The European Investment Bank (EIB) has granted a EUR 100 million loan to Banco Santander for financing the investment projects of mid-cap companies (with up to 3 000 employees) mainly in the industrial and service sectors. The loan agreement was signed in Madrid by EIB Vice-President Magdalena Álvarez Arza and Banco Santander’s CEO, Emilio Botín.
This loan is being provided in the framework of the Bank’s policy of fostering the development of mid-caps and promoting long-term investment in multiple areas of the economy. At the same time, it will help to stimulate growth and job creation by mid-caps. The projects eligible for financing will be located mostly in Spain and to a lesser extent in other EU countries. Around 40% of the loan amount will go to projects in convergence regions.
This credit line – the EIB’s first operation with Banco Santander specifically targeting mid-caps – follows on from previous EIB loans to the bank and will strengthen the existing ties between the two institutions.
In 2011, the EIB Group provided a record EUR 13 billion worth of loans for small and medium-sized businesses, reaching more than 120 000 companies throughout Europe. It signed loan agreements in Spain totalling EUR 9 079 million, including EUR 1 388 million in support of investment by Spanish SMEs.