Investment & Fund Management

The European Investment Fund (EIF) and the Catalan Finance Institute (ICF) have entered into a significant partnership to address the financing challenges faced by small and medium-sized enterprises (SMEs) and mid-caps in Catalonia, particularly in the realm of sustainability projects. The specific issue at hand was the need for enhanced financial support for businesses aiming to implement climate change mitigation strategies and improve their environmental impact.

To tackle this, the EIF and ICF signed a limited portfolio guarantee agreement worth €40 million, which is expected to mobilize up to €57 million in total financing. This initiative is backed by the InvestEU programme, which aims to facilitate substantial investments in line with EU policy priorities. The tailored solution provided through this agreement allows ICF to enhance the conditions of its EcoVerda loans, thereby enabling more businesses to access the necessary funds to scale up their climate-related projects. These projects may include efforts to reduce carbon footprints, improve energy efficiency, and promote the use of electric vehicles.

As a result of this collaboration, ICF has already financed 84 businesses and organizations since 2018, distributing €167.6 million in EcoVerda loans specifically aimed at environmental benefits. This partnership not only exemplifies the commitment to sustainable development in Catalonia but also showcases the EIF's role in supporting the growth of SMEs through innovative financial instruments tailored to meet specific market needs.