News & Analysis

Inoks Capital gets €40m EIF commitment

The European Investment Fund has anchored the Article 9 impact fund, which will provide senior debt to agricultural businesses using sustainable practices.

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Private credit provider Inoks Capital’s agricultural transition fund has received a €40 million anchor investment from the European Investment Fund.

European Agri Transition Fund seeks to finance the continent’s small businesses and mid-caps in the farm and food sectors, particularly in Eastern Europe.

Switzerland-based Inoks Capital has a target size of between €150 million and €300 million and plans to hold a first close this year, according to a statement. The firm did not disclose how much capital the vehicle has taken to date.

The vehicle is an Article 9 impact fund and will primarily offer senior debt through short and long-term investments secured by real asset collateral.

It aims to enhance sustainable production and consumption, particularly in eastern and southern EU countries including Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Italy, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Spain.

“We believe that sustainable food and agriculture are critical to the future of our planet, and we are proud to have the support of the EIF in this vision,” said Inoks Capital chief executive and co-chief investment officer Nabil Marc Abdul-Massih.

“This partnership will help us to strengthen the EU food system’s resilience, reduce its environmental and climate footprint and provide customised access to capital for smaller corporates that are today’s innovators.”

EIF chief executive Marjut Falkstedt added: “Sustainable adaptation strategies require funding, and our role is to partner with market players like Inoks Capital to help finance this change. Our investment in this fund will incentivise and enable more climate change friendly agricultural practices across a number of countries.”

The EIF’s commitment is part of the InvestEU programme, which aims to mobilise more than €372 billion in investment between 2021 and 2027 to support the green transition.

  • Further reading: EIF’s climate transition head Matteo Squilloni recently told New Private Markets about the institution’s plan to invest in sustainable food and beverage strategies. Read the interview here.