Investment & Fund Management

The European Investment Fund (EIF) and Banco Comercial Português (Millennium bcp) entered into two significant agreements in Portugal under the European Commission’s COSME and InnovFin programmes, aimed at enhancing access to finance for small and medium-sized enterprises (SMEs). The primary challenge faced by SMEs in Portugal was limited access to financing, particularly for riskier debt products that could support their growth and innovation.

To address this issue, EIF provided a direct guarantee through the COSME Loan Guarantee Facility, enabling Millennium bcp to offer up to EUR 500 million in loans to over 1,150 small businesses. This initiative allowed the bank to introduce new financing products with improved terms, such as longer maturities and reduced collateral requirements, specifically targeting previously underserved client groups. Additionally, an InnovFin extension agreement was signed, which allocated up to EUR 400 million to support another 750 innovative SMEs and mid-caps, ensuring they could access loans at favorable terms for the next two years.

As a result of these agreements, approximately 1,900 businesses in Portugal are expected to benefit from enhanced funding opportunities, contributing to job creation and economic growth. The EIF's involvement is part of a broader commitment to support SMEs across Europe, with the COSME programme already facilitating over EUR 20.3 billion in financing to more than 380,000 European SMEs. This collaboration not only strengthens the financial capacity of Millennium bcp but also aligns with the European Commission's objectives to boost investment and innovation within the EU.