>@EIB/To be defined

The European Investment Bank (EIB) and Banco Santander Totta have signed a EUR 200 million loan to finance small and medium-sized projects mainly undertaken by SMEs (firms with up to 250 employees) and midcaps (firms with up to 3000 employees). Under the agreement, Banco Santander Totta will match this EIB loan with the same amount, meaning that a total of EUR 400 million will be available to support SMEs and midcaps.

The loan agreement was signed in Lisbon today by EIB Vice-President Román Escolano and by the President of the Executive Committee of Banco Santander Totta, António Vieira Monteiro.

The EIB loan will provide these companies with long-term finance for their investment projects and credit lines on favourable terms. The subloans will finance investment projects costing up to EUR 25 million in the case of SMEs and up to EUR 50 million in the case of midcaps in Portugal. The EIB funds will be earmarked for financing projects mainly promoted by SMEs and midcaps, but part of it could also be allocated to public sector entities. A tranche of the new facility is expected to be specifically used by Santander Totta to finance eligible projects undertaken by universities including educational infrastructure and R&D activities.

The current loan is a continuation of a long-standing and successful cooperation between EIB and Banco Santander Totta and follows a previous loan signed in 2013  for EUR 200 million also supporting mainly SMEs investments in Portugal.

The loan will have a positive impact on economic activity and will help to increase the productivity of the final beneficiaries. Most of the projects eligible for financing will be located in convergence areas in Portugal, so contributing to economic and social cohesion.

Financing small businesses is one of the EIB’s investment priorities. Last year alone, the EIB and its subsidiary the European Investment Fund provided a record amount of around EUR 22 billion for SMEs and midcaps, benefiting some 230 000 companies across Europe. In Portugal, it made available EUR 595 million in 2013 for new credit lines designed to finance the investment projects of SMEs and midcaps.