- EIB guarantee to Santander will enable up to €400 million in new credit to be provided to Portuguese mid-caps, making it easier for them to access finance.
- The new loans are also expected to benefit companies operating in less developed regions of Portugal.
Santander Portugal and the European Investment Bank (EIB) have signed a guarantee agreement to make it easier for Portuguese mid-cap companies to access finance against a backdrop of high interest rates and tighter liquidity conditions. The EIB guarantee agreement will enable Santander to build a portfolio of new loans of up to €400 million with better credit conditions.
The EIB will provide a 50% guarantee to Santander, which in turn will generate new lending of up to €400 million. The transaction is expected to benefit the Portuguese economy by mobilising new investments worth up to €560 million.
The signing ceremony in Lisbon today was attended by EIB Vice-President Ricardo Mourinho Félix and Executive Board Members of Santander Portugal Amílcar Lourenço and Isabel Guerreiro, who stressed the importance of this investment in financing mid-cap companies throughout the country, including in less developed regions.
“In an economic landscape fraught with uncertainties — from supply chain disruptions to high inflation — the financial demands on businesses are increasingly pressing,” said Mourinho Félix. “This joint initiative aims to alleviate some of these challenges, thereby contributing to sustained economic growth and job stability across Portugal.”
Amílcar Lourenço underlined the importance of these loans to promoting the growth of companies across the country: “At Santander, we have a permanent commitment to companies: to always look for better conditions to provide them with the resources they need to grow, be successful and make our economy prosper. This agreement with the EIB is further proof that we want to be by our companies' side, promoting investment, job creation and wealth throughout the country.”
Banco Santander is one of the EIB's most active counterparts, combining traditional financing operations, specific credit lines and risk-sharing operations for corporate portfolios and project finance, in countries such as Portugal, Spain and Poland.
Background information
About the EIB
The European Investment Bank Group (EIB Group) — comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) — recorded another year of excellent results in Portugal, with €1.7 billion of new financing signed in 2022.
About Santander
Santander Portugal is a leading bank in the Portuguese financial sector. The bank's mission is to help people and companies prosper, aiming to be the best digital, open financial-services platform, acting responsibly and earning the permanent trust of employees, clients, shareholders and society. Santander is the largest private bank both in profitability and outstanding loan portfolio. Its solid balance sheet is reflected in its strong capital ratio (CET1 at 17.6% as of June 2023, above the SREP requirement of 8.3%), sound asset quality (NPE ratio of 2.1%) and low cost of risk. The bank is adapting its operations to new clients’ needs, investing in processes, digitalisation and technology to deliver the best service experience leading to the expansion if its loyal customer base.