The Ministry of Economy, Trade and Enterprise and the European Investment Fund (EIF), part of the EIB Group, have doubled the initial allocation of the Alternative Financing Instrument for Sustainable Development under the Regional Resilience Fund. Initially endowed with €200 million, the increase to €400 million responds to the strong demand for this financial instrument managed by the EIF.
These funds will be channelled through financial institutions that offer debt solutions complementary to traditional bank lending for SMEs to invest in sustainable development projects. This measure further expands SMEs’ financing options in areas such as innovation, sustainability, and competitiveness. This instrument is one of two launched by the EIF through the Regional Resilience Fund (RRF).
The RRF channels financing from Spain’s Recovery, Transformation and Resilience Plan under the NextGenerationEU programme to promote environmental and social investments across Spain’s Autonomous Communities. The RRF is led by the Ministry of Economy, Trade and Enterprise and managed in cooperation with the EIB Group.
Through the Alternative Financing Instrument for Sustainable Development, the EIF has already signed operations with seven funds: Arcano Private Debt Fund II, IB Deuda Impacto España, Talde Deuda Alternativa II, Oquendo Senior Debt III, Alteralia III, Amiral Climate Solutions Debt Fund I, and Kartesia Asset Finance III. These funds are channelling investment into projects focused on energy efficiency, circular economy, renewable energy, and social impact, among others.
The expansion aims to meet the growing market demand for this type of financing.
What is the European Investment Fund (EIF)?
The EIF is part of the European Investment Bank Group. Its main mission is to support Europe’s micro, small and medium-sized enterprises by facilitating their access to finance. The EIF designs and develops venture and growth capital instruments, guarantees, and microfinance instruments specifically targeted at this market segment.
Through its activity, the EIF contributes to key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action, and environmental sustainability.
What is the Regional Resilience Fund (RRF)?
The Regional Resilience Fund (RRF) was created to facilitate the access of Spain’s Autonomous Communities to NextGenerationEU loans under Spain’s Recovery, Transformation and Resilience Plan, with the goal of promoting investment and developing projects in eight priority areas: social and affordable housing, urban regeneration, sustainable transport and tourism, energy transition, water and waste management, the care economy, research, development and innovation, and industrial and SME competitiveness.
The RRF is promoted by the Ministry of Economy, Trade and Enterprise, with the participation of the Autonomous Communities and Cities in its investment councils, and the EIB Group as a strategic partner in its management.
In June 2024, the EIB Group and Spain’s Ministry of Economy, Trade and Enterprise announced the signing of the agreement to launch the Regional Resilience Fund, which includes:
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