CAIXABANK ENHANCED SME & MIDCAP SUPPORT ABS

Purchase of a mezzanine tranche of a true-sale consumer securitisation in order to stimulate lending to small and medium sized enterprises and mid-caps.

The operation aims to support investments carried-out by small and medium sized enterprises and mid-caps.

The operation consists of a purchase of a mezzanine tranche of a true-sale consumer ABS issued by CaixaBank. Securitisations allow financial intermediaries to reduce their risk weights and create headroom in their balance sheets to provide more lending, which is crucial in a context where banks have more restrictions to increase their balance sheets.

The operation aims to promote and accelerate private sector investments as well as facilitating access to finance for SMEs & Midcaps, a backbone in terms of growth and employment for the Spanish economy. The operation will help address the working capital, liquidity needs and investment constraints of SMEs & Midcaps, a segment that remains vulnerable in the current challenging economic environment. The project is therefore eligible under Article 309 point (a) projects for developing less developed regions and point (c) common interest.

Given that the EIB will be investing in a capital market instrument, the operation will also support the objective to advance in the Capital Markets Union (CMU).

The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The borrower / financial intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.