- €820m of loans increases access to financing for Portuguese SMEs and mid-caps across the country, including less developed regions
- The operation is expected to support over 3,000 SMEs and mid-caps
The European Investment Bank (EIB) and Santander Portugal will support SMEs and mid-caps in Portugal with €820m.
EIB Vice-President, Ricardo Mourinho Félix, the Deputy CEO of Santander Portugal, Manuel Preto, and the Executive Board Member of Santander Portugal, Amílcar Lourenço, signed the agreement today in Lisbon.
This agreement will provide more loans to these companies, especially those operating in less developed regions, supporting over 3,000 SMEs and mid-caps.
The EIB funds will be made available to Santander via a true-sale ABS structure (backed by a portfolio of consumer finance loans).
Speaking at the signature ceremony in Lisbon, EIB Vice-President, Ricardo Mourinho Félix, said: “SMEs and mid-caps are the drivers of innovation and sustainable growth both in Portugal and across Europe. I am pleased that the new lending operation signed in Lisbon today with Santander will increase finance to Portuguese companies. SMEs and mid-caps account for the majority of total employment in Portugal. The new collaboration between Santander Portugal and the EIB will contribute to fostering long-term growth and support jobs in Portugal.”
Amílcar Lourenço, Executive Board Member of Santander Portugal, stresses the importance of this operation at a time when Portuguese companies are facing enormous challenges, in view of the current economic context: "At Santander, we have traced a path side by side with our customers and this involves providing them support mechanisms that help them develop their businesses and become more competitive. And this is an important step towards generating more wealth, employment and contributing for the recovery and growth of the national economy".
The agreement increases financing available to SMEs and mid-caps while the overall economy is recovering from the negative impact of the COVID-19 pandemic and the current macroeconomic shocks due to the Ukrainian war and high energy costs, as well as inflation that continues to put the Portuguese companies under stress.
Santander Portugal is a benchmark bank in the Portuguese financial sector. The Bank's mission is to help people and companies prosper, aiming to be the best digital, open financial-services platform, acting responsibly and conquering the permanent trust of employees, clients, shareholders, and society. Santander is the largest private bank both in results and credit stock, and ranks in the top position both in capital, CET1 at 21.4% (as of June), and profitability (RoTE of 10.5%). Solid balance sheet reflected in strong asset quality (NPE of 2.2%) and low cost of risk of (1bp). The Bank is adapting its operation to the new client’s needs, investing in processes, digitalization and technology, to deliver the best service experience materialized in the expansion if it’s loyal customer base.
