- Through its subsidiaries – the European Investment Bank and the European Investment Fund – the EIB Group has participated in a mortgage bond and a securitisation transaction arranged by Sabadell, investing a total of €822 million.
- The investment will enable Sabadell to allocate approximately €1.8 billion to financing the liquidity and investment needs of small and medium-sized enterprises and mid-caps in Spain.
- Up to €180 million will go towards financing companies to aid reconstruction following the severe floods that struck Spain at the end of 2024, and to support preventive measures to improve resilience against future flooding.
- Up to €100 million is aimed at financing small and medium businesses, mid-caps and public entities such as irrigation associations operating in the agricultural sector.
- The operation will boost Spanish companies’ competitiveness and contribute to the EIB Group’s strategic priorities of climate action and environmental sustainability and stronger EU capital markets.
The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has participated in a mortgage bond and a securitisation transaction arranged by Sabadell, investing a total of €822.5 million. The investment will enable Sabadell to mobilise approximately €1.8 billion to finance the liquidity and investment needs of small and medium-sized enterprises (SMEs) and mid-caps in Spain.
Sabadell’s mortgage bond will help companies access financing to cover their liquidity needs and make investments, with a portion of the funds earmarked for green projects. This financing will mainly go to companies in cohesion regions, where per capita income is below the EU average. The EIB is investing €500 million in this bond, enabling Sabadell to unlock around €1 billion in new financing for small and medium businesses and mid-caps. Of this €500 million, up to €180 million is earmarked for projects by companies affected by the floods that hit Spain at the end of 2024, and for preventive measures to avoid future flooding. Additionally, up to €138 million will be allocated to financing small and medium businesses, mid-caps and public sector entities such as irrigation associations operating in the agricultural sector. This financing for irrigation communities will enable Sabadell to support projects led by public sector entities in Spain to rehabilitate, modernise and upgrade existing infrastructure for more efficient water use.
The securitisation transaction will also channel financing to cover the working capital and liquidity needs of small and medium businesses and mid-caps, while improving their access to vital investments that strengthen competitiveness. The EIB Group has invested €322 million in this securitisation transaction, with €270 million contributed by the EIB and €52.5 million by the EIF in the senior tranche. The EIF investment also features a green component under which Banco Sabadell will put together a portfolio of green loans totalling over €52 million. The securitisation meets the simple, transparent and standardised (STS) criteria in line with EU securitisation standards, helping to foster a robust and efficient capital market.
“These agreements with Sabadell will make it easier for Spanish small and medium businesses and mid-caps to access the financing they need to cover their working capital requirements and invest in the green transition and competitiveness. They will also help to strengthen EU capital markets, aid reconstruction efforts following the severe floods in Spain in 2024 and support preventive measures to improve resilience against future flooding. By providing financing to irrigation communities, the operation will also promote agricultural projects to modernise infrastructure and achieve more efficient water use.,” said Gemma Feliciani, director of Financial Institutions at the EIB.
“Our latest collaboration with Sabadell reinforces the strong commitment of both institutions to support Spanish small and medium-sized enterprises by improving their access to finance. With this operation, we are moving forward together towards a more responsible, inclusive economic model aligned with the European Union’s climate objectives," said EIF Chief Executive Marjut Falkstedt.
“This agreement with the EIB Group reinforces Banco Sabadell's long-standing commitment to Spanish small and medium businesses and mid-caps, ensuring their liquidity and investment needs are met at critical moments for growth or recovery. With €1.8 billion mobilised, we will be able to provide decisive essential support for reconstruction in the wake of past recent climate events and pave the way towards a more sustainable production model. Banco Sabadell is proud to collaborate with the EIB and EIF in an agreement that highlights our commitment to climate action and support for small and medium businesses and mid-caps, thereby strengthening European capital markets and long-term economic development,” added Eduardo Currás, deputy general manager and head of Corporate Banking at Banco Sabadell
These agreements with Sabadell once again demonstrate the EIB Group’s role in promoting financial instruments like securitisation transactions, helping to unlock capital to boost projects that support small and medium businesses, reduce risk exposure for financial institutions and strengthen the EU capital markets union, which is one of the EIB Group’s eight strategic priorities. They will also contribute to other EIB Group strategic priorities, including climate action and environmental sustainability, economic, social and territorial cohesion, and support for the bioeconomy and agriculture across the European Union.
From left to right: Karen Huertas, head of Securitisation South and West Europe at the EIF, Eduardo Currás, deputy general manager and Director of Corporate Banking at Banco Sabadell and Gemma Feliciani, director of Financial Institutions at the EIB.
Background information
About the EIB Group
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, it finances investments that pursue EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.
In Spain, the EIB Group signed new financing worth €12.3 billion for over 100 high-impact projects in 2024, contributing to the country’s green and digital transition, economic growth, competitiveness and better services for its people.
High-quality, up-to-date photos of EIB headquarters for media use are available here.