Release date: 4 November 2021
Promoter – Financial Intermediary
CAIXA ECONOMICA MONTEPIO GERAL CAIXA ECONOMICA BANCARIA SALocation
Description
The proposed operation concerns a guarantee scheme under the European Guarantee Fund (EGF) in Portugal, which will support the financing of mostly mid-caps (also large corporates to a lesser extent) in sectors that have been affected by the COVID-19 pandemic and that are in line with the EIB's long-term mission (innovation; environment; indirect small and medium-sized enterprise (SME) support, through the requirement of creating an additional portfolio).
Additionality and Impact
Linked risk sharing operation under the Pan-European Guarantee Fund (EGF), aiming to alleviate the market disruption caused by the severe Covid-19 crisis in Portugal (severe GDP contraction) by teaming up with local financial intermediaries. The project will provide support to a wide range of Portuguese entities, to ensure they can access sufficient liquidity and finance to weather the Covid-19 crisis, as well as to continue their development in the medium-long term. Liquidity needs are urgent and expected to become even more pressing for many companies whose operations are disrupted by renewed lockdown periods which came into force in many parts of Europe, including Portugal. In addition to addressing liquidity requirements, the project will help in the preservation and creation of employment. The operation will be implemented by Caixa Economica Montepio Geral (Montepio), which has in-depth knowledge of the market and a solid track record with implementing EIB Group guarantee and funding products. The EIB's contribution also rests on introducing an innovative product to the market, as this is one of the first Linked Risk Sharing (through a guarantee on a new portfolio to be created by the Financial Intermediary) transactions under the EGF with a commercial bank in Portugal, expected to be signed by the end of 2021, and sending a signal on the scheme's viability that could help crowd in other financiers to unlock further financing in favor of the beneficiaries.
Objectives
Linked risk-sharing operation under the European Guarantee Fund (EGF) for mid-caps and other eligible entities in Portugal, aiming to mobilise funding resources to respond to the economic impact of the COVID-19 pandemic. The supported final recipients are considered to: (i) be viable in the long-term; (ii) meet the lender's requirements for commercial financing, were it not for the economic impact of the COVID-19 pandemic. In line with the EGF, this is a limited-time intervention.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 116 million
Total cost (Approximate amount)
EUR 380 million
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 23/12/2021
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).