Rabobank to provide cut-price loans to farming and food sectors
The European Investment Bank (EIB) is partnering with Dutch lender Rabobank to provide €200m in cheap loans to Irish SMEs in the farming and food sectors.
The funds will be provided at a discount through Rabobank's vendor-financing operation DLL, with €100m being stumped up by each.
The move comes less than six months after the two bodies established a €50m pool to deploy towards projects that could demonstrate a positive climate impact in Ireland.
"That went so well for them [DLL] that they've come back to us to look for an expanded package," said EIB vice-president Andrew McDowell.
"We do lending through intermediary banks all through Europe. This is something we're trying to do more of in Ireland.
"To be frank, we didn't do as much of this as we would have liked during the financial crisis.
"This is an area of our business that we're trying to grow in Ireland and we'd like this to be a signal to other financial institutions that this form of lending from the EIB is available."
Mr McDowell said about 0.20pc would be knocked off the borrowers' cost of funding as a result of the EIB finance.