The European Investment Bank (EIB) has financed EUR 200 million to DLL, a global asset finance company for equipment and technology, and wholly owned subsidiary of Rabobank, to support small and medium-size enterprises (SMEs) and contribute to a greener economy. As part of the agreement, DLL will provide a further EUR 200 million, meaning that in total EUR 400 million will be made available to SMEs in Spain and Italy. These are two countries that have seen their economies deeply impacted by the Covid-19 public health crisis and local businesses should benefit greatly from this program.
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. These projects include installation of solar panels, replacement of self-propelled agricultural tractors and substitution of diesel-fuelled forklifts with electric equipment.
Furthermore, the program will promote leasing as an alternative financing solution to standard bank loans. This type of financing is particularly beneficial to SMEs, who typically have limited capital and are challenged to provide sufficient collateral to secure loan financing, especially during difficult times. The companies accessing this credit line will be able to receive a financing with competitive maturity and interest rate terms.