The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has signed a new securitization transaction worth €250 million with Santander to boost support for SMEs and mid-cap companies in Spain, support the agricultural sector, and promote female entrepreneurship in the country. This securitization will enable Santander to mobilize up to €370 million to improve access to finance for businesses in strategic sectors, drive agricultural development, and strengthen economic cohesion across all regions.
As part of the transaction, the EIF will contribute €200 million through a bilateral guarantee with ING, while the EIB will invest €50 million. The entire EIB Group investment is channeled through a single securitization operation, which has also attracted other private investors.
The EIF’s €200 million investment will mobilize up to €270 million in additional financing to support a broad range of the EIB Group’s strategic objectives, such as the green transition of SMEs and mid-caps, the promotion of female entrepreneurship, and the provision of green loans to individuals.
The EIB’s €50 million investment will mobilize up to €100 million in financing for projects in the agricultural sector carried out by SMEs and mid-caps operating in Spain. The investments are expected to cover a wide range of activities such as sustainable and regenerative agriculture, working capital to improve resilience and adaptation to climate change of crop varieties, infrastructure improvements, and water management systems. Approximately 10% of the financing will be allocated to young and newly established farmers, who will be supported by the EIB in acquiring farmland. The investment is part of the Pan-European Agriculture Programme, a €3 billion package launched by the EIB in 2024 to support agricultural businesses, with a particular focus on those led by young entrepreneurs.
This transaction once again demonstrates the role of the EIB Group in promoting financial instruments such as securitization that help unlock capital for green projects, reduce risk for sponsoring financial institutions, and strengthen the EU Capital Markets Union.
The agreement with Santander contributes to the EIB Group’s eight strategic priorities, namely strengthening the agriculture and bioeconomy sectors in Europe, supporting climate action, promoting female entrepreneurship, fostering economic, social and territorial cohesion, and advancing the EU Capital Markets Union.
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