BBVA ABS FOR SMES & ENTREPRENEURS

The operation consists of a consumer ABS cash transaction to support small and medium sized enterprises (SMEs) in Spain.

The aim is to enhance access to finance for the final beneficaries.

This operation will target Spanish SMEs and entrepreneurs, with a special focus on Cohesion regions, which account for approximately 51% of Spain's GDP. The aim is to promote and accelerate private sector investment and facilitate access to finance for SMEs, which are vital to Spain's economic fabric.

Spanish SMEs represent 99.8% of all companies, employ over two-thirds of the workforce, and generate approximately 62% of gross value added (GVA) in the business economy (European Commission, 2023 SBA Fact Sheet ? Spain). Despite their importance, access to finance remains one of their top three obstacles, particularly for micro-enterprises and start-ups. SMEs face significant challenges in accessing financing. According to recent data, only 27% of SMEs applied for bank loans, with 14% of SMEs (compared to 7% of larger firms) pointing to significant obstacles for bank finance availability?the highest rate since 2016.

This operation is designed to address working capital shortages, liquidity gaps, and delayed investment decisions, which have been exacerbated by persistently high inflation, the prolonged war in Ukraine, and a volatile global geopolitical environment. In Spain, SMEs have also been hit hard by elevated energy prices and supply chain disruptions, increasing their cost base and limiting their margins (Banco de España, 2024, BBVA Research, 2024).

In addition, the operation will support Spanish entrepreneurs, particularly those starting new ventures or in the early stages of company growth. Spain has a vibrant entrepreneurial scene, yet 42% of start-ups cite access to finance as a key barrier, especially for innovation-driven and tech-enabled firms (Global Entrepreneurship Monitor Spain 2023). The Spanish start-up ecosystem continues to expand, with hubs like Madrid and Barcelona leading the way, but young companies still face structural barriers such as limited venture capital, short credit history, and high collateral requirements for traditional loans. This operation will help close that financing gap by providing more accessible funding.

The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.