The European Investment Bank (EIB) has provided €200 million in financing to DLL, a global asset finance company for equipment and technology, and wholly owned subsidiary of Rabobank, to support small and medium-sized enterprises (SMEs) and contribute to a greener economy. As part of the agreement, DLL will provide a further €200 million, meaning that €400 million in total will be made available to SMEs in Spain and Italy. These two countries have seen their economies deeply impacted by the COVID-19 public health crisis and local businesses should benefit greatly from this programme.
This EIB financing will strengthen DLL’s capacity to support the investments of businesses, especially in the transport, machinery and bio-economy sectors. DLL will leverage this facility to increase its support of sustainability investments for Spanish and Italian SMEs. DLL will specifically increase its financing for projects focused on the transition to a low carbon- economy, which is a major goal of the EIB Group activity. These projects include the installation of solar panels, replacement of self-propelled agricultural tractors and substitution of diesel-fuelled forklifts with electric equipment.
Furthermore, the programme will promote leasing as an alternative financing solution to standard bank loans. This type of financing is particularly beneficial to SMEs, which typically have limited capital and have difficulty providing sufficient collateral to secure loan financing, especially during difficult times. The companies accessing this credit line will be able to receive financing with competitive maturity and interest rate terms.
This will be the third transaction the EIB has contracted with DLL, and the first one between both entities with a specific sustainability component for Spain and Italy. Spanish companies will have access to 65% of this facility, while Italian businesses will have access to 35%.
EIB Vice-President Emma Navarro, responsible for EIB operations in Spain and for the Bank’s climate action, stated: “Supporting SMEs is one of the EIB Group top priorities, specially in a difficult context such as the one we are in today, when these small businesses are among the hardest hit by the Covid-19 pandemic. Hence, the importance of signing this agreement to provide funding to SMEs in Spain and Italy. 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”.
Luca Nuvolin, General Manager Italy and Head of Region South at DLL, concludes: “Many of our customers are going through difficult times and dealing with commercial uncertainty. DLL has a proud history of partnership and we have always stood with our customers, supporting them through good and bad times. 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.”