature-based solutions.

This fund represents a crucial step in HeavyFinance’s commitment to eliminating one gigaton of carbon dioxide from the atmosphere by 2050.”

Established in 2020, HeavyFinance has taken over 10,000 soil samples to help measure carbon storage on farmland. The company has already enabled more than €50 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 facing barriers to financing from traditional institutions to help them advance their transition to more sustainable agriculture

.As a cornerstone investor, the EIF has committed €20 million to the fund. This sum will not only boost the fund but also help attract additional investors — both public and private. 

This agreement was made possible with the support of the InvestEU programme, which aims to trigger more than €372 billion in additional investment between 2021 and 2027 for EU policy priorities, including the green and digital transitions.

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. 

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

 “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.”