EIB Group and Banco Santander to unlock €1.2 billion in new financing to back small businesses and mid-caps in Spain

• The EIB Group has invested €530 million in a Banco Santander asset-backed securitisation operation.
• The EIB Group investment will enable Banco Santander to unlock almost €1.2 billion, contributing to finance green and women's entrepreneurship projects, among others.
• The operation contributes to EIB Group priorities such as climate action, cohesion, and the development of the European securitisation market.

The EIB Group (European Investment Bank and European Investment Fund) has invested €530 million in senior and mezzanine tranches of a new Banco Santander asset-backed securitisation operation. The EIB Group's investment in “Santander Consumo 6 consumer credit securitisation fund” will support Spanish small and medium-sized enterprises (SMEs) and mid-caps, enabling Banco Santander to channel close to €1.2 billion to the real economy.

With this agreement, the EIB Group and Banco Santander will make it easier for SMEs and mid-caps to access finance to meet their working capital and liquidity needs and mitigating the negative investment impact of inflation, high energy prices and high interest rates. This new transaction will support competitiveness, job creation and the retention of human capital. The agreement also supports the development of the European securitisation market, a particularly important market for the Capital Markets Union.

Under the operation, the European Investment Bank (EIB) will make an investment commitment of €500 million, while the European Investment Fund (EIF) will commit €30 million. The entire EIB Group investment is being made through a single securitisation in which other private investors have also participated.

The EIF’s €30 million investment is linked to the creation of an additional €60 million loan portfolio by Banco Santander. At least 50% of the loans in this portfolio will go to Spanish SMEs and mid-caps implementing projects in the areas of environment and climate action, energy efficiency and women’s entrepreneurship. This is the first time that the latter area has been included in EIB-Group-Banco Santander securitisation operations.

“This new loan is another step forward for the EIB and Banco Santander in offering financing opportunities to SMEs and mid-caps in Spain, while also promoting and accelerating private sector investments,” said Director of the EIB’s Financial Institutions Department Birthe Bruhn-Léon. “The EIB's participation in Banco Santander’s new securitisation will contribute to growth and job stability in Spain, with a particular focus on economic, social and territorial cohesion, which is one of the EIB's priorities.”

It is estimated that over half of the final beneficiaries of the agreement are in cohesion regions, where per capita income is below the EU average. In this way, the operation will promote fair growth and convergence between EU regions, a key objective of the EIB’s lending.

“SMEs and mid-caps are crucial for economic development and employment in Spain and across Europe. At the EIF, we are happy to help provide new financing solutions for this segment, and this new investment reflects our commitment to backing green projects and promoting women’s entrepreneurship,” added EIF Director of Guarantees, Securitisation and Inclusive Finance Marco Marrone.

Catalina García Mejía, Santander Spain's Chief Financial Officer, said: "With this new operation with the EIB Group, Santander continues to support Spanish SMEs so that they can grow their businesses in the best possible way. With a 25% market share in SMEs, making us Spain's leading bank, Santander has always been very aware of its role as a catalyst for credit to the real economy, which is why our commitment to Spain's businesses is absolute and why we are committed not only to backing their projects but also to offering them the best possible service".

Background information

About the EIB Group

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group (EIB Group). Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

About Banco Santander

Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial bank, founded in 1857 and headquartered in Spain, and is one of the largest banks in the world by market capitalisation. The Group's activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This model enables the bank to better leverage its unique combination of global scale and local leadership. Santander aims to be the best open financial services platform providing services to individuals, small and medium-sized enterprises (SMEs), corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first quarter of 2024, Banco Santander had €1.3 trillion in total funds, 166 million customers, 8.400 branches and 211.000 employees.

Press contacts

EIB Group

Maite Cordero | m.corderomunoz@eib.org | tel.: +34 606 66 82 62

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

Banco Santander

Corporate Communication, comunicacion@gruposantander.com tel.: +34 91 2895211