CaixaBank funds the energy transition of small farmers

CaixaBank once again mobilizes support for agriculture and small farms in particular. It seeks to help this specific target to follow the movement initiated by larger companies to ensure an energy transition for their activities. It mobilizes for this through a loan from its entities MicroBank and AgroBank.

FACTS

• The CaixaBank Social Bank, MicroBank, and AgroBank, its offer dedicated to professionals in the agricultural sector, are now presented by the Spanish banking group as the two entities able to carry its new loan offer called Sustainable AgroInvestment Loan.

• This is twofold:
  • by its customer target first, since it is intended exclusively for self-employed workers and micro-enterprises in the agricultural sector with fewer than nine employees and with a turnover of less than EUR 2 million;
  • by its destination, since it aims to finance their energy transition.

• A total of EUR 54 million will be made available to finance loans for small farms wishing to renew their machines (by opting for less energy efficient models) or to acquire more efficient irrigation systems, for example.

• Each sustainable agro-investment loan granted may cover 100% of the projects financed up to EUR 75 000 and for a repayment period up to a maximum of 10 years.

• The European Investment Fund (EIF) covers 70% of these loans.

ISSUES

• Extending the energy transition : The major trend in the energy transition is driven not only by financial actors but also by large companies in all sectors. The latter unlock resources to ensure their transformation, but the mobilization of smaller, more financially fragile actors is sometimes more difficult.

• Defending commitments : CaixaBank is today mobilizing two of its specialized entities to defend the deployment of this new funding offer. In this way, the group seeks to demonstrate its ability to mobilize on these themes and to demonstrate the value of these actions carried out in a more affinitarian way by its entities.

• A global effort : The new loan offer proposed by MicroBank and AgroBank is also supported by the European Investment Fund (EIF), reflecting the broader interest of the major institutions in the energy transition of the agriculture sector in its climate resilience.

PERSPECTIVE

• This position of CaixaBank in favour of the energy transition of the smallest companies in the agricultural sector recalls that of Bpifrance and Orange in France, which, in October 2024, had become partners the environmental transition of SMEs. Their mobilisation must then underline their own commitments but also the need on a wider scale to ensure the energy transition of all economic actors, regardless of their size.

• And that is the same message that CaixaBank is also trying to convey today on the specific theme of agriculture.

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