The Spanish Ministry of Energy, Tourism and the Digital Agenda, in conjunction with the Instituto de Crédito Oficial (ICO) and the European Investment Bank (EIB), has implemented a EUR 100m credit line for energy efficiency improvement projects in the hospitality sector and for small and medium-sized enterprises and large companies in the industrial and commercial sectors.
To put in place the “ICO-IDAE Energy Efficiency 2017-2018” credit line, the Ministry signed a collaboration agreement with ICO, the body that will provide the various participating financial institutions with funds of up to EUR 100m to be lent to the projects.
The collaboration agreement states that IDAE, via the National Energy Efficiency Fund, will take on 50% of the risk of the financed operations, with the participating finance institutions assuming the remaining 50%.
For its part, ICO has signed an agreement with the EIB to set up the credit line aiming to provide financing for investments by SMEs wanting to overhaul their production processes and, in the case of cafés, bars and hotels, to replace equipment with more energy-efficient and less polluting alternatives.
Supporting energy efficiency is one of the EIB's priorities, as it is working to implement EU policies on climate action and energy source diversification. This project will also contribute to job and wealth creation, two of the objectives of EIB activity in Spain.
By implementing this credit line, IDAE, ICO and the EIB are joining forces to promote projects and financing platforms that help improve energy efficiency under national and EU strategies.
Of the EUR 100m provided to the credit line, EUR 70m is for SMEs and large companies in the industrial and commercial sectors and EUR 30m to a hospitality “RENOVE” renovation plan.
Loan applications must be made via the participating financial institutions for financing covering up to 100% of the project investment costs, with a maximum of EUR 3m for SMEs and large companies in the industrial and commercial sectors, and EUR 1.5m for hospitality. Projects must be implemented within 24 months in the former case and 12 months in the latter case.
The EIB has signed a EUR 500 million loan agreement with the Instituto de Crédito Oficial (ICO) designed to boost the amount of credit available to SMEs and midcaps (companies with up to 3 000 employees), mainly in the industrial and service sectors.
The EIB has granted a EUR 500 million loan to Spain’s Instituto de Crédito Oficial (ICO) to finance on favourable terms the investment projects and working capital of small and medium-sized businesses, mainly in the industrial and service sectors. ICO will match the EIB loan with the same amount, meaning that a total of EUR 1 billion will be pumped into the small business sector.
Ensuring that credit reaches entrepreneurs and young people wanting to turn their ideas into a business is the objective behind the agreement signed between the European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO). The EIB will provide EUR 400m to ICO, which will in turn contribute an additional EUR 400m of its own, meaning that the financing volume available to micro-enterprises (with ten employees or fewer) and the self-employed will total EUR 800m.