BST FOCUSED SUPPORT FOR SMES & MIDCAPS

Promoteur – Intermédiaire Financier

BANCO SANTANDER TOTTA SA

Lieu

• Portugal

Description

The project concerns a multi-beneficiary intermediated loan (MBIL) to provide additional loans to small and medium sized enterprises (SMES) and MidCaps in Portugal. In detail, the financial operation consists in purchasing investment grade tranches of a true sale securitistion of consumer loans.

Additionality and Impact

Given the current market conditions, the proposed operation would most likely not take place without EIB's participation, preventing the Portuguese economy from benefiting from new lending (through the New Portfolio).

By transferring the credit risk of the securitised portfolio, the proposed operation would reduce the risk-weighted assets of the Promoter. The capital relief provided would increase the Promoter's credit capacity and allow for the origination of new loans to Final Beneficiaries. Such additional lending is expected to enhance access to finance for Portuguese SMEs and Mid-caps at improved terms. The proposed operation addresses the market failure related to SMEs' and Mid-caps' access to finance while the overall economy is recovering from the negative impact of the COVID-19 pandemic and the current macroeconomic shocks due to the Ukrainian war and high energy costs, as well as inflation that continues to put the Portuguese companies under stress.

A significant portion of the New Portfolio is expected to be located in Cohesion Regions. The operation will thus also contribute to the European Union priorities on convergence and social cohesion, helping reduce regional disparities.

This operation will respond to the suboptimal investment situation in the securitisation market. The securitisation market has been slowly recovering from the relatively low volumes experienced during the COVID-19 crisis. Unlocking and reactivating this market through EIB participation is critical to allow banks to continue lending to SMEs and Mid-caps.

Objectifs

The loan will be used for the financing of small and medium-sized investment projects in eligible industry and services sectors. A minimum 70% of the loan will be used to finance SMEs.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 410 million

Coût total (montant approximatif)

not applicable

Aspects environnementaux

The projects financed under this operation will need to comply with domestic and EU applicable legislation, as appropriate.

Passation des marchés

The projects financed under this operation will need to comply with domestic and EU applicable legislation, where applicable.

Statut

Signé - 28/09/2022