Release date: 26 February 2025
Promoter – Financial Intermediary
BANCO DE SABADELL SALocation
Description
The operation is structured as multiple beneficiary intermediated loan (MBIL) to support projects carried out by Public Sector Entities (PSE), small and medium-sized enterprises (SMEs) and mid-caps in Spain.
Additionality and Impact
MBIL aims to facilitate and support the reconstruction following the severe floods in Spain in 2024, as well as preventive measures to enhance flood resilience against future floods.
Investments include the rehabilitation of impacted urban and municipal infrastructure as well as schemes to address flood risk hazards. The EIB financing mitigates the financial market failure in terms of timing and extent of funds to support recovery following a disaster. The project also delivers more resilient infrastructure to increase the availability and quality of public goods. Furthermore, the envisaged flood risk prevention investments will reduce potential negative externalities such as unavailability of public services following adverse flood conditions damaging the required infrastructure.
The expected contribution to the EIB Climate Action Adaptation objective is estimated at 75%, and the combined Climate Action and Environmental Sustainability contribution is also foreseen at 75% of the investment costs.
The operation is expected to contribute to the strengthening of the EC's economic, social and territorial cohesion. The contribution to the EIB Cohesion objectives is estimated at 11% of the total investment costs for less-developed regions and 44% for transition regions.
Finally, MBIL will contribute to promoting progress toward multiple Sustainable Development Goals, the most significant one being the contribution to climate action (SDG 13).
The Project will target SMEs, MidCaps and PSE and it is eligible as per article 309 (a ) projects for developing less-developed regions and (c ) projects of common interest. the Project falls into the PPG "sustainable energy and natural resources"
Objectives
The objective is to assist PBEs, SMEs, and mid-caps impacted by the severe floods in Spain, as well as those seeking financing from Sabadell to implement preventive measures to improve flood resilience against future floods.
Sector(s)
- Industry - Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 150 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. 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 - 25/03/2025