EIB Group invests €395M in new asset-backed securities issue by Banco Sabadell

This initiative aligns with the European Union’s goals for economic recovery, sustainability, and the green transition, showcasing a collaborative approach to tackling regional challenges while driving global progress.

The European Investment Bank (EIB) Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has invested €395 million in a new asset-backed securities issue by Banco Sabadell. This funding is set to catalyze over €860 million in financing for Spanish small and medium-sized enterprises (SMEs) and mid-caps, enhancing their resilience and competitiveness while fostering sustainable development. Key Investment Details:

EIB Contribution: €350 million.

EIF Contribution: €45.2 million, featuring a dedicated green loan component.

Banco Sabadell Commitment: More than double the EIB Group investment in loans to SMEs and mid-caps.

A substantial portion of this funding—up to €200 million—will directly benefit SMEs and mid-caps impacted by the devastating floods in Spain. The EIF's involvement also includes creating a green loan portfolio exceeding €45 million, supporting environmentally sustainable projects.

Strengthening Resilience and Green Transition

The operation aims to meet the working capital and liquidity needs of SMEs and mid-caps, while also facilitating investments in:

• Flood Recovery: Helping businesses recover and rebuild after extreme weather events in Spain, particularly in Valencia and surrounding regions.
• Green and Digital Transition: Supporting initiatives that improve energy efficiency, promote digitalization, and enhance sustainability.
• Public Sector Irrigation Projects: Financing the modernization and digitalization of irrigation infrastructure to optimize water use and energy efficiency.

Statements from Leaders

Jean-Christophe Laloux, EIB Director General, emphasized the importance of the operation:

“This new securitisation operation enables us to provide Spanish SMEs and mid-caps with tailored credit solutions, helping them recover from recent floods while supporting their competitiveness, green investments, and long-term resilience.”

Marjut Falkstedt, Chief Executive of the EIF, highlighted the green impact:

“This investment reflects our ongoing commitment to support Spanish SMEs and mid-caps, enabling economic growth, job creation, and a transition toward sustainable practices.”

Eduardo Currás, Banco Sabadell’s Head of Corporate Banking, reiterated the bank’s dedication to SMEs:

“This agreement underscores our commitment to Spanish businesses. We extend our solidarity to those affected by recent extreme weather and remain confident in collective recovery efforts through innovative financing solutions.”

A Commitment to Sustainable Economic Growth

This securitisation transaction represents a significant step in addressing critical challenges faced by Spanish SMEs, including climate resilience, liquidity needs, and the transition to a green economy. The EIB Group's partnership with Banco Sabadell reinforces the importance of aligning economic recovery with environmental sustainability and community resilience.

This initiative aligns with the European Union’s goals for economic recovery, sustainability, and the green transition, showcasing a collaborative approach to tackling regional challenges while driving global progress.