The European Investment Fund is providing a €60 million guarantee to Sienna Investment Managers’ Sienna Biodiversity Private Credit Fund to increase financing for biodiversity projects in Europe.
The support is being provided by the European Investment Fund (EIF), which is part of the European Investment Bank (EIB) Group, and is backed by the InvestEU Sustainability Guarantee, the EIB said in a release on Thursday.
The EIF guarantee covers up to 70% of the credit risk for loans to small and medium-sized firms.
The guarantee is intended to make financing more accessible for earlier-stage biodiversity projects and projects with relatively weak collateral.
“The protection and restoration of biodiversity are no longer a niche objective; they are essential to Europe’s long-term economic growth, food security and adaptation to climate change,” EIB Vice-President Ambroise Fayolle said.
Fund target and existing commitment
The Sienna Biodiversity Private Credit Fund is classified as an “Article 9” fund under the EU’s Sustainable Finance Disclosure Regulation — a category for funds that have sustainable investment as their objective — and has a target size of €200 million, the EIB Group said.
The fund received an initial €100 million commitment last year from France-based Malakoff Humanis Group.
“The EIF’s endorsement is a significant opportunity for the Sienna Biodiversity Private Credit Fund — offering advantages in terms of risk management, deployment capacity and the ability to mobilise investors,” Sienna IM private debt Deputy CEO Fabrice Rossary said.
The EIB Group’s financing for agriculture and the bioeconomy reached €7.7 billion last year, up 22% from 2024.
