Release date: 9 December 2022
Promoter – Financial Intermediary
BANCO SANTANDER TOTTA SALocation
Description
The linked risk-sharing operation (LRS) (own-resources; full delegation) will support Midcaps in Portugal across all sectors covered by EIB long-term mission. This is a sub-operation under the Programme Loan (PL) LRS - EU PL RISK SHARING INSTRUMENT".
Additionality and Impact
The proposed transaction consists of a fully-delegated linked risk sharing guarantee between the EIB and Banco Santander Totta ("BST"), a financially solid promoter and repeat counterpart of the EIB. The operation will enable BST to finance small and medium-sized investment projects in eligible sectors carried out by Mid-Caps enterprises operating in Portugal.
The guarantee aims to promote and accelerate private sector investments as well as facilitating access to finance for Mid-Caps, a backbone, together with SMEs, in terms of growth and employment for the Portuguese economy. The operation will help addressing the working capital, liquidity needs and investment constrains of Mid-Caps, which have been exacerbated by supply chain constraints, inflation and raising interest rates among others. The economic impacts in the economy have been widespread as value chains have been disrupted and consumer demand has slowed down due to the high inflation rates. SMEs and Mid-Caps are facing financial stress and bankruptcies and, without continuing to address their investment needs, the adverse economic effect of the pandemic could be long-lasting also considering the recent war in Ukraine and the additional challenges for SMEs and Mid-Caps in the form of increased input costs, which cannot be fully passed to end customers, thus creating pressure on margins.
Objectives
The aim is to enhance access to finance to Midcaps in Portugal.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 200 million
Total cost (Approximate amount)
EUR 560 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 - 20/09/2023
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).