- The agreement seeks to promote private sector investment and support the financing needs of a key segment of the Spanish economy in terms of growth, competitiveness and job creation.
The European Investment Bank (EIB) and Banca March have signed a new agreement under which Banca March will provide up to €300 million of additional financing to Spanish companies with 250 to 3 000 employees. The EIB will offer an institutional guarantee covering 50% of the total amount.
The goal of this agreement is to promote and accelerate private sector investment and offer working capital and liquidity solutions to Spanish mid-caps – many of which are family businesses, the strategic focus area of Banca March – making it easier for them to access finance with attractive terms in a high-interest rate environment.
At least 35% of investments are expected to be made in regions with a per capita income below the EU average, helping to improve competitiveness and cohesion between regions, which is among the EIB Group's strategic priorities.
“The EIB is once again joining forces with Banca March to take another step forward in developing attractive lending solutions tailored to the needs of Spanish mid-caps,” said EIB Director of Financial Institutions Gemma Feliciani. “This agreement is yet another example of cooperation between the public and private sectors to boost the competitiveness of a key business segment for economic growth and job creation in Spain.”
The agreement is part of the EIB’s efforts to finance small and medium companies (SMEs) and mid-caps and Banca March’s commitment to provide its financing capacity, all of which is in line with EU priorities and the goal of both institutions to help improve industrial competitiveness in the European Union.
Banca March CEO José Luis Acea added: “As a bank specialising in advising businesses, business-owning families and family businesses, this agreement reflects our ongoing commitment to make it easier for Spanish companies to access finance from top-tier European institutions, enabling them to play their role as key motors of economic and social development in their domains.”
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.
Banca March
Banca March is one of Spain’s leading specialised private and corporate banking institutions. It is also the only bank to be fully family-owned since it was founded in 1926. In line with its prudent and long-term management philosophy, Banca March's business model is supported by strong financial and capital ratios. It maintains the highest CET 1 solvency ratio in the Spanish banking sector (20.93%), one of the lowest default rates in the sector in Spain (1.81% as of June 2024, compared to 3.43% on average in the sector) and liquidity ratios – liquidity coverage ratio (287.8%) and direct taxation liability (182.4%) – and coverage of non-performing risks (51.89%) among the highest in the sector. The strength of Banca March’s value proposition has been supported by the Moody’s rating agency, which has raised Banca March’s long-term rating to A2 with a positive outlook, meaning it remains one of the best-rated entities in the Spanish financial system, ahead of the government itself (which currently has a Baa1 rating). Banca March is one of the main shareholders of Corporación Financiera Alba, with major stakes in Naturgy (indirect), Acerinox, Profand, Ebro Foods, BME, Viscofan, Atlantic and Parques Reunidos, among others.