The EU bank has delivered a €300m loan to Bankinter, which will in turn invest a further €300m into this credit line.

This agreement – the fifth between the two institutions – aims to finance the innovation and equipment modernisation investments of SMEs in the industrial and commerce sector.

To be eligible for the new funding, investment projects must be less than €12.5m for small businesses and less than €25m for midcaps (up to 3,000 employees).

The contract was signed in Madrid by EIB vice-president Rom??n Escolano and Bankinter's CEO, Maria Dolores Dancausa.

Mr Escolano said: “The contract signed shows the EIB's determination to ensure that the advantages of our financing benefit not only large projects and infrastructure, but also small- and medium-sized enterprises, which are vital for creating wealth and jobs for the Spanish economy.

“The EIB is working to guarantee that SMEs have the financing they need to invest in innovation, thereby securing their competitiveness.'

Ms Dolores Dancausa added: “With this new contract, we aim to highlight our bank's commitment to the economic development of small- and medium-sized enterprises.'

Businesses provide 30% of Bankinter's gross margin.

“This is why we are working to finance their commercial projects with the best conditions on the market as well as to provide them with the most innovative management tools available,' added Ms Dolores Dancausa.

The EIB and Bankinter previously signed a contract in 2016 to finance 1,500 companies primarily in the manufacturing, wholesale and retail commerce, and motor vehicle sectors.

The majority of the loan applicants for this credit line were in Valencia, Catalonia, Andalusia, Castilla y Le?³n and the Basque country.