The Lithuanian fintech company, HeavyFinance is raising €50 million for its private credit fund to invest in small and medium-sized agricultural businesses in five European countries, Bulgaria, Latvia, Lithuania, Poland, and Portugal, to encourage on-farm decarbonization and greener farming practices.
- Established in 2020 by Andrius Liukaitis, Darius Verseckas, and Laimonas Noreika, HeavyFinance produces authorized carbon credits for agriculture and offers farmers financial support in their transition towards more sustainable soil management practices.
- HeavyFinance has already provided more than 1,700 loans to farmers, helping them in financing their transition from traditional institutions to more sustainable agriculture.
The HeavyFinance CEO and founder, Laimonas Noreika, stated the following: "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."
Details of the fund
- The corestone investor is European Investment Fund (EIF), which has committed €20 million to the fund. The EIF commitment is supported by InvestEU program, that aims to trigger at least €372 billion for European policy goals, including green ones, by 2027.
"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 decarbonization, unlocking the potential of our land and fostering a more resilient planet.”
- The €50 million fund will support EU farmers to upgrade their equipment and expand working capital, which will help in job creation and growth. The fund aims to provide mid-term financing to support their efforts to reduce carbon footprint through greener practices.
