EIB Partners with Castilla y León Government to Boost SMEs with €25 Million Loan

EIB Partners with Castilla y León Government to Boost SMEs with €25 Million Loan

(IN BRIEF) The European Investment Bank (EIB) has inked a €25 million loan agreement with the regional government of Castilla y León through the Institute for Business Competitiveness of Castilla y León (ICECyL), aiming to support small and medium-sized enterprises (SMEs) and mid-caps in the Spanish region. This initial tranche of financing, part of a larger €50 million package, underscores the EIB’s commitment to fostering economic growth, promoting regional circular economy policies, and job creation in Castilla y León. The partnership between the EIB and ICECyL reflects a shared dedication to enhancing economic, social, and territorial cohesion, crucial priorities for both entities. Through past collaborations, such as the credit line signed between 2019 and 2023, significant private investment and job creation were achieved, showcasing the tangible impact of EIB-supported initiatives on the region’s economy.

(PRESS RELEASE) LUXEMBOURG, 25-May-2024 — /EuropaWire/ — The European Investment Bank (EIB) has signed a €25 million loan with the regional government of Castilla y León via the Institute for Business Competitiveness of Castilla y León (ICECyL by its Spanish acronym), a body under the auspices of the regional Ministry of the Economy and Finance, to back small and medium-sized enterprises (SMEs) and mid-caps in the Spanish region.

The EIB loan will enable ICECyL to finance projects from this business segment (mostly in the Castilla y León region) focusing on boosting competitiveness, promoting regional circular economy policies, and creating and safeguarding jobs.

The loan signed is the first tranche of a total of €50 million in financing for the regional government of Castilla y León approved by the EIB. The EIB funds will go towards financing SME and mid-cap projects via participating loans channelled through venture capital company ADE Capital Sodical SCR, in which ICECyL is a shareholder, or standard loans granted directly.

The EIB backing will mean that ICECyL can facilitate investments in a key business segment for economic growth in the region, focusing on various sectors but primarily industry and commerce. The loan will provide a boost to SMEs and mid-caps just as they face investment difficulties as a result of inflationary pressures and interest rate hikes, among other things.

The agreement also highlights the commitment of the EIB Group to economic, social and territorial cohesion, which is one of its cross-cutting priorities. Most of the projects will take place within the autonomous community of Castilla y León, which the European Union considers to be a transition region as its gross domestic product per capita is between 75% and 100% of the EU average.

This marks a new chapter of collaboration between the EIB and the regional government of Castilla y León via ICECyL. According to ICECyL data, the previous credit line signed between 2019 and 2023 resulted in a total of 51 companies benefiting from this financing agreement. In addition, a private investment of €310 million was mobilized and around 1 900 direct jobs were created, maintaining around 14 300 jobs.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing to EU policy objectives. 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), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

Media Contacts:

Jose Vicente Alzola
j.alzola@ext.eib.org
+352 4379 – 72859

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

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank