European Investment Bank allows €100 million loan to facilitate climate change adaptation among small and medium-sized enterprises in Catalonia
European Investment Bank and Institut Català de Finances Sign €100m Loan Agreement for Sustainable SME Investments
The European Investment Bank (EIB) and Institut Català de Finances (ICF) have joined forces to support small and medium-sized enterprises (SMEs) and mid-caps in Catalonia with a €100 million loan agreement. This loan is the first tranche of a total approved EIB loan of €200 million, with a second tranche also planned.
The funds will be allocated to Catalan businesses for sustainable projects related to climate transition, sustainability, and climate change adaptation and mitigation. Key areas of investment include renewable energy projects, energy efficiency improvements, electric vehicle investments and infrastructure, circular economy initiatives, and efficient and sustainable waste management systems.
This financing aims to accelerate the green transition of Catalan SMEs, improve their competitiveness, and contribute to a more sustainable economy. It reflects the EIB's priorities of climate action and environmental sustainability by facilitating access to favourable financing conditions for companies committed to these goals.
Vanessa Servera, CEO of ICF, stated that the EIB support enables them to offer Catalan SMEs better financing conditions for sustainable projects and investments. The EIB's role in promoting regional development and social cohesion in Catalonia extends to monitoring projects to ensure their alignment with the bank's objectives.
The EIB checks that the funds are being used in line with the objectives and projections, and keeps itself informed of developments concerning the promoter and its partners. In the case of intermediated financing to SMEs and mid-caps, part of these tasks are undertaken by the financial intermediary (ICF), who commits to allocate funds according to certain previously defined criteria.
The EIB's previous loan agreements with ICF include a €100 million loan for the development of care homes, day centres, and assisted living facilities in the Catalan region, and a €490 million loan for the construction of affordable rental housing with high energy efficiency standards in the Catalan region.
The EIB's partnership with ICF dates back to supporting economic development, green and digital transition, and SME competitiveness. In May, the EIB announced a €100 million loan to support the development of care homes, day centres, and assisted living facilities in the Catalan region.
The loan is expected to enable the ICF to expand the range of new financing available to Catalan businesses to speed up their green transition. While the EIB spokesperson did not comment on the specific monitoring requirements for the €100 million loan agreement between the EIB and ICF, it is known that monitoring requirements for each project are determined according to their characteristics.
References:
[1] European Investment Bank. (2022). Press release: European Investment Bank and Institut Català de Finances sign €100 million loan agreement to support SME investment in sustainability and climate change. Retrieved from https://www.eib.org/en/press/news/2022/2022-eib-icf-sme-loan-agreement.htm
[2] European Investment Bank. (2022). Press release: European Investment Bank and Institut Català de Finances sign €100 million loan agreement to support SME investment in sustainability and climate change. Retrieved from https://www.eib.org/en/press/news/2022/2022-eib-icf-sme-loan-agreement.htm
- The €100 million loan agreement between the European Investment Bank (EIB) and Institut Català de Finances (ICF) will contribute to affordable housing development in the Catalan region, as previous loan agreements between the EIB and ICF have been allocated for the construction of efficient rental housing.
- In addition to climate change initiatives, this latest loan agreement may also support private equity investments in science and environmental-science related projects, considering the EIB's past commitment to fostering economic development and the green and digital transition.
- The EIB's involvement will help Catalan businesses access favorable financing conditions, providing them with the opportunity to invest in renewable energy projects, circular economy initiatives, and waste management systems, which will contribute to the social impact of combatting climate-change.
- Future financing from ICF to SMEs and mid-caps enabled by the EIB loan may involve investments in business sectors that improve sustainability and reduce environmental impact, such as energy efficiency improvements and electric vehicle investments and infrastructure.
