Santander and the European Investment Fund (EIF), part of the European Investment Bank Group, are joining forces once again to provide financing on favourable terms to Spanish small and medium-sized enterprises (SMEs) and mid-caps to enable them to implement their projects and undertake growth and development plans. With this goal in mind, the EIF will grant a guarantee of up to €360 million that, when combined with Santander’s financing, will total more than €500 million to ensure that Spanish companies recover as quickly as possible.
This agreement between Santander and the EIF falls under the Pan-European Guarantee Fund, part of the European Union's €540 billion package to address the economic impact of COVID-19.
It means that Spanish businesses will have the financing they need to make medium to long-term growth and development plans. Part of the new financing will also back renewable energy, energy efficiency, circular economy and infrastructure projects mitigating climate change and promoting a green economy in Spain.
The EIF support will enable Santander to offer specialised products and teams to SMEs — channelling the financing of projects through its Structured Finance, Santander Corporate & Investment Banking (SCIB) division — with the aim of maintaining its leading role in Spain and taking up the challenge of driving these investments at a European level.
In June, Santander and the European Investment Bank (EIB) signed two agreements providing €2 billion of support via credit lines for advance payment of suppliers to Spanish and European companies affected by the pandemic. Thanks to these agreements, SMEs, mid-caps and large companies have a more comfortable liquidity position, with a positive impact on the entire supply chain. Santander, a leading trade finance bank, was a pioneer in promoting financial support for companies in the form of advance payment of suppliers.
Santander España General Manager of Commercial Banking Ángel Rivera said: “We are committed to the recovery of the economy and are there to help companies to grow. This agreement with the European Investment Fund will enable many SMEs to implement growth projects in areas such as renewable energy, the circular economy and infrastructure, projects that will drive the transition towards a more sustainable growth model.”
EIF Chief Executive Alain Godard stressed that: “We are very proud to join forces once again with Banco Santander to boost the economic recovery of Spanish companies. Thanks to the Pan-European Guarantee Fund, Banco Santander will be able to offer more favourable financing to SMEs and mid-caps in sectors particularly affected by the pandemic, in addition to backing projects that help to combat climate change.”
EIB Vice-President Ricardo Mourinho Félix said: “With this agreement under the Pan-European Guarantee Fund, €2.5 billion will be made available to European companies affected by the pandemic, thanks to the successful partnership between the EIB Group and Banco Santander. By working together we can reach as many companies as possible, supporting their investment needs and sustainable growth in the medium to long-term.”
Santander finished 2020 as the top financier of renewable projects in Spain and across the world — in terms of both financing volumes and number of operations — according to Dealogic’s ranking. In concrete terms, during the last financial year it took part in 28 operations worth a total of €1.17 billion in Spain, which represents 17.4% of activity in the country and keeps it in the top spot for the fifth consecutive year.
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