Investment & Fund Management

The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has invested €395 million in an asset-backed securities issue originated by Banco Sabadell. This investment is particularly focused on addressing the financial needs of small and medium-sized enterprises (SMEs) and mid-caps in Spain that have been adversely affected by recent floods. Specifically, up to €200 million of the EIB Group's investment is earmarked to mobilize new financing for these businesses, facilitating their access to essential working capital and liquidity.

The tailored solution provided by the EIB Group involves a significant commitment from Banco Sabadell, which has pledged to finance new projects for SMEs and mid-caps totaling more than twice the amount guaranteed by the EIB Group, potentially channeling around €860 million in loans into the Spanish economy. This operation not only aims to support recovery from the floods but also includes a green component, with Banco Sabadell assembling a portfolio of green loans exceeding €45 million. The overarching goal is to enhance the competitiveness of these businesses while supporting their transition towards more sustainable practices.

As a result of this initiative, the EIB Group is enabling Spanish SMEs and mid-caps to make necessary investments that bolster their resilience and competitiveness. The funds will also support projects aimed at improving public sector irrigation infrastructure, focusing on efficiency in water use, digitalization, and energy improvements. This strategic investment underscores the EIB Group's commitment to fostering economic recovery and sustainability in the wake of natural disasters, while also contributing to broader EU policy objectives related to climate action and environmental sustainability.