EIF guarantee of up to €154 million to ABANCA to leverage up to €220 million in support for SMEs impacted by the COVID-19 crisis in Spain.
The agreement is backed by the Pan-European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved in the wake of the COVID-19 pandemic.

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, and ABANCA have joined forces to back the growth and development phase of Spanish small and medium-sized companies (SMEs) hit by the economic crisis generated by COVID-19.

The EIF will provide a €154 million uncapped guarantee to ABANCA, enabling the Spanish bank to originate a portfolio of €220 million of financing for Spanish SMEs to mitigate the economic consequences of the pandemic. The agreement is backed by the European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved to respond to the economic impact produced by the pandemic.

Thanks to the EIF guarantee under the EGF, ABANCA will offer more favourable financing to SMEs and small mid-caps active in sectors particularly exposed to the COVID-19 pandemic, backing their recovery from liquidity shortages and safeguarding jobs in the country. The EIF will take up to 70% of the risk on these new loans granted to SMEs by the Spanish bank.

“I am delighted to join forces with ABANCA to mobilise up to €220 million of financing for small businesses to mitigate the negative economic effects of the pandemic in Spain. Entrepreneurs are worried about the impact of COVID-19, the liquidity position, and the survival of SMEs,” said Alain Godard, Chief Executive of the EIF. “The EIB Group launched the European Guarantee Fund to overcome these constraints, enhancing SMEs’ access to finance on favourable conditions to promote growth, innovation and employment across Europe.”

“The European Guarantee Fund is delivering the liquidity needed by small and medium-sized companies to cope with the economic shock caused by COVID-19, which is affecting 96% of Spanish SMEs. We are on the right track and, thanks to our wide network of intermediaries, we aim to reach as many companies as possible both in Spain and in Europe,” stated EIB Vice-President Ricardo Mourinho Félix.

Francisco Botas Ratera, CEO of ABANCA, indicated that: “It is a priority for ABANCA to help companies to offset the effects of the pandemic and establish the foundations for future economic growth. For this reason, we have been very active in mobilising all the lines available to our corporate clients, which have always been a fundamental and strategic sector for our entity and for the economic development of our society. Our ability to develop this objective is supported by the solid positioning we have with SMEs and companies and by our reach.”

Background information

About the European Investment Fund (EIF)

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

The European Guarantee Fund (EGF) was created by the EIB Group with contributions from all 27 EU Member States to protect companies that are struggling in the crisis caused by COVID-19. With almost €25 billion in guarantees, the EGF allows the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the European Union, with the objective of providing a total of €540 billion to support the hardest hit sectors of the EU economy.

About ABANCA

ABANCA is the leading financial entity in the north-west of Spain. It has 706 branches in 11 countries across Europe and America, 6 091 employees and a turnover of more than €100 billion. Its differential offer combines personal attention and transactions through digital and remote channels. ABANCA bases its activity on the knowledge of customer needs and in a catalogue of simple, innovative and transparent products and services. The specialisation, internationalisation and sustainability are other hallmarks of a bank ranked among the most solvent of the sector in Spain. Learn more at: www.abanca.com.

Press contacts

EIF:

Lorenzo Squintani, tel.: +352 691 285 772, l.squintani@eib.org
Website: www.eif.org – Press office: +352 4379 21000 – press@eib.org
Follow us on Twitter @eif_eu

ABANCA:

comunicacion@abanca.com
Website: www.abanca.com Telephone: +34 981188022 986828070