EIF and Santander sign InvestEU-backed agreement to guarantee up to €250 million in loans for companies in Portugal

    Date: 07 March 2023
  • The EIF is providing a guarantee to Santander to support sustainable investments, as well as companies active in the education and culture and creative sectors.
  • The agreement is backed by the European Union´s InvestEU programme.

The European Investment Fund (EIF) and Santander Portugal have signed a guarantee agreement  supported by InvestEU for up to €250 million in loans. The targeted financing will benefit Portuguese businesses in the areas of sustainability, education, culture and creative sectors.

The InvestEU programme leverages an EU budget guarantee to mobilise public and private investments for EU policy priorities. EIF guarantee products under InvestEU signed with Santander include the Sustainability Guarantee, the Skills and Education Guarantee and the Cultural and Creative Sectors Guarantee.

The EIF Sustainability Guarantee aims to support projects that contribute to climate change mitigation and adaptation and to a more sustainable, circular and carbon-neutral economy. Several types of eligible investments are included: companies classified as "sustainable"; renewable energy, sustainable buildings, improving industry energy efficiency, and zero or low CO2 emission mobility; sustainable investment in agriculture and forestry; and social accessibility.

The EIF's Skills and Education Guarantee has been set up to finance educational, training and re-qualification projects, in order to attract and qualify more people for the labor market, thereby responding to the specific needs of the country and the economy in general.

Finally, the EIF’s Cultural and Creative Sectors Guarantee aims to support companies that invest in these areas (such as restoration, libraries, press, architecture, performing arts, audiovisuals, among others), with the dual purpose of contributing, on the one hand, to the preservation of the country's cultural identity and diversity and, on the other, to the development of sectors with a high human capital component.

The loans to be originated under the guarantee will benefit from a 70% guarantee from the EIF and will have a maximum maturity of 12 years. The maximum amounts of financing vary according to the guarantee product and, in the case of the Sustainability Guarantee, may reach €15 million.

Santander Portugal’s Board member, Amilcar Lourenço, points out that "the bank's mission is to support Portuguese companies, providing them with the necessary funds to develop their businesses. Through these Lines, we are looking to the future, to sectors that generate value for the country, creating the conditions for them to best adapt to new challenges".

EIF Chief Executive, Marjut Falkstedt said: “InvestEU offers opportunities for businesses across a wide range of different sectors all over Europe to access finance. This agreement is one of our first under the InvestEU programme in Portugal with a long-standing partner bank here – Santander Totta. Together we can help companies to finance their investment projects and realise their growth ambitions, whether they are active in the areas of skills and education, or culture and creativity, or even if they are seeking to improve their sustainability, as we all navigate the green transition together”.

Commissioner for the Economy Paolo Gentiloni said: “Thanks to this significant agreement, InvestEU will help businesses in Portugal to unlock up to a quarter of a billion euros in funding. This financing will support multiple aspects of the green transition, develop skills and boost the creative and cultural sectors. This is great news for Portuguese firms and workers as they navigate the current challenging economic conditions.”

Santander has extensive experience in placing credit lines guaranteed by the EIF on the Portuguese market, providing small businesses with the necessary financing to grow and become more competitive.

All information on these Lines is available on the Bank’s website –  santander.pt/empresas/financiamento/linhas-especiais-credito.

Background information

The EIF is part of the European Investment Bank Group. It supports Europe's SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

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 EU’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 EU, 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.

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, and ranks in the top position in profitability (RoTE of 12.3%). Its solid balance sheet is reflected in its strong capital ratio (CET1 at 16.2% as of December, above the SREP requirement of 8.3%), sound asset quality (NPE ratio of 2%) and low cost of risk of (3bp). The Bank is adapting its operations to the new client’s needs, investing in processes, digitalization and technology, to deliver the best service experience materialized in the expansion if its loyal customer base.

Press contact

EIB: David Yormesor, yormesor@eib.org, tel.: +352 4379 89076, mobile: +352 621 554 578
Maite Cordero, m.corderomunoz@eib.org, mobile: +34 606668262
Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org

European Commission: Flora MATTHAES
Phone +32 229 83951
Mail flora.matthaes@ec.europa.eu

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.


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