BANCA MARCH EGF ENHANCED SUPPLY CHAIN SUPPORT

Promoteur – Intermédiaire Financier

BANCA MARCH SA

Lieu

• Espagne

Description

Reverse factoring operation under the European Guarantee Fund (EGF) of trade payables of Spanish corporates and mid-caps, improving access to finance of their (mainly small and medium-sized enterprise (SME)) suppliers.

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 in the contributing Member States 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 SMEs and midcaps due to information asymmetries and higher screening costs for smaller investments, which has been exacerbated due to the impact of COVID19. Liquidity needs are urgent and have become a matter of survival for millions of entities throughout Europe, which had been viable until the COVID-19 outbreak but are facing financial difficulties as a result of the current economic crisis. The need for policy support towards liquidity and credit/ guarantees will persists far beyond the immediate lockdown period, before entities can refocus their business and resume investment. Linked Risk Sharing operations undertaken by the EIB Group and supported by the EGF are not only compatible with the measures of the ECB, EC and national regulators (via amendment of the Capital Regulations Requirements), they are also uniquely coupled to the provision of new eligible financing to target beneficiaries. 

Objectifs

The operation will allow an increase in the reverse factoring volumes available for suppliers. This will allow for improved cash conversion for these suppliers.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 140 million

Coût total (montant approximatif)

EUR 3136 million

Aspects environnementaux

In accordance with the Bank's policy to ensure that projects in sub-operations comply with the Acquis, in particular in the fields of environment and public procurement, the financial intermediaries shall provide in their reverse factoring agreements with the buyers that sub-projects undertaken by the latter shall comply with the relevant applicable EU and national legislation.

Passation des marchés

In accordance with the Bank's policy to ensure that projects in sub-operations comply with the Acquis, in particular in the fields of environment and public procurement, the financial intermediaries shall provide in their reverse factoring agreements with the buyers that sub-projects undertaken by the latter shall comply with the relevant applicable EU and national legislation.

Statut

Signé - 23/12/2021