InvestEU Program Facilitates Access to Finance for Portuguese SMEs through Caixa Geral de Depósitos and EIF Agreement

InvestEU Program Facilitates Access to Finance for Portuguese SMEs through Caixa Geral de Depósitos and EIF Agreement

(IN BRIEF) Caixa Geral de Depósitos (CGD) and the European Investment Fund (EIF) have signed an agreement to provide up to €378 million in new credit lines for Portuguese small and medium-sized enterprises (SMEs). Supported by the InvestEU program, the initiative aims to improve access to finance for eligible companies in seven thematic areas, including sustainability, innovation, social economy, and more. The credit lines will benefit from guarantees of 50% to 80% from the EIF and have a maximum maturity of 12 years. The funding will support the green transformation of SMEs, digital adoption, entrepreneurship, and competitiveness. Additionally, specific credit lines will target social projects, cultural and creative sectors, and skills and education. The partnership aims to boost economic growth and support SMEs in Portugal.

(PRESS RELEASE) LUXEMBOURG, 31-May-2023 — /EuropaWire/ —  The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), and Caixa Geral de Depósitos (CGD) have entered into a guarantee agreement aimed at mobilizing up to €378 million in new credit lines to enhance access to finance for small and medium-sized enterprises (SMEs) in Portugal.

Supported by the InvestEU program, this agreement seeks to facilitate financing for eligible companies across seven thematic areas: Sustainability, Innovation, Social Economy, Cultural and Creative Sectors, Skills and Education, Competitiveness, and Microcredit.

Under the terms of the agreement, operations will benefit from guarantees ranging from 50% to 80% provided by the EIF, with a maximum maturity of 12 years. The maximum funding amounts will vary based on the sector, with potential funding of up to €7.5 million for Sustainability and Innovation projects.

CGD will offer a range of multi-sector credit lines, including Caixa InvestEU Green, Caixa InvestEU Inovação, and Caixa InvestEU Start. These credit lines will support investments that contribute to the green and sustainable transformation of SMEs, the adoption of digital technologies, the digital transformation of companies, technology transfer, and research results for the market, as well as investments that enhance business development and competitiveness for new companies and startups.

Caixa InvestEU IPSS will provide support to Private Institutions of Social Solidarity (IPSS) and public entities focused on social objectives, while Caixa InvestEU Social Projeto will be dedicated to entrepreneurship and income-generating activities, particularly for individuals looking to establish or develop microenterprises. Caixa InvestEU Cultura Criativa will support projects within the Cultural and Creative Sectors, while the education sector and SME training needs will be catered to by the credit facility Caixa InvestEU Competências e Educação.

Through these initiatives, CGD and EIF aim to foster economic growth, innovation, and sustainability in Portuguese SMEs by facilitating their access to the necessary financing for their projects and expansion.

Paulo Moita de Macedo, Chairman of the Executive Committee of CGD, states that “These credit facilities that CGD just launched associated with guarantees from the EIF are important for coping with the financing needs of micro and small Portuguese companies that face rapid transformations in the market, in areas that are fundamental for their present and future growth.”

Marjut Falkstedt, Chief Executive of the EIF, stresses that “I am delighted to be signing this InvestEU-backed agreement with Caixa Geral de Depósitos to support micro and small businesses in Portugal. The diverse credit lines will help fuel the transformation of small business in key areas such as innovation, sustainability, and the social economy”.

Ricardo Mourinho Félix, Vice-President of the EIB, stated that: “It’s essential to support SMEs with investments that provide a pathway to a desirable digital transformation. This ability to unlock important growth is key to companies whose mission is to innovate and boost the green transition, generating growth and creating jobs”.

Paolo Gentiloni, European Commissioner for the Economy, says that “Small and medium-sized businesses have long been Europe’s driving force for growth and job creation. This investment can also enable them to be a major contributor to a green, digital and inclusive economy. I am proud that, thanks to this agreement, InvestEU is playing a crucial role in providing businesses in Portugal with the finance they need to fulfill their potential”.

Background information

The EIF is part of the European Investment Bank Group. Its core mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture capital, guarantees and microfinance instruments specifically aimed at this market segment. In this role, the EIF advances the EU’s objectives of supporting innovation, research and development, entrepreneurship, growth and jobs.

The InvestEU Program aims to finance sustainable investments, innovation and job creation in Europe. It supports the funding of the European Union’s political priorities, such as the European Green Deal and the digital transition. The InvestEU program brings together several EU financial instruments, making the financing of investment projects simpler, more efficient and more flexible. The program consists of three components: the InvestEU Fund, the InvestEU advisory platform and the InvestEU portal. Under the program, the InvestEU Fund is implemented through financial partners who invest in projects using the guarantee of the EU budget, thus mobilizing at least €372 billion of additional investment.

Caixa Geral de Depósitos, is the Portuguese leading financial group with more than 143 years and sound international presence. CGD’s mission consists of creating value for the Portuguese society, by providing quality banking services to individuals and companies, thus contributing for the well-being of Portuguese families and for the development of the corporate sector, while generating and adequate return to the shareholder. CGD’s ensures clients have access to diversified array of quality financial products and services, with special emphasis on savings and medium and long term credit solutions, based on an efficient corporate governance model and respect for the highest ethical standards.

Press contacts 

EIB Group
Maite Cordero | m.corderomunoz@eib.org | tel.: +34 606 66 82 62
Filipe Carvalho | f.carvalho@ext.eib.org | tel.: +351 96 507 21 07
Website: www.eib.org/press | Press Office: +352 4379 21000 — press@eib.org

Caixa Geral de Depósito
sLuís Goldschmidt – Press Officer
Tel: +351 963001680 – Luis.goldschmidt@cgd.pt

SOURCE: European Investment Fund