EIB helps Rabobank subsidiary to create €50m pot for renewables, SMEs
The European Investment Bank is set to sign off on a €200m funding line to provide finance to SMEs in Ireland and the Netherlands through a subsidiary of Dutch lender Rabobank.
The funds will be provided to Rabobank's vendor financing operation DLL next month to deploy towards projects that can demonstrate a positive climate impact in Ireland.
The funds will be available for renewable energy and energy efficiency projects such as solar, wind and lighting. DLL Ireland will match the €25m to create a €50m pool.
It is the first time that the European Investment Bank has provided funds to Rabobank for SMEs in Ireland.
DLL has already acted as an intermediary for EIB funds in Germany, Poland, Spain, Portugal, Sweden, the Netherlands and Italy.
DLL told the Irish Independent that the funds are exclusively for small and medium-sized companies, as well as mid caps for projects that can demonstrate "a positive climate impact".
Fergal O'Mongain, group treasurer and country manager for DLL Ireland, said that sustainability is essential for both DLL and those it works with.
"Through our Life Cycle Asset Management (LCAM) programme, we provide end-to-end financial solutions for the complete asset life cycle thereby contributing to the circular economy," Mr O'Mongain said.
"EIB's funding, focusing on positive climate projects only, is truly supporting us in this mission."
A spokesman for EIB said it is the first time that it has worked with Rabobank to support business investment in Ireland.
"Because of that we're doing it in conjunction with lending in the Netherlands but we'd very much like to ramp it up with a second round."