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Signature(s)

Amount
€ 410,000,000
Countries
Sector(s)
Portugal : € 410,000,000
Credit lines : € 410,000,000
Signature date(s)
28/09/2022 : € 25,000,000
28/09/2022 : € 40,000,000
28/09/2022 : € 345,000,000
Link to source
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Summary sheet

Release date
4 October 2022
Status
Reference
Signed | 28/09/2022
20190140
Project name
Promoter - financial intermediary
BST FOCUSED SUPPORT FOR SMES & MIDCAPS
BANCO SANTANDER TOTTA SA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 410 million
not applicable
Location
Sector(s)
Description
Objectives

The project concerns a multi-beneficiary intermediated loan (MBIL) to provide additional loans to small and medium sized enterprises (SMES) and MidCaps in Portugal. In detail, the financial operation consists in purchasing investment grade tranches of a true sale securitistion of consumer loans.

The loan will be used for the financing of small and medium-sized investment projects in eligible industry and services sectors. A minimum 70% of the loan will be used to finance SMEs.

Additionality and Impact

Given the current market conditions, the proposed operation would most likely not take place without EIB's participation, preventing the Portuguese economy from benefiting from new lending (through the New Portfolio).

By transferring the credit risk of the securitised portfolio, the proposed operation would reduce the risk-weighted assets of the Promoter. The capital relief provided would increase the Promoter's credit capacity and allow for the origination of new loans to Final Beneficiaries. Such additional lending is expected to enhance access to finance for Portuguese SMEs and Mid-caps at improved terms. The proposed operation addresses the market failure related to SMEs' and Mid-caps' access to finance 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.

A significant portion of the New Portfolio is expected to be located in Cohesion Regions. The operation will thus also contribute to the European Union priorities on convergence and social cohesion, helping reduce regional disparities.

This operation will respond to the suboptimal investment situation in the securitisation market. The securitisation market has been slowly recovering from the relatively low volumes experienced during the COVID-19 crisis. Unlocking and reactivating this market through EIB participation is critical to allow banks to continue lending to SMEs and Mid-caps.

Environmental aspects
Procurement

The projects financed under this operation will need to comply with domestic and EU applicable legislation, as appropriate.

The projects financed under this operation will need to comply with domestic and EU applicable legislation, where applicable.

Milestone
Under appraisal
Approved
Signed
7 September 2022
28 September 2022
Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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