Banco Sabadell and the European Investment Bank (EIB) have partnered to provide €800m to Spanish SMEs (small and medium enterprises) with the aim of supporting their investments as well as of promoting the development of new projects, particularly in the services and industrial sectors.
The total amount will be shared by the two institutions, thereby the EIB will grant a €400m loan to Banco Sabadell, to which the Spanish bank will add the remaining amount of €400m.
The agreement, signed by EIB vice-president Román Escolano (pictured right) and Banco Sabadell managing director Jaime Guardiola (pictured left), will enable the full financing of those projects of up to of €12.5m in the case of SMEs.
Mid-caps will also be able to cover the full cost of their projects as long as the investment does not exceed €25m. However, if the project costs above this figure but below €50m, companies will have access to EIB funds to finance up to 50% of their investment.
This is not the first time that both banks join forces in support of SMEs. It comes after the agreement signed by Banco Sabadell and EIB in 2016, which has helped to financially support more than 800 projects from a number of Spanish SMEs. As a whole, the two entities have provided €4bn to SMEs to the date.
Companies receiving funds provided under this agreement will benefit from the EIB’s favourable conditions (in terms of both maturities and interest rates) when financing their investment projects and working capital.
The EU bank said that promoting SME’s access to credit is among its priorities in order to ensure the level of investment needed to make possible economic growth and job creation.
Román Escolano, vice-president of EIB, said: “The operation signed clearly demonstrates the importance of the EIB’s work as a driver of the Spanish economy via our support for SMEs. Working together with Banco Sabadell will enable us to reach more companies, which will thus benefit from the advantages of our financing to implement the investments they need, ensuring they are able to innovate and grow in an increasingly competitive environment.”
Banco Sabadell CEO Jaime Guardiola, said: “The agreement signed with the EIB is excellent news for Spanish entrepreneurs, as it will help to continue strengthening the development and competitiveness of Spanish companies, whether in the event of a consolidation or the launch of new business projects on the domestic market, or to assist them with going global.”