EU bank and CGD provide EUR 300 million to support Portuguese SMEs
The European Investment Bank (EIB) has granted a EUR 150 million loan to Caixa Geral de Depósitos S.A. (CGD) to facilitate financing of small and medium-sized investment projects implemented by Portuguese companies. This is the last tranche of a total EUR 300 million loan that the EIB has granted to CGD to provide funding on advantageous terms to SMEs and midcaps in order to foster economic growth and employment creation in Portugal. Around 30% of the total funds may be used to finance small projects implemented by public sector entities. CGD undertakes to match the EIB financing with at least the same amount, therefore providing total financing of EUR 300 million to SMEs and midcaps.
Thanks to the EU bank’s support, SMEs and midcaps will benefit from access to long-term financing on favourable terms for their investments and working capital needs, as CGD will pass on to the final beneficiaries the EIB’s advantageous financing conditions in terms of both long maturities and low interest rates. The signing ceremony for the loan took place in Lisbon in the presence of EIB Vice-President Román Escolano and Mr Paulo Moita de Macedo, CGD’s Vice Chairman and CEO. This operation will enable financing of individual projects of up to EUR 12.5 million for SMEs and up to EUR 25 million for midcaps.
“This loan will contribute to facilitating access to credit for Portuguese SMEs, which account for around 80% of total employment in Portugal”, said EIB Vice-President Román Escolano at the signing ceremony. “We are confident that the financing capacity provided by the EIB through this loan on advantageous terms will have a direct and positive impact on growth and employment creation in the country.”
Paulo Moita de Macedo, CEO of Caixa, said that "Caixa wants to grow its share of loans to SMEs and this line is an excellent option available to entrepreneurs."
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.