Banco Sabadell and EIB Group Deploy Capital Market Instruments to Support SMEs, Agriculture and Flood Resilience in Spain

Banco Sabadell and EIB Group Deploy Capital Market Instruments to Support SMEs, Agriculture and Flood Resilience in Spain

(IN BRIEF) The EIB Group has partnered with Banco Sabadell on a €822.5 million financing operation that is expected to unlock around €1.8 billion for Spanish SMEs and mid-caps. Structured through a mortgage bond and a securitisation transaction, the initiative will support business liquidity, investment and competitiveness, with targeted funding for flood recovery, climate resilience projects and agricultural water infrastructure. The operation also includes a green finance component and reinforces the role of capital markets in mobilising private investment in support of sustainable economic growth across Spain.

(PRESS RELEASE) MADRID, 16-Dec-2025 — /EuropaWire/ — The European Investment Bank Group has approved a substantial financing package with Banco Sabadell designed to unlock new capital for Spanish businesses at a time of heightened economic, climate and infrastructure challenges. Through a combination of a mortgage bond investment and a securitisation transaction, the EIB Group will commit €822.5 million, enabling Banco Sabadell to generate approximately €1.8 billion in new funding for small and medium-sized enterprises and mid-sized companies across Spain.

The operation is structured to address several priority needs simultaneously. A €500 million EIB investment in a mortgage bond will support business liquidity and long-term investment, particularly in cohesion regions where access to financing remains more limited. Within this tranche, targeted funding has been reserved to help companies recover from the devastating floods that affected Spain in late 2024, while also financing preventive measures aimed at strengthening resilience to future climate-related events.

Part of the funding will also be directed toward the agricultural sector, where SMEs, mid-caps and public entities such as irrigation associations face growing pressure to modernise infrastructure and improve water efficiency. By supporting upgrades to irrigation and water management systems, the initiative aims to enhance the long-term sustainability and competitiveness of agricultural production in vulnerable regions.

In parallel, the EIB Group has committed €322 million to a securitisation transaction arranged by Sabadell, with contributions from both the EIB and the European Investment Fund. This element of the operation is designed to further expand access to working capital for businesses, while encouraging private investor participation in EU capital markets. A dedicated green component within the securitisation will enable the creation of a portfolio of environmentally focused loans, reinforcing the operation’s alignment with EU climate objectives.

Together, the two transactions highlight how public financial institutions can use capital market instruments to mobilise private investment, support business recovery after climate shocks and advance sustainable growth. The agreement strengthens Banco Sabadell’s ability to meet the financing needs of Spanish companies while contributing to the EIB Group’s broader goals of climate action, economic cohesion and resilient capital markets.

Background

About the EIB Group

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, it finances investments that pursue EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

In Spain, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects in 2024, contributing to the country’s green and digital transition, economic growth, competitiveness and better services for its people.

High-quality, up-to-date photos of EIB headquarters for media use are available here.

Press contacts

EIB Group

Maite Cordero | m.corderomunoz@eib.org | Tel.: +34 606 66 82 62

Website: www.eib.org/press | Press Office: +352 4379 21000 – press@eib.org

Sabadell

Communication departement | sabadellpress@bancsabadell.com | Tel. +34 93 748 50 19

SOURCE: European Investment Fund