EIB Partners with Caixa Geral de Depósitos to Boost Strategic Investments in Portugal

EIB Partners with Caixa Geral de Depósitos to Boost Strategic Investments in Portugal

(IN BRIEF) The European Investment Bank (EIB) has provided a €150 million guarantee to Caixa Geral de Depósitos (CGD) to enhance financing for mid-cap companies and public entities in Portugal, aiming to generate up to €420 million in new investments. This initiative offers businesses more favorable loan terms, including lower interest rates and reduced collateral requirements. It focuses on supporting economic growth, job creation, and regional development, particularly in less developed areas. The partnership is part of the EU’s “LRS-EU LE Risk Sharing Instrument,” which promotes risk-sharing in financing to bolster innovation and competitiveness in key sectors of the Portuguese economy.

(PRESS RELEASE) LUXEMBOURG, 30-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB) has extended a €150 million guarantee to Portuguese bank Caixa Geral de Depósitos (CGD) to enhance financing for key industrial sectors and public entities in Portugal. This collaboration aims to stimulate up to €420 million in new investments, offering businesses more accessible financial resources through lower interest rates, larger financing volumes, and reduced collateral requirements.

The initiative primarily targets mid-cap companies, which, alongside small and medium-sized enterprises (SMEs), form the backbone of Portugal’s economy. The funding will foster economic growth and job creation, particularly benefiting businesses in less developed regions, aligning with the EIB’s cohesion objectives.

Jean-Christophe Laloux, EIB Director General and Head of EU Lending and Advisory, praised CGD’s role as a trusted partner in Portugal, stating: “We are delighted to collaborate with CGD to support the competitiveness and innovation of mid-caps, which are vital to Portugal’s long-term economic success.”

Francisco Cary, CGD Executive Board Member, highlighted the significance of the partnership: “Our longstanding collaboration with the EIB underscores the power of joint efforts between banks and businesses to drive success. This agreement reaffirms CGD’s proactive approach to corporate banking by delivering tailored financial solutions that support sustainable growth. We are committed to implementing this instrument swiftly to support mid-caps and the public sector.”

This guarantee forms part of the EU’s “LRS-EU LE Risk Sharing Instrument,” designed to promote risk-sharing in financing and ensure that beneficiaries can access financial resources under more favorable and secure conditions. The program aligns with the EU’s goals of fostering economic resilience, innovation, and regional development across member states.

Advancing Growth and Regional Cohesion

By supporting CGD’s lending operations, the EIB initiative bolsters Portugal’s strategic industrial sectors and strengthens its economy. With a focus on competitiveness, innovation, and sustainability, the partnership underscores the commitment of both institutions to fostering long-term growth and development in Portugal.

Background information

About the EIB

The European Investment Bank (EIB) is the European Union’s long-term financing institution owned by its Member States. It makes finance available for investment in order to contribute towards EU policy goals. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Bank Group (EIB Group) – comprising the European Investment Bank (EIB) and European Investment Fund (EIF) – signed a total of €2.1 billion in financing in Portugal in 2023. Almost half of this financing went to supporting small and medium-sized businesses and mid-caps. The EIB Group signed a total of €88 billion in new financing in 2023.

About CGD

Caixa Geral de Depósitos is the leading bank in Portugal and its mission is to create value for Portuguese society by providing quality banking services to individuals and companies, thus contributing to improving the well-being of Portuguese families and the development of the business sector.

Media Contacts:

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

André Milheiro
a.milheiro@ext.eib.org
+352 4379 – 73823

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank