A foundation to support the European economy and in particular SMEs and mid-caps affected by the pandemic
That EIB Groupto which this also belongs European Investment Bank (EIB) and to European Investment Fund (EIF)has signed with CaixaBank an agreement that provides a guarantee of 112.5 million euros to the Spanish financial institution. The transaction covers the first loss piece in a synthetic securitization structure under the Pan-European Guarantee Fund (EGF). This initiative, managed by the EIB Group, is part of the global package of EU response to COVID-19which has a foundation of 540 billion to the support the European economy and in particular to SMEs and mid-caps affected by the pandemic.
This operation will allow CaixaBank to mobilize more than €1 billion to facilitate Loans to SMEs to develop projectswhich is an agreement contemplating the funding of activities Spain as with others EU Member States. Under this agreement, the Spanish finance company can provide credit for new financing over the next 18 months.
about the deal, the Vice-President of the EIB, Ricardo Mourinho Félix, affirmed: “Supporting small and medium-sized Spanish companies to recover from the enormous impact of COVID-19 is a priority for the EIB Group. We are pleased to write a new page in our collaboration with CaixaBank, with an operation under the Pan-European Guarantee Fund (EGF) which will have the capacity to mobilize more than 1,000 million euros for a more resilient Spanish production fabric in a difficult context where the consequences of the pandemic are combined with circumstances like that Energy Crisis and Inflation“.
Gonzalo Gortazar, CEO of Caixa Bankstressed: “As a leading financial institution in Spain, CaixaBank is committed to supporting the sustainable economic growth in the country. This agreement is an excellent opportunity for the EIB and CaixaBank to join forces with the common goal of helping Spanish SMEs to recover from the negative impact of the pandemic and to implement their investment plans despite the current situation economic uncertainty“.
For his part EIF CEO Alain Godardassured: “We are very pleased to have completed the mandate EGF titrations successfully together with the EIB. It was a strategic mandate for the group with the aim of supporting small businesses in Spain in the current difficult macroeconomic situation we are living in, caused among other things by the COVID-19 pandemic. I want to thank CaixaBank for to support and contribute to such an important mandate“.
The EIB Group guarantee will allow additional capital to be released, which will be used by CaixaBank to provide over €1,000 million in new loans to SMEs, thereby a very significant impact on the SME and small business segment.
This is the second operation in a synthetic securitization structure between the EIB and CaixaBank and the first to cover a first-loss tranche under the EGF, the guarantees of which will come into effect Support for SMEs with investment barriers or pressure on Working Capital and Liquidity.
This agreement is part of a wider collaboration between both entities as CaixaBank is one of the most active EIB intermediaries in Spain. In recent years, operations have been signed targeting specific policies such as innovation and the climate protectionand several pass-through loans for SMEs.
Through agreements like the one presented today, the EIB Group maintains its aim of supporting EU SMEs by facilitating access to credit and Financing that goes beyond the short term.
That European Investment Bank (EIB) is the establishment of long-term funding from the European Union whose shareholders are their Member States. The EIB provides long-term financing for sound investments to help achieve EU policy objectives. The European Investment Bank (EIB) provides long-term loans on behalf of the European Union.
That Pan-European Guarantee Fund (EGF) It was created by the EIB Group with contributions from Spain and other EU Member States to protect companies suffering from the crisis caused by COVID-19. with almost 25 billion euros For guarantees, the EGF allows the EIB and EIF to provide rapid access to loans, guarantees and asset-backed bonds, capital and other financial instruments to companies, mainly SMEs and mid-caps. The EGF is part of the European Union’s recovery package, which is to provide a total of 540,000 million euros boost the hardest-hit parts of the EU economy.
CaixaBank is he leading financial group in Spain. With the integration of Bankia, she has assets of 689,217 million euros, making it the largest bank on the domestic market with a relevant position at European level. In addition, CaixaBank has a strong presence in Portugal, where controls 100% of the BPI. The group, managed by José Ignacio Goirigolzarri and managed by Gonzalo Gortázar, has 20.4 million customers and the largest network of branches and ATMs in Spain and Portugal, and is a leader in digital banking with a base of 11 million digital customers.