Portugal: EIB and Millennium bcp: EUR 500 million to facilitate access to credit for SMEs and midcaps

The European Investment Bank (EIB) is providing a first EUR 250 million tranche of a EUR 500 million loan to Banco Comercial Português (Millennium bcp) to finance the investment projects of SMEs and midcaps located in Portugal. The finance contract for the first EUR 250 million tranche was signed today in Lisbon by EIB Vice-President Román Escolano and Millennium bcp’s CFO Miguel Bragança.

In addition to small and medium-sized enterprises (SMEs), so-called midcaps (firms with up to 3 000 employees) and other public and private sector entities wishing to carry out small and medium-scale projects in Portugal will also be eligible for financing. Individual projects from SMEs can receive up to EUR 12.5 million per project of EIB funding and up to 50% for other types of project. Under the agreement, Millennium bcp undertakes to match the EIB loan with at least the same amount, giving a further boost to its medium and long-term corporate lending volume.

These funds will provide SMEs and midcap companies with long-term financing for their investment projects mainly in industry and the services sector. The EIB loan will advance funds to such firms on favourable interest rate and maturity terms.

Financing small business is one of the EIB’s investment priorities. In 2014, the EIB Group provided a record EUR 25.5 billion for small businesses, reaching more than 290 000 companies throughout Europe. In Portugal, in the same year, the EIB signed loan agreements totalling EUR 1 319 million including EUR 875 million for SMEs and midcaps.