The recent investment by the European Investment Fund (EIF), backed by InvestEU, marks a pivotal moment for the HeavyFinance community, injecting a 20 million euro anchor investment into our 50 million euro fundraising initiative. This development offers HeavyFinance investors unique insights and benefits, emphasising the value and trust placed in our platform by a prestigious institution like the EIF.
Here’s a closer look at the implications for our investors and the positive ripple effects of this partnership.
What will it look like?
The EIF’s investment mirrors the commitment seen from private and retail investors, ensuring a cohesive investment strategy across the board. By co-investing in the diverse portfolio of agricultural loans available on HeavyFinance, you’ll gain the advantage of sharing investment space with the EIF, enhancing the robustness and credibility of your investments.
Key advantage for investors
Investing alongside an entity such as the EIF comes with some benefits. Prior to their 20 million euro commitment, the EIF conducted all the necessary analysis to ensure investment in HeavyFinance projects aligns with their requirements. This ranged from our risk assessment procedures and recovery procedure to our legal framework.
Maintaining investment continuity
Despite potential concerns regarding cash drag due to the influx of funds, the agricultural sector’s ongoing financial needs assure a steady flow of viable investment projects. The persistent and growing financial gap in agriculture, escalating from 46 billion euros in 2017 to 62 billion euros in 2022, underscores the critical need for financing.
It is vital to underscore the vibrancy and potential of the agricultural sector, especially in key markets like Lithuania and Poland, where the financing gap to Gross Value Added (GVA) ratio is notably high. This not only highlights the sector’s financial needs but also assures our investors of the continuous availability of meaningful investment opportunities.
This strategic partnership with the EIF, fortified by InvestEU, represents a significant milestone for HeavyFinance and our investor community. It reaffirms our commitment to supporting sustainable agriculture, bridging financial gaps, and fostering a greener future, all while offering our investors a platform for impactful and secure investments.
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