EUR 250m EIB credit facility to IFD: first EUR 100 million tranche to support Portuguese SMEs and midcaps
The European Investment Bank (EIB) will grant a EUR 100 million loan to Instituição Financeira de Desenvolvimento (IFD) under an established credit line in the total amount of EUR 250 million. The agreement is the first one between the EU bank and the Portuguese national promotional institution and it will allow IFD to provide credit lines to the national banking system with advantageous financial conditions, both in terms of low interest rates and long tenors, to support investment projects of Portuguese companies. The loan contract has been signed today in Lisbon by EIB Vice-President, Román Escolano, and IFD Executive Board Member, Henrique Cruz.
Under this agreement, IFD will ensure that financial intermediaries match the EIB loan with at least the same amount for the benefit of SMEs and midcaps. Therefore, the EIB-IFD agreement will provide a total of EUR 200 million worth of finance to SMEs and midcaps. SMEs will be able to receive financial support of up to EUR 12.5 million per project, and midcaps up to EUR 25 million.
This EIB financing is aimed to support sustainable economy growth and employment creation in Portugal. The agreement between the EU bank and the Portuguese national promotional institution will support investment projects and the reinforcement of working capital, innovative exporting industries and companies working in different sectors, mainly industry, tourism, agriculture and forestry.
“The EIB is delighted to sign today our first agreement with IFD. National promotional banks and institutions are key EIB partners throughout the European Union and we work very closely with them to channel funding to SMEs, bigger projects or investment platforms. I am therefore convinced that a national promotional institution in Portugal fully-equipped to perform on-lending activities will perform a very important role in the economy”, stressed EIB Vice-President Román Escolano at the signing event. “We are confident that today´s agreement will be the first step in a very long and fruitful collaboration”.
“This is a crucial step in our way to become a real promotional bank and fulfill IFD’s mission. As with humans, young institutions can benefit from partnering with more experienced ones. This is how we see this agreement with EIB, the first of many to come, we are sure!” said IFD Chairman Alberto de Castro.
In 2017, the EIB Group provided EUR 29,600 million for small businesses, reaching 285,800 companies throughout Europe. In Portugal, also last year, the EIB Group signed loan or guarantee agreements totalling EUR 1,906 million, including EUR 1,022 million that contributed to supporting more than 6,600 Portuguese SMEs.