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Signature(s)

Amount
€ 400,000,000
Countries
Sector(s)
Spain : € 400,000,000
Credit lines : € 400,000,000
Signature date(s)
24/06/2021 : € 400,000,000
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Summary sheet

Release date
11 November 2020
Status
Reference
Signed | 24/06/2021
20200774
Project name
Promoter - financial intermediary
BBVA EGF ENHANCED SUPPORT TO MIDCAPS
BANCO BILBAO VIZCAYA ARGENTARIA SA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 400 million
EUR 1307 million
Location
Sector(s)
Description
Objectives

Operation under the European Guarantee Fund (EGF) to support Spanish small and medium-sized enterprises (SMEs), mid-caps and large corporates in sectors that are in line with the EIB's long-term mission (SME support, innovation, and environment) affected by the COVID-19 pandemic.

The project consists of an unfunded risk participation scheme under a full delegation approach by which the EIB will cover up to 75% of the losses in respect to each defaulted loan of a non-granular portfolio of corporate and mid-cap loans. While access to finance had somewhat improved since the financial crisis, it has again become a critical issue as a result of the COVID-19 crisis, due to both rapid demand and rising constraints on the side of intermediary banks. These constraints are idiosyncratic and only partly addressed, e.g. through measures of the ECB, which is providing unprecedented amounts of liquidity support in the euro-area countries. A pressing constraint for financial intermediaries is lending capacity, particularly as the economic crisis will lead to substantial downgrades in their existing lending books and corresponding increases in their minimum capital requirements. This leads to a vicious circle of a pro-cyclical shift of remaining lending capacity into "lower-risk" assets, which was a main contributor to the last financial crisis. Therefore, the objective of the operation is to provide liquidity and financing for projects to mid-size and large companies within the context of the COVID-19 pandemic.

Environmental aspects
Procurement

In accordance with the Bank's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, the Bank will require the intermediary to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries for the sub-projects that the Bank finances will comply with the relevant EU legislation and the applicable national legislation, provided that it is in conformity with EU rules.

In accordance with the Bank's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, the Bank will require the intermediary to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries for the sub-projects that the Bank finances will comply with the relevant EU legislation and the applicable national legislation, provided that it is in conformity with EU rules.

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Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

General enquiries and comments

The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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