ELKARGI EGF SMALL MIDCAP SUPPORT

Promoter – Financial Intermediary

ELKARGI SGR

Location

• Spain

Description

Operation under the European Guarantee Fund (EGF) to support Spanish companies affected by the COVID-19 pandemic.

Additionality and Impact

Linked risk-sharing instrument under the Pan-European Guarantee Fund (EGF) in the EGF participating EU Member States, providing support to entities affected by the COVID-19 pandemic, to foster access to liquidity and economic recovery. The operation addresses the underlying market failure in access to finance faced by small Midcaps owing to information asymmetries and higher screening costs for smaller investments, which has been exacerbated due to the impact of the outbreak.

This operation will support a new class of financial intermediary (i.e. a mutual guarantee company), while expanding its reach to small Midcaps, currently not covered by the facilities available to mutual guarantee companies in the Spanish market.

Objectives

The operation aims to mobilise funding resources to respond to the economic impact of the COVID-19 outbreak. The proposed transaction will contribute to ensuring that eligible entities, notably small mid-caps, can obtain sufficient liquidity and financing needed to weather the ongoing crisis, and are thus able to continue their development in the medium to long-term.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 75 million

Total cost (Approximate amount)

EUR 140 million

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 28/07/2021