INNOVATION PROGRAMME LOAN FOR SPAIN AND PORTUGAL

The objective of this programme loan is to finance investments in research, innovation and digitalisation to be carried out by eligible counterparts, notably mid-caps and corporates, and potentially small and medium-sized enterprises (SMEs), primarily in Spain and Portugal. The investments to be financed will be consistent with the Main Policy Priority Areas of the InvestEU Research, Innovation and Digitalisation policy window (RIDW) or financed under EIB Own Risk.

This programme loan will boost the resilience, competitiveness and digital transformation of private sector companies in Spain and Portugal.

The individual operations to be financed under this Programme Loan concern investments expected to contribute to the further development of knowledge in the fields of innovative technologies, to have positive impacts in terms of knowledge creation and sharing, environmental, safety or health benefits, improved consumer surplus. They are expected to create further incentives for investments in research, development, innovation, digitalisation in Europe and to contribute to economic growth and employment.

They will contribute to the Bank's "Innovation, Digital and Human Capital" policy objective, part of them to the Bank's Economic and Social Cohesion policy objective and the EIB Climate Action and Environmental Sustainability policy objective.

EIB financing contributes to address the market failures and gaps associated with (i) imperfect competition and incomplete markets, in the case of innovative and still market-entry stage technologies for application in different industrial sectors, and those associated with (ii) projects with positive knowledge, environmental and safety externalities generation. The specific details about the project expected benefits, market failures and investment gaps addressed will however be assessed during the appraisal of each individual operation under this PL.

The projects under this PL are expected to be sound, properly managed and implemented by competent and knowledgeable management and development teams, which will make possible implementing them, integrating all relevant sustainability features, delivering the expected results and addressing the relevant market failures.

The EIB's involvement is expected to overcome the limit of commercial credit supply in RDI projects for which a clear funding gap exists but also to companies for which flexible funding is important for sustained stability and competitiveness.

EIB's involvement is expected to generate positive effects, mainly in terms of availability of long-term funding, at favourable rates and allowing diversification of sources of funds and it should have positive impact on mobilising other financiers and signalling that a project is sound and worth supporting.

The Bank will require that projects financed under this operation comply with domestic and EU applicable legislation, as appropriate.

The Bank will require that projects financed under this operation comply with domestic and EU applicable legislation, where applicable.