BPI LOAN TO SMES & MIDCAPS AND GREEN INITIATIVES

Promoter – Financial Intermediary

BANCO BPI SA

Location

• Portugal

Description

The proposed loan of up to EUR 300m will be used for financing small and medium-sized enterprises (SMEs), as well as Public Sector Entities, located in Portugal and will have a special focus on Climate Action and Environmental Sustainability projects.

Additionality and Impact

The proposed transaction consists of an MBIL with Banco BPI ("BPI"), a financially solid promoter and repeat counterpart of the EIB. The operation will enable BPI to finance small and medium-sized investment projects in eligible sectors carried out by SMEs, MidCaps and Public Sector Entities ("PSEs") operating in Portugal.

The loan aims to promote and accelerate private sector investments as well as facilitating access to finance for SMEs and Midcaps, a backbone in terms of growth and employment for the Portuguese economy. The operation will help address the working capital, liquidity needs and investment constrains of SMEs, Midcaps, as well as of Public Sector Entities, segments that were particularly affected by the pandemic, and that still remains vulnerable.

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 Midcaps 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 Midcaps 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 for small and medium-sized enterprises (SMEs), as well as Public Sector Entities with a dedication of at least 20% to Climate Action and Environmental Sustainability projects. The loan will target small and medium-sized enterprises (SMEs) and Public Sector Entities located in Portugal with a special focus on subprojects located in cohesion regions. The loan will be intermediated by Banco BPI, a known and financially solid promoter with a positive track record in allocating EIB funds and fully owned by CaixaBank SA, a repeat counterpart of the EIB.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 300 million

Total cost (Approximate amount)

not applicable

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 - 21/06/2024