BBVA LOAN FOR SMES & GREEN INITIATIVES

Promoteur – Intermédiaire Financier

BANCO BILBAO VIZCAYA ARGENTARIA SA

Lieu

• Espagne

Description

Loan for financing small and medium-sized enterprises (SMEs) or mid-caps, mainly located in Spain, and climate change initiatives.

Additionality and Impact

The operation targets on one hand SMEs & Midcaps affected by the economic impacts of the COVID 19 pandemic and on the other hand it supports the EU's and Bank's priority in the energy sector and the EIB's climate action objectives, through the implementation of energy efficiency projects in residential buildings and industry.

The operation targets to finance SMEs & Midcaps affected by the COVID19 and to deploy such resources via bank intermediation to palliate the adverse effects and limited access to finance of the Pandemic. This finance proves critical to provide financial support to SMEs & Midcaps whose own existence is at risk given the lockdown measures that have been implemented in Spain. Given the economic structure of the Spanish Economy (i.e. tourism, construction, service sector), and that SMEs represent the majority of companies, the adverse economic effects of the pandemic has been particularly acute in Spain and could severely affect employment. EIB participation is critical to unlock financing to SMEs given that the securitization market is completely stalled.

In addition, 50% of the operation (i.e. EUR250m) will target investments in Climate Action initiatives. More specifically EE efficiency investments in industry and buildings, including green mortgages and renovation of multi-apartments buildings.

The Spanish NECP sets out ambitious targets in building renovations and industry until 2030. Until now, building renovation activity in Spain has been very low, in comparison with other countries. In addition to the reduction of carbon and air pollution externalities - a social benefit which is not fully internalised by private investors -, EE projects in buildings and SMEs suffer from relatively high transaction costs due to their fragmentation and small size. The consequence is sub-optimal financing flows into EE investments. The EIB involvement in this project will help to correct this sub-optimal investment situation.

Objectifs

The operation will allow BBVA to finance Climate Action projects as well as SMEs and mid-caps in Spain. On the one hand, approximately 60% of the funds (EUR 300 million) will promote and accelerate private sector investments, and enable improved access to finance to both SMEs and mid-caps. The remainder, (i.e. 40% of the funds or EUR 200 million) will support climate action projects namely in the area of energy efficiency.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 500 million

Coût total (montant approximatif)

not applicable

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 14/06/2022