Signature(s)
Summary sheet
- Water, sewerage - Agriculture, forestry and fishing
- Credit lines - Credit lines
The loan will finance projects carried out by small and medium-sized enterprises (SMEs), Midcaps and - to a lesser extent - water user associations ("comunidades de regantes") having the status of public sector entities in Spain.
The aim is to enhance access to finance for the target beneficiaries through a well-known and financially solid intermediary with a proven track-record in allocating EIB funds.
The operation will help address the working capital, liquidity needs, and investment constrains of SMEs and Midcaps in Spain during a period of economic uncertainty. The challenges faced include elevated interest rates, core inflation, subdued domestic consumption, energy security issues and the ongoing war in Ukraine. Up to 20% of the projects are expected to finance eligible investments carried out by water user associations, targeting the rehabilitation, modernization and upgrading of the current infrastructure for higher efficiency in water, digitalisation and energy use.
The economic impacts are widespread, as value-chains have been disrupted and consumer demand has slowed down. SMEs and Midcaps are facing financial stress and bankruptcies and without addressing their short-term liquidity and investment needs, the adverse economic effects could be long-lasting. The project will promote adaptation to the adverse impacts of climate change, enhancing environmental features (water efficiency), while creating new permanent jobs in the infrastructure operation and at farm level.
The project is therefore eligible under Article 309 point (a) projects for developing less developed regions and point (c) common interest and will contribute to the vertical Policy Goals SMEs/Midcaps (80%) and Sustainable energy and natural resources (20%) and to horizontal PPGs Economic and Social Cohesion (50%) and Climate Action and Environmental Sustainability (12%).
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.