The European Investment Fund provides a 100 million euros guarantee to Banco Sabadell through InvestEU
For the first time under the InvestEU guarantee programme, the European Investment Fund (EIF) joins forces with the Spanish multinational financial services company Banco Sadabell providing a 101 million euros guarantee in order to support mid-caps and Small and Medium Businesses (SMEs). This guarantee will enable the Spanish bank to mobilize financing up to 336 million euros.
The operation aims at supporting renewable energy sector companies, high-growth small businesses and early-stage technology companies (venture capital) by providing to implementing partners an EU budgetary guarantee that will let them increase their risk-taking capacity and therefore will contribute to mobilizing public and private investment for the EU's policy priorities.
“InvestEU is playing an important role across Europe in helping small and medium-sized businesses gain access to the finance they need to innovate, expand and create jobs. I am delighted that, thanks to this agreement, many more Spanish businesses will receive the support they need to fulfill their potential”, the European Commissioner Paolo Gentiloni commented.
In concrete terms, the funds will support start-ups via venture debt operations; high growth potential industrial companies with senior and mezzanine loans; and decarbonisation sector companies (renewable energy projects and sustainability companies) in products such as senior bridge loans and subordinated loans.
Moreover, EIF will assume up to 80% of the risk of loans that Banco Sabadell grants to mid-caps and small businesses and that will consequently encourage the provision of new financing, indirectly supporting the entire start-up and renewable energy ecosystem.
About the European Investment Fund (EIF)
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture capital, private equity, guarantee and micro-finance instruments that specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.