Malta-based Multitude Bank has partnered with a leading global climate technology company to invest €14 million in loans for small and medium-sized farms across Europe.

In a statement earlier this week, the bank said it aims to help these farms adopt more sustainable farming practices and reduce their environmental impact.

The investment will be secured through a unique €10.5 million guarantee from the European Investment Fund (EIF), which will reduce the risk for investors.

These funds will be distributed to over 500 farms across Europe, helping them implement greener and more sustainable practices.

Located in Gżira, Multitude Bank offers digital lending and banking services to consumers, small businesses, and other fintech companies. It forms part of the listed fintech company Multitude Group.

For this project, Multitude Bank has partnered with Lithuanian agritech experts HeavyFinance.

Alain Nydegger, CEO of Wholesale Banking at Multitude, said, “This partnership with HeavyFinance shows our commitment to providing financial solutions that not only make business sense but also help fight climate change. We want to prove that sustainability and profitability can go hand-in-hand.”

The loans will start being distributed in December 2024, and the full €14 million will be invested by the end of 2025.

Laimonas Noreika, CEO of HeavyFinance, added, “Farmers play a crucial role in fighting climate change, but they often lack the funds to adopt sustainable practices. With this partnership, we can provide them with the financial support they need to move towards regenerative farming, which helps store carbon in the soil and improves its health.”

Antti Kumpulainen, CEO of Multitude Bank, said, “We’re proud to support HeavyFinance in its mission to reduce CO2 emissions. This partnership not only helps farmers but also raises awareness about the importance of sustainable farming and environmental responsibility.”

Growth of Multitude’s Wholesale Banking division

Multitude’s Wholesale Banking division has grown rapidly in 2024. Since becoming an independent unit in January, it has expanded its portfolio by 179 per cent, growing from €40.5 million to €112.9 million by Q3 2024.

The division now operates in seven European countries, serving clients like fintech companies, small businesses, and payment institutions.