Banco Sabadell and the European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), have signed a new covered bond and a securitisation transaction, investing a total of €822.5 million. This investment enables Banco Sabadell to mobilise approximately €1.879 billion to finance the liquidity and investment needs of SMEs and mid-cap companies in Spain.
The covered bond promoted by Banco Sabadell facilitates financing for companies to address their liquidity needs and undertake investments, with part of the funding earmarked to foster investment in green projects. This financing is mainly targeted at companies located in cohesion regions, where per capita income is below the EU average. The EIB has invested €500 million in this covered bond, allowing Sabadell to mobilise approximately €1.018 billion in new financing for SMEs and midcaps.
Of this amount, up to €180 million will be allocated to projects by companies affected by the floods suffered in Spain at the end of 2024, as well as to support preventive measures to mitigate future flooding. In addition, up to €138 million is aimed at financing SMEs, midcaps and public entities such as irrigation associations operating in the agricultural sector. Financing for irrigation communities enables Banco Sabadell to support projects undertaken by entities with public-sector status in Spain, focused on the rehabilitation, modernisation and improvement of existing infrastructure to achieve greater water-use efficiency.
The securitisation transaction also channels financing to meet the working capital and liquidity needs of SMEs and midcaps, while facilitating access to the investment required to strengthen their competitiveness. In this securitisation, the EIB Group has invested €322 million, of which the EIB contributed €270 million and the EIF €52.5 million in the senior tranche. The EIF’s investment also includes a green component, enabling Banco Sabadell to generate a green loan portfolio of more than €52 million. Furthermore, the securitisation complies with the STS (“Simple, Transparent and Standardised”) criteria, in line with European securitisation standards aimed at fostering a robust and efficient capital markets framework.
Eduardo Currás, Deputy CEO and Head of Corporate Banking at Banco Sabadell, stated: “This agreement with the EIB Group reinforces Banco Sabadell’s longstanding commitment to Spanish SMEs and midcaps, whom we continuously support in their liquidity and investment needs, especially at key moments for growth or recovery. With the mobilisation of €1.879 billion, we will be able to decisively support reconstruction following past climate events and pave the way towards a more sustainable productive model. Banco Sabadell is proud to collaborate with the EIB and the EIF in an agreement that highlights our climate commitment and support for SMEs and midcaps, while strengthening European capital markets and long-term economic development.”
“These agreements with Sabadell facilitate access for Spanish SMEs and midcaps to the financing they need to cover working capital requirements and invest in the green transition and competitiveness. They also help strengthen EU capital markets, support reconstruction following the severe floods experienced in Spain in 2024 and back preventive measures to enhance resilience against future flooding. The transaction also boosts agricultural projects through the financing of irrigation communities to modernise infrastructure and improve water-use efficiency,” said Gemma Feliciani, Director for Financial Institutions at the EIB.
“Our latest collaboration with Sabadell reinforces the firm commitment of both institutions to support Spanish small and medium-sized enterprises by facilitating their access to financing. With this operation, we are jointly moving towards a more responsible and inclusive economic model aligned with the European Union’s climate objectives,” commented Marjut Falkstedt, Chief Executive of the EIF.
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