EIB and Banco Sabadell join forces to support SMEs affected by COVID in Spain

The agreement includes a commitment to direct part of the new Banco Sabadell financing to investments promoting climate action, which is key to a green recovery following the pandemic.

The European Investment Bank (EIB) Group is joining forces with Banco Sabadell to support small and medium-sized enterprises (SMEs) – the businesses most affected by the economic impact of COVID-19. With this goal in mind, the EIB Group – via the European Investment Fund (EIF), its subsidiary specialising in venture capital for SMEs – has granted Banco Sabadell a €96 million guarantee for a loan securitisation portfolio, which will enable the Spanish bank to increase its lending capacity to offer €576 million in financing for the projects of Spanish companies, primarily the self-employed, SMEs and mid-caps.

The agreement includes a commitment to direct part of the new Banco Sabadell financing to investments promoting climate action, which is key to a green recovery following the pandemic. In concrete terms, the financing will go to projects focusing on improving companies' energy efficiency, driving renewable energies, refurbishing commercial buildings to reduce energy use and investments for purchasing low-emission commercial vehicles and agricultural equipment with low fuel consumption and a major environmentally friendly element.

The agreement was signed under the Investment Plan for Europe. Its support enables the EIB Group to expand its capacity to finance investment projects that have a higher risk profile owing to their structure or nature. Estimates indicate that this operation will make it possible to support over 1 400 companies employing around 79 000 people. Unicredit has provided advisory services for this financing transaction.

EIB Vice-President Emma Navarro, who is responsible for the EU bank's operations in Spain, stated: "Supporting SMEs and promoting green investments are both key elements of the EIB Group's response to driving the economic recovery following the coronavirus. This is why we are delighted to sign this new agreement with Sabadell, which will enable us to pass the advantages of our financing on to Spanish small and medium-sized enterprises at an extraordinarily difficult time while also fostering the development of clean projects contributing to the transition towards a low-carbon economy."

European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis highlighted the following: "The European Commission and the European Investment Bank Group are working together to support the economic recovery following the coronavirus crisis. The more we protect businesses and jobs now, the faster the rebound will be. In addition, to support for SMEs, I am pleased to see that part of the financing will go to green projects such as renewable energy and the retrofitting of commercial buildings to reduce their energy use. The European Green Deal must be at the heart of our recovery strategy."

General Manager of Sabadell Spain Carlos Ventura welcomed the agreement: "The time has come for companies to regain the momentum lost after the economic shutdown and make a real commitment to a sustainable economy, making this agreement with the EIB a very important tool for the recovery process. We are very happy to have a long-standing partnership with this institution, as it benefits the economy of our country." Ventura also highlighted the diverse beneficiaries of these credit lines: "We are providing liquidity to sectors as diverse as agriculture, commercial vehicles and new, innovative companies."