The European Investment Bank (EIB) and Banco Santander have signed two agreements with Investment Plan for Europe to provide financing for Spanish SMEs and help develop investment in renewable energy .
The first agreement is a new EIB instrument to spread credit risk across both organisations.
This will enable Banco Santander to increase its ability to grant loans to finance new investments from Spanish SMEs.
These SMEs will be able to benefit from the favourable financial conditions made possible by the EIB both in terms of maturity and interest rates.
The EIB involvement in a €500m loan portfolio will help Banco Santander deliver €1bn in financing for SME projects.
This in turn will help to increase the competitiveness of Spanish businesses by driving economic growth and job creation.
The EIB and Banco Santander have also signed another risk-sharing agreement to help Santander finance new renewable energy projects with an investment cost of €400m.
The EIB will also take on a €200m participation in a Banco Santander loan portfolio covering both renewable energy and infrastructure.
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