BBVA ENHANCED SUPPORT TO SMES&MIDCAPS II

Promoteur – Intermédiaire Financier

BANCO BILBAO VIZCAYA ARGENTARIA SA

Lieu

• Espagne

Description

De-linked risk sharing guarantee aimed at providing new lending to small and medium-sized enterprises (SMEs) and mid-caps affected by the COVID-19 pandemic in Spain. The guarantee facility will be used to cover up to 50% of the credit risk associated with a Spanish bank's corporate and mid-cap loan portfolios.

Additionality and Impact

The proposed operation loan promotes the strategic EU objective to support SME and Midcap financing, and within the context of the COVID19 Pandemic. SMEs and Midcaps represent approx. 99% of all companies in Spain, and generate close to 74% of employment, a larger proportion than in other Member States such as Germany or the Netherlands, where they generate 62.5% and 66.7% of employment, respectively. Their smaller size entails significant vulnerability and growth constraint, since it represents barriers to credit access, innovation, digitalisation and investment capacity, internationalisation and, hence, overall growth.

This operation will help ensure SMEs and Midcaps' access to finance at favourable rates and tenors, much needed by small and medium-sized promoters, which usually face tougher conditions when accessing credit markets. The project will contribute to a better market coverage of SME and Midcap financial needs in Spain and the EU, and to a further reduction in the EU market fragmentation in SME and Midcap financing where Spanish companies still lag. In the current environment, where market conditions for banks are largely dependent on the duration of the monetary stimulus, the EIB support to the SME and Midcap sector is important for continued and stable investment activity.

Objectifs

Spain is currently one of the European countries most affected by the coronavirus pandemic, given the reliance of its economy on the tourism and service sectors. SMEs and mid-caps are facing financial stress and bankruptcies and without addressing their short-term liquidity and investment needs, the adverse economic effect of the pandemic could be long-lasting.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 371 million

Coût total (montant approximatif)

EUR 760 million

Aspects environnementaux

In accordance with the Bank's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, the Bank will require the intermediary to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries for the sub-projects that the Bank finances will comply with the relevant EU legislation and the applicable national legislation, provided that it is in conformity with EU rules.

Passation des marchés

In accordance with the Bank's policy to ensure that sub-loans comply with the EU acquis, in particular in the fields of environment and public procurement, the Bank will require the intermediary to take all the requisite measures to ensure that the environment and procurement procedures carried out by the final beneficiaries for the sub-projects that the Bank finances will comply with the relevant EU legislation and the applicable national legislation, provided that it is in conformity with EU rules.

Statut

Signé - 22/12/2022