Signature(s)
Summary sheet
- Credit lines - Credit lines
The operation will enable Novo Banco (NB) to finance projects carried out primarily by small and medium-sized enterprises (SMEs) and mid-caps operating in Portugal's cohesion regions (which represent the vast majority of the country).
The aim is to enhance access to finance for the target beneficiaries, supporting small/medium sized projects in eligible sectors, including a material Climate Action component.
The operation will enable NB to finance small and medium-sized investment projects in eligible sectors carried out by SMEs and Mid-caps enterprises mainly operating in Portugal as well as Portuguese Public Sector Entities. Due to the reliance in the tourism sector, Portugal was already one of the countries affected by the C19 outbreak, and unemployment rates are slightly above the European Union average. In particular, it will help addressing the working capital, liquidity needs and investment constraints of SMEs and Midcaps mainly located in Portugal, who are currently facing an unprecedented energy crisis a result of the war in Ukraine. The soaring inflation and rise in interest rates could severely set back the emerging post-pandemic economic recovery in Portugal. In particular SMEs and midcaps in a fragile position following the pandemic are poorly positioned to withstand a second major shock.
A sizeable component of this operation (30%) will be dedicated to finance green investments mainly in the areas of smart transportation, as well as other taxonomy aligned initiatives in the renewable energy, sustainable agriculture and manufacturing sectors. Additionally, a significant portion of the on-lending of NB to final beneficiaries will benefit Cohesion Regions, therefore the operation will also contribute to the European Union priorities on Convergence and Social Cohesion, hence reducing regional disparities.
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.