EIB and Banco Sabadell Partner to Provide €400M Loans to Spanish SMEs and Mid-Caps

The total financing capacity could increase to €600 million upon signing the remaining tranche of the EIB-approved operation.


Devdiscourse News Desk | Updated: 06-06-2024 15:54 IST | Created: 06-06-2024 15:54 IST
EIB and Banco Sabadell Partner to Provide €400M Loans to Spanish SMEs and Mid-Caps
The EIB and Banco Sabadell’s partnership represents a substantial commitment to bolstering the Spanish economy by providing essential support to SMEs and mid-caps. Image Credit:

The European Investment Bank (EIB) and Banco Sabadell have signed a significant guarantee agreement for up to €200 million as the first tranche of a total EIB-approved operation of up to €300 million. This arrangement will enable the Spanish bank to facilitate up to €400 million in new loans over the next two years, focusing on projects by small and medium-sized enterprises (SMEs) and mid-caps in Spain. The total financing capacity could increase to €600 million upon signing the remaining tranche of the EIB-approved operation.

Key Details of the Agreement

Guarantee Agreement: EIB provides a guarantee to Banco Sabadell on a portfolio of existing corporate loans.

Additional Financing Capacity: Banco Sabadell will utilize this guarantee to finance new SME and mid-cap projects for twice the amount guaranteed by the EIB.

Investment Focus: Half of the investments are expected to be in regions classified by the EU as less developed, where per capita income is below 75% of the EU average.

Objectives

Support for SMEs and Mid-Caps: The initiative aims to promote and accelerate private sector investment, helping SMEs and mid-caps to meet their working capital and liquidity needs.

Overcoming Investment Barriers: The agreement addresses challenges such as persistent inflationary pressures and rising interest rates.

Economic, Social, and Territorial Cohesion: Strengthening cohesion within the European Union is one of the EIB’s cross-cutting objectives.

Statements from EIB and Banco Sabadell

Jean-Christophe Laloux, Director General of Operations in the European Union at the EIB, expressed satisfaction with the collaboration:

“We are very happy to work again with Banco Sabadell to facilitate access to attractive lending solutions for Spain’s SMEs and mid-caps, which are of vital importance for the country’s economy. Strengthening economic, social, and territorial cohesion in the European Union is one of the EIB’s cross-cutting objectives.”

Carlos Ventura, General Manager and Head of Business, Network and Private Banking at Banco Sabadell, highlighted the importance of the agreement:

“This agreement is a further demonstration of our firm commitment to business. For this reason, Banco Sabadell has always attached great importance to working with organizations such as the EIB to jointly offer the best financing conditions for our customers' business projects.”

Historical Context

This agreement continues a history of financing arrangements between the EIB Group and Banco Sabadell. Notably, a similar operation for the same amount was signed in 2021 to support Spanish SMEs and mid-caps impacted by the economic fallout from the COVID-19 pandemic.

Conclusion

The EIB and Banco Sabadell’s partnership represents a substantial commitment to bolstering the Spanish economy by providing essential support to SMEs and mid-caps. This agreement not only addresses immediate financial needs but also promotes long-term economic growth and stability in less developed regions of Spain.

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