CAIXABANK RISK SHARING SMES AND MIDCAPS II

Promoter – Financial Intermediary

CAIXABANK SA

Location

• Spain

Description

The project consists in a de-linked risk sharing guarantee, under a partial delegation approach, covering up to 50% of the credit risk of Caixabank's loan portfolios to small, medium sized enterprises (SMEs) and mid-caps in Spain.

Additionality and Impact

The proposed transaction consists of a delinked risk sharing guarantee between CaixaBank and the EIB, under a partial delegation approach. The guarantee aims to promote and accelerate private sector investments as well as facilitating access to finance for SMEs & Midcaps, a backbone in terms of growth and employment for the Spanish economy. The operation will help address the working capital, liquidity needs and investment constrains of SMEs & Midcaps, a segment that remains vulnerable in the current inflationary environment.

Overall, high inflation levels can create significant challenges for SMEs & Midcaps, making harder for them to sustain their operations and grow their businesses, while unemployment rate remains high in Spain, specially for the youth. The economic and financial uncertainties are leading to lower investor confidence and higher volatility in funding spreads, translating into tighter credit conditions, reduced lending, and more expensive funding for SMEs & Midcaps.

Risk Sharing operations allow financial intermediaries to reduce their risk weights, risk concentrations, their perception of risk and, more importantly, to create headroom in their balance sheets to provide more lending. This is crucial in a context where banks have more restrictions to increase their balance sheet in the context of new regulatory requirements, which may restrict new lending.

Objectives

The aim is to promote and accelerate private sector investments, by enhancing access to finance for SMEs and mid-caps, a backbone for the Spanish economy in terms of growth and employment.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 450 million

Total cost (Approximate amount)

EUR 1260 million

Environmental aspects

In accordance with the EIB's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, Caixabank has to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries, will comply with the relevant EU legislation and the applicable national legislation, provided that these are in line with EU rules.

Procurement

In accordance with the EIB's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, Caixbank has to to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries, will comply with the relevant EU legislation and the applicable national legislation, provided that these are in line with EU rules.

Status

Signed - 25/06/2024