- €75 million will go exclusively to the agricultural sector, while €325 million will support small businesses and mid-caps.
The European Investment Bank (EIB) and Santander have signed a €400 million financing operation to boost investment in small and medium-sized enterprises (SMEs) and mid-caps, as well as to support the agricultural sector in Portugal. The operation aims to improve access to finance for companies operating in strategic sectors, with a view to accelerating development in the agricultural sector and to supporting cohesion regions.
The operation includes €75 million to be allocated specifically to the agricultural sector under the Pan-European Agricultural Programme. An EIB initiative, this programme aims to strengthen farming and the bioeconomy in Europe, which is one of the EIB’s eight core priorities.
At least 10% of this amount will support young and newly established farmers. The financing will also be available for the purchase of agricultural land. This is the first operation that the EIB has signed under the €3 billion package launched in 2024 to support businesses in the agricultural sector, with a particular focus on companies led by young entrepreneurs.
The remaining €325 million will be used to finance SMEs and mid-caps in Portugal. It is expected that around 60% of this figure will be allocated to cohesion regions, promoting economic development in areas where credit is less accessible, and encouraging businesses to modernise.
“This financing agreement reinforces the EIB's commitment to sustainable economic growth, ensuring that SMEs and the agricultural sector have access to favourable financing conditions,” said EIB Director-General and Head of Operations Jean-Christophe Laloux. “By supporting young farmers and innovative projects, we are helping to make the Portuguese economy more resilient and competitive.”
Santander Portugal Executive Board Member Amílcar Lourenço added: “It is with great commitment to our companies that we have concluded yet another agreement with the EIB. Every day we work to provide the best solutions for our clients, and we are aware that sustainable investment decisions are crucial for business growth and for Portugal’s development.”
This agreement reinforces the EIB's commitment to supporting the agricultural sector and economic development, promoting financial inclusion and sustainable growth in Portugal.
To carry out the operation, Santander is issuing debt securities in the form of premium European covered bonds subscribed exclusively by the EIB. In this way, the EIB will provide financing directly to Santander, which in turn will use these resources to support SMEs and mid-caps – including young farmers – thus ensuring better financing conditions.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union and the capital markets union.
The EIB Group, which includes the European Investment Fund (EIF), signed almost €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Around half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.
High-quality, up-to-date photos of our headquarters for media use are available here.
About Santander Portugal
Santander Portugal is a leading bank in the Portuguese financial system, whose mission is to contribute to the development of people and companies. Serving around 3 million customers, Santander's vision is to be the best open financial services platform, all while acting responsibly and earning the trust of partners, clients, shareholders and society.
Santander is the largest private bank in Portugal in terms of credit granted, with a privileged position in segments such as mortgage and corporate credit, and also in profitability and efficiency, with a return on equity of 32.2% in March 2025. The strength of its balance sheet is reflected in high capital ratios (CET1 of 14.2% in March 2025, above the SREP requirement of 8.4%) and high credit portfolio quality (non-performing exposure ratio of 1.5%).
The bank has been implementing a comprehensive digitalisation strategy, geared towards simplifying processes and innovation, thus providing its clients with a more attentive and personalised service to ensure they have the best possible experience.