EIF and BBVA Portugal to back the investments needs of Portuguese SMEs

• EIF guarantee of up to €21 million to BBVA Portugal to leverage up to €30 million in support for SMEs impacted by the COVID-19 crisis in Portugal.
• Over 60 SMEs to benefit from this agreement.
• 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 Group, and BBVA Portugal has signed an agreement to support Portuguese small and medium-sized companies (SMEs) hit by the economic crisis generated by the pandemic.

The EIF will provide a €21 million guarantee to BBVA Portugal, enabling the bank to originate a portfolio of €30 million of financing for Portuguese SMEs. The agreement is backed by the European Guarantee Fund (EGF), part of the €540 billion EU rescue package deployed to respond to the economic impact caused by the pandemic.

Thanks to the EIF guarantee under the EGF, BBVA Portugal will offer more favourable financing to Portuguese SMEs, 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 Basque bank. It is estimated that over 60 Portuguese businesses will benefit from this agreement.

Alain Godard, Chief Executive of the EIF, stated: “We are delighted to join forces once again with BBVA, this time with their Portuguese subsidiary, to support the economic recovery of small and medium-sized companies. Over 60 Portuguese businesses will benefit from this agreement, which aims to activate investments for over €30 million.”

“EIB Group and the BBVA Group enjoy a solid relationship, which started more than 30 years ago. This operation, which backs the investment of Portuguese SMEs, follows the one recently announced through which the EIB Group and BBVA committed to supporting Spanish SMEs affected by the pandemic,” said  EIB Vice-President Ricardo Mourinho Félix.

Luis Castro e Almeida CEO BBVA Portugal considers that “this partnership with the EIF is another clear sign of BBVA's commitment to the Portuguese economy by supporting companies, in this case SMEs, which with this additional help will see their investment capacity and consequently growth strengthened.”

Background information:

About the European Investment Fund (EIF)

The European Investment Fund is part of the European Investment Bank Group. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. [SL1] The EIF is also active in supporting Climate and Infrastructure fund investments with a strong focus on climate action & environmental sustainability. Through its activities, the EIF fosters EU objectives in support of countering climate change as well as fostering innovation, research and development, entrepreneurship, growth and employment.

The European Guarantee Fund (EGF) was created by the EIB Group with contributions from Portugal and other EU Member States to protect companies that are struggling in the crisis caused by COVID-19. With almost 25 billion euros 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 euros to support the hardest hit sectors of the EU economy.

About BBVA

BBVA is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico and it has leading franchises in South America. It is also the leading shareholder in Türkiye’s Garanti BBVA and has an important investment, transactional and capital markets banking business in the U.S.

Its purpose is to bring the age of opportunities to everyone, based on our customers’ real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

Press contacts:

EIF:

Lorenzo Squintani, tel.: +352 691 285 772, l.squintani@eib.org

Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org

BBVA Portugal:

Andreia Madeira - Tel +351 961 023 269 – andreia.madeira@bbva.com

For more BBVA news visit: https://www.bbva.com