Release date: 6 March 2024
Promoter – Financial Intermediary
BANCA MARCH SALocation
Description
The linked risk-sharing operation (own-resources, full delegation) will help the intermediary to support mid-caps in Spain.
Additionality and Impact
This Linked risk sharing operation is designed to provide support to mid-caps in order to foster access to finance and contribute to long-term economic growth. The operation addresses the underlying market failure in access to finance faced by Final Beneficiaries due to information asymmetries and credit considerations on the side of the Financial Intermediaries. Given the economic uncertainty exacerbated by supply chain constraints, inflation, rising interest rates, energy security constraints, the lasting effects of the pandemic as well as the Russian aggression in Ukraine, the proposed risk sharing operation may alleviate some of the pressures faced by the real economy. Specifically, the operation will support social objectives such as employment via the provision of eligible transactions such as loans for working capital and investment purposes to mid-caps. The Financial Intermediary is an established player in the target market and a repeat client of the EIB, having successfully implemented previous operations. The guarantee may alleviate capital- and credit related concerns of the Financial Intermediary and thereby free up additional lending capacity. The EIB contribution rests on assuming credit risks to the Final Beneficiaries and thereby allowing the Financial Intermediary to engage into transactions that it would not have engaged in without the EIB's intervention. The operation is expected to carry a signalling effect, thereby crowding in other parties. The product is not readily available on markets and an alternative means to promoting lending to the real economy compared to other promotional schemes available.
Objectives
The aim is to enhance access to finance to eligible beneficiaries.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 150 million
Total cost (Approximate amount)
EUR 420 million
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 9/10/2024