EIF gives a €200 million guarantee to Santander to support innovation and green transition bysmall and medium-sized enterprises (SMEs) and small mid-caps based in Spain and other EU countries.

This agreement was made possible with the support of the InvestEU programme.

Madrid, 27 July 2023.
The European Investment Fund (EIF) and Banco Santander are stepping up their support for small and medium enterprises (SMEs) and small mid-caps with an InvestEU portfolio guarantee agreement for €200 million. These guarantees under the agreement will enable Banco Santander to provide €280 million in new financing to help firms to reach their full potential. The credit line is linked to specific financing products provided by the InvestEU Fund covering two areas: Sustainability, and Innovation and Digitalisation.

The InvestEU Sustainability guarantee is worth up to €135 million. The EIF and Banco Santander will  increase their support for the green transition with this backing, helping beneficiaries to make green, sustainable, and environmentally friendly investments.

The InvestEU Innovation and Digitalisation guarantee is worth up to €65 million. It will allow Banco Santander to further support the growth of Spanish and other European firms working in research and development, and to enhance their access to finance. This initiative will also promote the adoption of new digital technologies among companies of this size.

“Banco Santander is a longstanding partner of the EIF and we are delighted to continue our efforts to help European SMEs navigate the green and digital transition,” highlighted EIF Chief Executive Marjut Falkstedt. “This agreement, made possible by the InvestEU programme, will make financing more accessible for companies that are investing in innovation, digitalisation and sustainable projects, which are among the key drivers for economic development, growth and employment.”

Commissioner for the Economy, Paolo Gentiloni, said: “Small and medium-sized enterprises have long been a key source of growth in Europe. I am delighted that InvestEU is making a substantial impact in this context. This agreement will not only help these businesses create jobs but also enable them to play a crucial role in contributing to a more sustainable, innovative, and digital economy. It will unleash the full potential of businesses in Spain for green growth and employment.”

Banco Santander will primarily deploy the InvestEU guarantee products through its Smart Fund and Santander CIB Structured Finance divisions, providing flexible financing terms to support high-growth SMEs in innovative sectors like digitalisation and sustainability — covering e-commerce, energy tech, renewable energy, energy efficiency, sustainable agriculture and circular economy.