Strategic Alliance: EIB and Banco Sabadell Drive Economic Cohesion in Spain

Strategic Alliance: EIB and Banco Sabadell Drive Economic Cohesion in Spain

(IN BRIEF) The European Investment Bank (EIB) and Banco Sabadell have joined forces in a significant deal, signing a guarantee agreement worth up to €200 million, which is the first phase of a broader operation of €300 million. Over the next two years, Banco Sabadell will be enabled to extend loans totaling up to €400 million to small and medium-sized enterprises (SMEs) and mid-caps in Spain, potentially reaching €600 million upon completion. This collaboration aims to promote private sector investment, address financing needs, and foster economic, social, and territorial cohesion within Spain and the European Union, particularly targeting less developed regions.

(PRESS RELEASE) LUXEMBOURG, 6-Jun-2024— /EuropaWire/ — In a strategic move to bolster the Spanish economy, the European Investment Bank (EIB) and Banco Sabadell have sealed a landmark deal with a guarantee agreement worth up to €200 million. This agreement marks the initial phase of a broader operation sanctioned by the EIB, totaling up to €300 million. This collaboration is poised to inject vitality into the Spanish economic landscape, with a focus on fostering private sector investment and addressing the financing requirements of a crucial segment within the economy.

Over the span of the next two years, Banco Sabadell will be empowered to extend financial support totaling up to €400 million to various projects championed by small and medium-sized enterprises (SMEs) and mid-caps across Spain. The potential impact of this collaboration is significant, potentially reaching €600 million upon the completion of the remaining tranche of the EIB-approved operation.

This partnership is not merely about numbers; it underscores a commitment to fueling economic growth, enhancing social cohesion, and fortifying territorial unity within Spain and the broader European Union. By leveraging the EIB guarantee, Banco Sabadell aims to unlock fresh opportunities for SMEs and mid-caps, enabling them to navigate challenges related to working capital, liquidity, and investment barriers.

Jean-Christophe Laloux, Director General of Operations in the European Union at the EIB, expressed satisfaction at the prospect of enabling access to favorable lending solutions for Spain’s SMEs and mid-caps, emphasizing the pivotal role they play in the nation’s economic landscape. Likewise, Carlos Ventura, General Manager and Head of Business, Network and Private Banking at Banco Sabadell, reiterated the bank’s dedication to empowering businesses, underscoring the importance of collaborative efforts in providing optimal financing conditions.

The impact of this agreement is expected to reverberate across regions classified as less developed by the European Union, amplifying economic opportunities where per capita income falls below 75% of the EU average. This initiative aligns seamlessly with the EIB’s broader mission to bolster SMEs and mid-caps while adhering to EU priorities aimed at enhancing the competitiveness of European industry.

This latest collaboration marks yet another milestone in the enduring partnership between the EIB Group and Banco Sabadell, building upon previous initiatives such as a similar operation executed in 2021 to alleviate the economic strains inflicted by the COVID-19 pandemic on Spanish SMEs and mid-caps.

European Investment Bank

The ElB is the long-term lending institution of the European Union, owned by the Member States. It finances sound investments that further 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 EIB Group, consisting of the 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.

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SOURCE: European Investment Bank


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