The Strategic Banking Corporation of Ireland, set up two years ago to channel competitive loans to Irish businesses via funding from government the European Investment Bank and the German Bank, KFW, has linked with the asset finance company, First Citizen Finance to provide a €50m fund for Irish agri-business SMEs to buy or lease machinery such as combine harvesters and tractors at discounted rates for terms of up to seven years.

The new fund means the Strategic Banking Corporation has now committed 99% of its original €800m in funding through six different lending partners including three large retail banks, Bank of Ireland, AIB and Ulster Bank.

It’s expected to assemble a second fund over the coming months.

In October of last year, an additional €50m was added to the fund.

There is no upper or lower limit on the loans and Finance Ireland will made them available at a 1.9% discount to current rates, which are understood to average about 8%.