- The loan signed with the regional government via the Institute for Business Competitiveness of Castilla y León (ICECyL) is the first tranche of financing totalling €50 million approved by the EIB.
- The EIB support will enable ICECyL to make it easier for small businesses and mid-caps in various sectors (mainly industry and commerce) to invest.
- The agreement highlights efforts to promote economic, social and territorial cohesion, one of the EIB Group’s cross-cutting priorities.
The European Investment Bank (EIB) has signed a €25 million loan with the regional government of Castilla y León via the Institute for Business Competitiveness of Castilla y León (ICECyL by its Spanish acronym), a body under the auspices of the regional Ministry of the Economy and Finance, to back small and medium-sized enterprises (SMEs) and mid-caps in the Spanish region.
The EIB loan will enable ICECyL to finance projects from this business segment (mostly in the Castilla y León region) focusing on boosting competitiveness, promoting regional circular economy policies, and creating and safeguarding jobs.
The loan signed is the first tranche of a total of €50 million in financing for the regional government of Castilla y León approved by the EIB. The EIB funds will go towards financing SME and mid-cap projects via participating loans channelled through venture capital company ADE Capital Sodical SCR, in which ICECyL is a shareholder, or standard loans granted directly.
The EIB backing will mean that ICECyL can facilitate investments in a key business segment for economic growth in the region, focusing on various sectors but primarily industry and commerce. The loan will provide a boost to SMEs and mid-caps just as they face investment difficulties as a result of inflationary pressures and interest rate hikes, among other things.
The agreement also highlights the commitment of the EIB Group to economic, social and territorial cohesion, which is one of its cross-cutting priorities. Most of the projects will take place within the autonomous community of Castilla y León, which the European Union considers to be a transition region as its gross domestic product per capita is between 75% and 100% of the EU average.
This marks a new chapter of collaboration between the EIB and the regional government of Castilla y León via ICECyL. According to ICECyL data, the previous credit line signed between 2019 and 2023 resulted in a total of 51 companies benefiting from this financing agreement. In addition, a private investment of €310 million was mobilized and around 1 900 direct jobs were created, maintaining around 14 300 jobs.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing to 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.