The European Investment Bank (EIB) has granted a EUR 150 million loan to Banco Santander Totta to facilitate financing to SMEs, midcaps and public sector entities. EIB Vice-President, Román Escolano, and the President of the Executive Committee of Banco Santander Totta, António Vieira Monteiro, have signed the contract today in Lisbon. This EUR 150 million facility is the second tranche of a total EUR 500 million intermediated loan to BST aimed to facilitate financing of small and medium-sized projects.

Thanks to the EIB financial support, Banco Santander Totta will have more available funds to facilitate investments mainly promoted by SMEs and Mid-Caps. Up to 30% of the loan amount could be used to finance small projects implemented by municipalities or other public sector entities. This EIB loan will make it possible that final beneficiaries have access to funding at favourable interest rate and longer tenor for financing their investments and working capital.

This is the fifth EIB operation with Banco Santander Totta for SMEs and Mid-Caps. The first EUR 200 million tranche of the total EUR 500 million intermediated loan to Banco Santander Totta was signed in November 2015 and it has facilitated funds for 1.270 different projects in Portugal.

In the signature ceremony, EIB Vice-President, Román Escolano, said: “The agreement signed today in Lisbon with Banco Santander Totta will facilitate credit to Portuguese companies that may have difficulties to access to finance. SMES and Mid-Caps account for about 79% of total employment in Portugal. Therefore, the EIB financial support through this loan will contribute to fostering long-term growth and creating jobs in the country.”

António Vieira Monteiro, CEO of Banco Santander Totta, added: “This second tranche of EUR 150 million arrives at the right time. With these funds available to our SMEs and Mid-Caps they can continue to grow, focusing on internationalization and retain talent, so important for the development of Portugal. Santander Totta has been reinforcing its support for the economy, with a focus on SMEs and Mid-Caps”.