EIF and Caja Rural Group through Banco Cooperativo Español will support Spanish SMEs with €200million

• The EIF provides a guarantee of up to €140 million to Caja Rural Group through Banco Cooperativo Español to support the economic recovery of SMEs in Spain.
• The agreement is backed by the Pan-European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved in the wake of the COVID-19 pandemic.

The European Investment Fund (EIF), part of the European Investment Bank Group, has joined forces with Caja Rural Groupo through Banco Cooperativo Español to mitigate the economic impacts of the COVID-19 crisis in the SME sector by offering more favourable financing to SMEs impacted by the pandemic.

The EIF will provide a €140 million guarantee to Caja Rural Group through Banco Cooperativo Español, enabling the Spanish bank to originate a portfolio of €200 million of financing for Spanish SMEs to mitigate the economic consequences of the pandemic. The EIF will take up to 70% of the risk on the loans granted by Caja Rural Group through Banco Cooperativo Español. It is estimated that the signed agreement will facilitate access to finance at advantageous conditions for more than 1,200 small businesses, thereby also safeguarding employment levels.

The agreement is backed by the European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved in the wake of the COVID-19 pandemic.

Thanks to the EIF and the European Guarantee Fund, Caja Rural Group through Banco Cooperativo Español will provide a wide range of debt financing solutions to Spanish companies with sustainable business plans, ensuring they have sufficient financing available to promote their investment needs in the medium to long term.

“The EIF is pleased to team up with Caja Rural Group through Banco Cooperativo Español to facilitate access to finance for SMEs in Spain. Thanks to this agreement under the European Guarantee Fund (EGF), the Spanish bank will be able to support the liquidity needs of companies, while safeguarding jobs and promoting an inclusive recovery from the COVID-19 crisis,” said Alain Godard, Chief Executive of the EIF.

“Thanks to the EGF, we are expanding our network of intermediaries in Spain to support the liquidity needs of small and medium-sized businesses and this agreement is yet another great example”, said EIB Vice-President Ricardo Mourinho Félix.

“By signing this agreement, Caja Rural Group through Banco Cooperativo Español reaffirms its closeness and commitment to promote the growth of companies that have been impacted by Covid 19,” said Juan Luis Coghen, Commercial Director of Banco Cooperativo Español.

Background Information

About the European Investment Fund (EIF)

The European Investment Fund is part of the European Investment Bank Group. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. The EIF is also active in supporting Climate and Infrastructure fund investments with a strong focus on climate action & environmental sustainability. Through its activities, the EIF fosters EU objectives in support of countering climate change as well as fostering innovation, research and development, entrepreneurship, growth and employment.

The European Guarantee Fund (EGF) was created by Spain and other EU Member States to protect companies that are struggling in the crisis caused by COVID-19. With almost 25 billion euros in guarantees, the EGF allows the EIB and EIF to swiftly offer companies, mostly SMEs and Mid-Caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the European Union, with the objective of providing a total of 540 billion euros to support the hardest hit sectors of the EU economy.

Press Contact

EIF:

Lorenzo Squintani, tel.: +352 691 285 772, l.squintani@eib.org

Website: www.eif.org – Press office: +352 4379 21000 – press@eib.org

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