- The EIB Group has invested €395 million in an asset-backed securities issue originated by Sabadell.
- Over half of this investment – up to €200 million – will go to mobilising finance for companies affected by the recent floods in Spain.
- The EIB Group´s total investment will enable Sabadell to allocate up to 860 million to make it easier for small businesses and mid-caps in Spain to access finance.
The EIB Group – comprising the European Investment Bank (EIB) and European Investment Fund (EIF) – has invested €395 million in various tranches into a new asset-backed securities issue originated by Sabadell. The EIB will contribute €350 million to the operation, while the EIF will provide €45.2 million.
Banco Sabadell has in turn committed to financing new projects from small and medium-sized enterprises (SMEs) and mid-caps totalling more than twice the amount guaranteed by the EIB Group, potentially channelling around €860 million in loans into the economy.
A large share of the EIB Group’s €395 million investment in this securitisation transaction – up to €200 million – will go to mobilising new financing for SMEs and mid-caps affected by the recent floods in Spain. The EIF investment also features a green component under which Banco Sabadell will put together a portfolio of green loans totalling over €45 million.
The goal of the operation is to offer solutions to cover the working capital and liquidity needs of Spanish SMEs and mid-caps, and to facilitate their access to the investment required to bolster their competitiveness, finance the green and digital transition and, where appropriate, recovery from floods.
“The EIB Group is pleased to participate in this new Sabadell securitisation operation, in which over half of the Group’s investment will go to mobilising finance for SMEs and mid-caps affected by the recent tragic floods in Spain,” said EIB Director General and Head of EU Lending and Advisory Jean-Christophe Laloux. “This operation means we can continue to provide Spanish SMEs and mid-caps with credit solutions tailored to their needs and enabling them to make the investment necessary to contribute to their resilience and competitiveness.”
The EIB funds will back investment in the projects of small and medium-sized enterprises and may also be used by Sabadell to finance projects in public sector status irrigation communities in Spain, with funds going to the refurbishment, modernisation and improvement of existing infrastructure for better efficiency in water use, digitalisation and energy.
“This new investment is part of the EIF’s ongoing expansion of its support for Spanish SMEs and mid-caps, a key sector for economic competitiveness and job creation in the country,” said EIF Chief Executive Marjut Falkstedt.
Banco Sabadell Head of Corporate Banking Eduardo Currás stressed that “this new agreement once again shows our strong commitment to SMEs and Spanish businesses, which we want to continue supporting with an expertise and trust-based relationship.” He expressed his solidarity with all those affected by the extreme weather in Valencia and other regions of Spain and said he was confident that “reconstruction will take place as soon as possible thanks to all the initiatives being launched and the mutual support of everyone concerned.”
Background information
About the EIB Group
The EIB Group, consisting of the EIB and the 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.
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.
The central mission of the European Investment Fund (EIF) is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.
About Banco Sabadell
With a history spanning 140 years, Banco Sabadell heads the fourth largest private Spanish banking group. Its total assets currently exceed €248 billion and it is trusted by over 11.6 million customers, with whom it builds long-lasting relationships. The group has a solid franchise in Spain and occupies a clear leadership position in the business banking segment. It continues to progress with the transformation of its retail business towards a digital banking model.
Since its inception, Banco Sabadell has tried to help people and companies make their projects become a reality, anticipating their needs and taking care to ensure they make the best economic decisions. It does this through responsible management and a steadfast commitment to the environment and to society.