Joint Effort by EIB and Santander Portugal Aims to Fuel Investments in the Portuguese Economy

Joint Effort by EIB and Santander Portugal Aims to Fuel Investments in the Portuguese Economy

(IN BRIEF) Santander Portugal and the European Investment Bank (EIB) have signed an agreement to help Portuguese mid-cap companies access financing more easily in a challenging financial landscape marked by high interest rates and limited liquidity. Under the deal, EIB will provide a 50% guarantee to Santander, allowing the bank to offer improved credit conditions and generate up to €400 million in new loans. This initiative is expected to stimulate new investments worth up to €560 million in the Portuguese economy. Santander Portugal and EIB have underlined their commitment to supporting mid-cap companies across the country. Banco Santander is recognized as a key partner of EIB, actively participating in various financing initiatives in countries including Portugal, Spain, and Poland.

(PRESS RELEASE) LUXEMBOURG, 2-Oct-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, and Santander Portugal have solidified their commitment to support Portuguese mid-cap companies in securing essential financing in an environment marked by high interest rates and tighter liquidity conditions. The collaboration entails a guarantee agreement signed today, enabling Santander to offer improved credit conditions through a new lending portfolio of up to €400 million.

Under this agreement, the EIB will extend a 50% guarantee to Santander, facilitating the creation of new loans totaling €400 million. The transaction is poised to have a positive impact on the Portuguese economy by catalyzing fresh investments amounting to as much as €560 million.

The signing ceremony in Lisbon witnessed the presence of EIB Vice-President Ricardo Mourinho Félix, alongside Santander Portugal Executive Board Members Amílcar Lourenço and Isabel Guerreiro. They underscored the significance of this partnership in providing vital financial support to mid-cap companies across Portugal, including those in less economically developed regions.

“In an economic landscape fraught with uncertainties — from supply chain disruptions to high inflation — the financial demands on businesses are increasingly pressing,” said Mourinho Félix. “This joint initiative aims to alleviate some of these challenges, thereby contributing to sustained economic growth and job stability across Portugal.”

Amílcar Lourenço underlined the importance of these loans to promoting the growth of companies across the country: “At Santander, we have a permanent commitment to companies: to always look for better conditions to provide them with the resources they need to grow, be successful and make our economy prosper. This agreement with the EIB is further proof that we want to be by our companies’ side, promoting investment, job creation and wealth throughout the country.”

Banco Santander has established itself as one of the EIB’s foremost partners, actively engaging in various financing operations, specialized credit lines, and risk-sharing initiatives for corporate portfolios and project finance in countries such as Portugal, Spain, and Poland.

About the EIB

The European Investment Bank Group (EIB Group) — comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) — recorded another year of excellent results in Portugal, with €1.7 billion of new financing signed in 2022.

About Santander

Santander Portugal is a leading bank in the Portuguese financial sector. The bank’s mission is to help people and companies prosper, aiming to be the best digital, open financial-services platform, acting responsibly and earning the permanent trust of employees, clients, shareholders and society. Santander is the largest private bank both in profitability and outstanding loan portfolio. Its solid balance sheet is reflected in its strong capital ratio (CET1 at 17.6% as of June 2023, above the SREP requirement of 8.3%), sound asset quality (NPE ratio of 2.1%) and low cost of risk. The bank is adapting its operations to new clients’ needs, investing in processes, digitalisation and technology to deliver the best service experience leading to the expansion if its loyal customer base.

Media contacts:

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

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

Press Office
press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank