SANTANDER PT LOAN TO SMES & MIDCAPS

Promoter – Financial Intermediary

BANCO SANTANDER TOTTA SA

Location

• Portugal

Description

The operation is a standard multiple beneficiary intermediated loan (MBIL) to finance small and medium sized enterprises (SMEs) and mid-caps in Portugal.

Additionality and Impact

The proposed transaction consists of an intermediated loan with Banco Santander Totta ("BST"), a financially solid promoter and repeat counterparty of the EIB.

The operation will enable BST to finance small and medium-sized investment projects in eligible sectors carried out by SMEs and MidCaps enterprises 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, and it will also target Cohesion Regions.

The energy shock of 2023, due to the war in Ukraine, had long lasting effects on the economy, with energy price volatility and supply chain disruption having induced to high inflation and stagnant growth. Although 2024 was marked by lower levels of inflation and easing monetary policy, economic growth in the Euro Area still appears to be sluggish with potential geopolitical tensions and increased trade protectionism for the year ahead putting pressure on the economy.

The EIB has a critical role in fostering on-lending to SMEs, whose role, also during periods of economic recovery, is key in driving economic growth and sustaining employment (Portugal still reports an employment rate of 6.4%, as of September 2024, higher than the EU average of 5.9%).

Objectives

The aim is to support eligible small and medium-sized investment projects in Portugal.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 325 million

Total cost (Approximate amount)

not applicable

Environmental aspects

The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 7/03/2025