EIB boosts investment commitments in Portugal with a focus on companies and green transition

• Portugal received new financial commitments from the EIB Group in 2023 totalling more than €2.1 billion, more than 25% increase from the year before.
• Portugal was among the top seven recipients of EIB support as a percentage of gross domestic product.
• Backing for small businesses and mid-caps exceeded €1 billion.
• Cohesion financing accounted for more than 66% of the Group's investment in Portugal.

Portugal benefited from more than €2.1 billion in new financial commitments from the European Investment Bank Group (EIB Group) in 2023, more than 25% increase from the year before, with about half going to small businesses and mid-caps.

The Group, composed of the European Investment Bank (EIB) and European Investment Fund (EIF), also provided transformative support for sustainable energy, natural resources, digital technologies, innovation and cohesion regions. 

"The EIB Group delivered excellent results in Portugal in 2023. Our investments boosted the competitiveness of the Portuguese economy and have an impact on the ground, increasing social and economic cohesion and fostering a green economy”, said EIB President Nadia Calviño. “We are reinforcing our support to small and medium enterprises, at the core of the Portuguese economy, making them an engine for economic growth, job creation and sustainable development."

Portugal remained one of the EIB Group's top seven beneficiaries in terms of gross domestic product, with financing last year representing 0,8% of Portuguese GDP. The operations supported by the Group made it possible to mobilise a total financing of approximately €7.7 billion.

In 2023, the EIB committed €1.8 billion to finance large-scale projects that improve infrastructure and contribute to the country's employability and sustainable growth, while promoting climate action and environmental sustainability. For its part, the EIF contributed €366 million to stimulate innovation and business growth.

Strong backing across the EIB public policy goals

The EIB Group financing for small and medium-sized enterprises and mid-caps amounted €1.02 billion, more than double that provided in 2022. More than 19 000 Portuguese companies received support within this line of action. The EIB signed in 2023 agreements with Santander, novobanco and Millennium bcp aimed at mobilising €2.3 billion in new financing to boost competitiveness of Portuguese small and medium-sized companies and mid-caps. The EIF contributed transactions totalling €366 million, mobilising around €1.2 billion in financing. 90% of these investments were made in the form of guarantees and securitisation operations.

Portugal saw more than 70% increase (to €282 million) in EIB investment for innovation, digitalisation and human capital. A good example of the EIB's commitment to this public policy objective was the €99 million financing dedicated to research, innovation, education and business development, part of the second tranche of the framework loan signed with Portuguese government under the umbrella of the Partnership Agreement between Portugal and the EU for the implementation of the European Structural Funds.

EIB Group support for sustainable energy and natural resources totalled €604 million. The different projects in this area include the €115 million financing agreement with The Navigator Company to support the construction and operation of a high-efficiency recovery boiler at the Setúbal industrial complex. This investment will reduce direct carbon-dioxide emissions by around 136 000 tonnes a year.

In 2023, the EIB invested €209 million in Portugal under its sustainable cities and regions public policy goal. Together with Portuguese officials and businesses, the EIB remains committed to helping cities and regions become more environmentally sustainable and resilient. As an example, the Bank signed a €24 million finance — the first part of a €100 million framework loan — with the municipality of Loures for development of living conditions, promote economic growth and enhance climate adaptation. The EIB also committed €90 million to this priority as part of the framework loan with the Portuguese government for the implementation of the European Structural Funds.

Strengthen commitment with the green transition and cohesion

In 2023, EIB Group reinforced commitment in Portugal with the climate action and environmental sustainability and the economic and social cohesion, the Group’s two transversal lines of activity.

The EIB continued to increase the green financing in the country, up 4% from the previous year. In 2023, EIB's cross-cutting commitment to projects that contribute to the fight against climate change and support environmental sustainability reached €746 million. A good example of green financing is the EIB Group and Santander securitisation operation to support the financing of energy efficiency in the rehabilitation of buildings and the construction of sustainable buildings. As part of the transaction, the EIB Group is providing Santander with a guarantee of €81 million that will enable it to finance new investments in energy efficiency totalling €162 million.

In 2023, cohesion financing by the EIB Group in Portugal totalled €1.41 billion, more than 66% of the total. Among other investments, the EIB provided a €60 million loan to the Port of Leixões to improve access by deepening the port’s channel and extending its breakwater. The project, located in an EU cohesion region, will improve the transport of people and goods, guarantee access to jobs and services and boost trade and economic growth.

More information on the EIB Group's annual results and activity in Portugal in 2023.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.