InvestEU: EIF and Banco Santander sign guarantee agreement to support small businesses with up to €280 million in new financing

• EIF gives a €200 million guarantee to Santander to support innovation and green transition by small and medium-sized enterprises (SMEs) and small mid-caps based in Spain and other EU countries.
• This agreement was made possible with the support of the InvestEU programme.

The European Investment Fund (EIF) and Banco Santander are stepping up their support for small and medium enterprises (SMEs) and small mid-caps with an InvestEU portfolio guarantee agreement for €200 million. These guarantees under the agreement will enable Banco Santander to provide €280 million in new financing to help firms to reach their full potential. The credit line is linked to specific financing products provided by the InvestEU Fund covering two areas: Sustainability, and Innovation and Digitalisation.

The InvestEU Sustainability guarantee is worth up to €135 million. The EIF and Banco Santander will increase their support for the green transition with this backing, helping beneficiaries to make green, sustainable, and environmentally friendly investments.

The InvestEU Innovation and Digitalisation guarantee is worth up to €65 million. It will allow Banco Santander to further support the growth of Spanish and other European firms working in research and development, and to enhance their access to finance. This initiative will also promote the adoption of new digital technologies among companies of this size.

“Banco Santander is a longstanding partner of the EIF and we are delighted to continue our efforts to help European SMEs navigate the green and digital transition,” highlighted EIF Chief Executive Marjut Falkstedt. “This agreement, made possible by the InvestEU programme, will make financing more accessible for companies that are investing in innovation, digitalisation and sustainable projects, which are among the key drivers for economic development, growth and employment.”

Commissioner for the Economy, Paolo Gentiloni, said: “Small and medium-sized enterprises have long been a key source of growth in Europe. I am delighted that InvestEU is making a substantial impact in this context. This agreement will not only help these businesses create jobs but also enable them to play a crucial role in contributing to a more sustainable, innovative, and digital economy. It will unleash the full potential of businesses in Spain for green growth and employment.”

Banco Santander will primarily deploy the InvestEU guarantee products through its Smart Fund and Santander CIB Structured Finance divisions, providing flexible financing terms to support high-growth SMEs in innovative sectors like digitalisation and sustainability — covering e-commerce, energy tech, renewable energy, energy efficiency, sustainable agriculture, and circular economy. 

Background information

About the European Investment Fund (EIF)

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (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, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About Banco Santander

Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in the Europe, North America and South America regions, and is one of the largest banks in the world by market capitalization. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first quarter of 2023, Banco Santander had €1.2 trillion in total funds, 161 million customers, 9,000 branches and 210,000 employees.

Press contacts:

EIF:

Maite Cordero, m.corderomunoz@eib.org, tel. +34 606668262
José Vicente Alzola, j.alzola@ext.eib.org, tel. +34 608143903
Website: www.eif.org — Press Office: +352 4379 21000 — press@eib.org
Follow us on Twitter @eif_eu 

European Commission:

Flora Matthaes, tel.: +32 229 83951, flora.matthaes@ec.europa.eu
https://investeu.europa.eu, #InvestEU

Banco Santander:

Comunicación Corporativa, comunicacion@gruposantander.com  tel.: +34 91 2895211
www.santander.com Twitter: @bancosantander