Spain: EIB and Extremadura regional government sign €90 million loan to co-finance agriculture projects in the region

This article is published in association with European Investment Bank.

• The EIB loan will enable the Extremadura regional government to co-finance projects to strengthen competitiveness and sustainability in the Spanish region’s agricultural sector.
• The loan is being financed under the European Agricultural Fund for Rural Development’s 2023-2027 programme to foster a competitive, resilient and diversified agricultural sector in the European Union.
• The agreement stands out for promoting cohesion, climate action and environmental sustainability, and for supporting agriculture and the bioeconomy, all of which are EIB Group strategic priorities. 

The European Investment Bank (EIB) has signed a €90 million loan with the Extremadura regional government (the Junta de Extremadura) to co-finance agriculture projects in the Spanish region. The EIB loan and Junta de Extremadura co-financing will back projects contributing to competitiveness and sustainability in Extremadura’s agricultural sector.

The agreement will facilitate investment in basic rural infrastructure, natural disaster prevention and recovery measures, and the protection and sustainable use of natural resources. The investment is expected to enable the use of more energy-efficient farming machinery and equipment, soil and water conservation, climate change mitigation and adaptation, better protection of forest ecosystems, and knowledge sharing on agricultural best practices.

The agreement highlights the commitment of the European Investment Bank Group (EIB Group) to economic, social and territorial cohesion, which, together with climate action and environmental sustainability and bioeconomy and agriculture, are among the strategic priorities set out in the Group’s strategic roadmap for 2024-2027. All the projects will be implemented in Extremadura (Spain), which is considered to be a cohesion region by the European Union.

This agreement comes in addition to others made by the EIB and the Junta de Extremadura to co-finance projects under European regional development funds, with the most recent, €225 million agreement signed in 2023 under the European Regional Development Fund (ERDF) and the European Social Fund Plus (ESF+).

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, it finances investments that pursue EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability. 

In Spain, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects in 2024, contributing to the country’s green and digital transition, economic growth, competitiveness and better services for its people.

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