- The signed agreement worth up to €200 million is the first tranche of an EIB-approved operation of up to €300 million in total — under which Banco Sabadell will finance projects over the next two years.
- The operation will promote private sector investment and support the financing needs of a key segment of the Spanish economy in terms of both growth and jobs.
- This new partnership between the EIB and Banco Sabadell will strengthen economic, social and territorial cohesion in Spain and the European Union.
The European Investment Bank (EIB) and Banco Sabadell have signed a guarantee agreement for up to €200 million as the first tranche of a total EIB-approved operation of up to €300 million. The arrangement will allow the Spanish bank to facilitate up to €400 million in new loans over the next two years to finance projects by small and medium-sized enterprises (SMEs) and mid-caps in Spain. The amount may be increased to up to €600 million when the remaining tranche of the total EIB-approved operation is signed.
The EIB guarantee to Banco Sabadell is provided on a portfolio of existing corporate loans, creating additional financing capacity to support Spanish industry. Banco Sabadell in turn undertakes to finance new SME and mid-cap projects for twice the amount guaranteed by the EIB.
The guarantee is intended to promote and accelerate private sector investment, and to help SMEs and mid-caps meet their working capital and liquidity needs and overcome investment constraints. The investment barriers facing the sector are a result of persistent inflationary pressures and the rise in interest rates, among other issues.
It is expected that half of the investments made will be in regions classified by the European Union as less developed, where per capita income is below 75% of the EU average.
“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,” stated Jean-Christophe Laloux, Director General of Operations in the European Union at the EIB. “Strengthening economic, social and territorial cohesion in the European Union is one of the EIB’s cross-cutting objectives.”
“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 organisations such as the EIB to jointly offer the best financing conditions for our customers' business projects,” said Carlos Ventura, General Manager and Head of Business, Network and Private Banking at Banco Sabadell.
The transaction is part of the EIB’s efforts to finance SMEs and mid-caps, and is in line with EU priorities such as increasing the competitiveness of EU industry.
This agreement is another of many financing arrangements between the EIB Group and Banco Sabadell. Among them, a similar operation for the same amount stands out, signed in 2021 to support Spanish SMEs and mid-caps affected by the economic impact of the COVID-19 pandemic.
Background information
European Investment Bank
The ElB is the long-term lending institution of the European Union, owned by the 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 EIB Group, consisting of the 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.