The Government has launched the España Crece fund, a strategic public-private collaboration initiative that will mobilize around €120 billion in investments to consolidate the current stage of economic growth and modernize Spain’s productive sector.
The fund, set to be launched in the second quarter of this year, extends the transformative momentum of the Next Generation EU funds beyond 2026, the official end of the Recovery Plan.
España Crece will be managed by the Official Credit Institute (ICO), which will receive a capital injection of €13.3 billion, structurally strengthening its capacity as the national promotional bank. Of this amount, €10.5 billion are loans from the Recovery Plan, and €2.8 billion are non-repayable transfers, enabling, in certain cases, more favorable terms in duration and cost.
With these resources, ICO will have the capacity to invest up to €60 billion directly, while also promoting co-investment with the private sector, so that total mobilized financing reaches approximately €120 billion.
España Crece will offer a wide range of financial instruments (loans, project financing, equity injections, guarantees) and ensure that financing supports companies continuously across the different stages of their lifecycle, from inception to expansion.
The fund will prioritize areas of special relevance to the Spanish economy, such as affordable rental housing construction and the green transition, as well as innovative projects in cutting-edge sectors (bio-tech, food-tech, care economy), ensuring balanced development across the country.
España Crece’s financing will target sectors with high transformative potential, where public contribution is decisive to achieving a competitive and innovative productive fabric.
España Crece will prioritize the development of affordable and social rental housing as a key lever to strengthen social cohesion and the competitiveness of the Spanish economy, where access to housing remains one of the major economic challenges.
The goal is to help increase the supply of available housing and enable the development of projects that, due to their income profile and investment horizons, require tailored financing instruments and risk-sharing mechanisms to mobilize additional investment.
To achieve this, España Crece will combine long-term financing — including, when necessary, non-repayable tranches to ensure the economic viability and repayment capacity of certain projects — with equity investment solutions aimed at strengthening the own funds of development and management vehicles.
Indicatively, the planned structure could mobilize up to €23 billion in investment in affordable rental housing construction and contribute to building around 15,000 homes per year.
In this segment, ICO will act as a catalyst, promoting co-investment and attracting private capital to scale impact. In this context, public participation helps improve project viability, accelerate implementation, and mobilize additional resources while maintaining principles consistent with a public dimension
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