EIF and Banca March to unlock €300 million for Spanish companies impacted by COVID-19
08 November 2021 Category: Agreements
The agreement will facilitate access to finance at advantageous conditions for more than 350 small businesses affected by the pandemic,while safeguarding employment levels.
- EIF guarantee of €210 million to Banca March to mobilise €300 million to support SMEs and small mid-caps in Spain.
- The agreement is supported by the Pan-European Guarantee Fund, part of the European Union's €540 billion package to address the economic impact of COVID-19.
The European Investment Fund (EIF), part of the European Investment Bank Group, joins forces with Banca March to promote the economic recovery of Spanish small and medium-sized enterprises (SMEs) mainly located in the Balearic Islands. The EIF will grant a guarantee of up to €210 million which, when combined with Banca March’s financing, will amount to €300 million.
It is estimated that the agreement signed will facilitate access to finance at advantageous conditions for more than 350 small businesses affected by the pandemic, thereby also safeguarding employment levels.
This agreement between Banca March and the EIF falls under the Pan-European Guarantee Fund, part of the European Union's €540 billion package to address the economic impact of COVID-19.
Thanks to the Pan-European Guarantee Fund (EGF), Banca March will be incentivised to provide debt financing to SMEs and small mid-caps at favourable terms, ensuring that Spanish companies have sufficient financing available to mitigate the economic impacts of the COVID-19 crisis, and are able to continue their growth and development in the medium to long term. The EIF will provide a 70% guarantee on a portfolio of new lending.
EIF Chief Executive Alain Godard, stated: “We are proud to join forces with Banca March to mobilise financing solutions tailored to the requirements of Spanish SMEs and mid-caps affected by the pandemic. The Pan-European Guarantee Fund is delivering the liquidity needed by small and medium-sized companies in this critical moment.
EIB Vice-President Ricardo Mourinho Félix said: “Back in December 2020, Banca March was the first bank to reach an agreement with the EIB Group under the Pan-European Guarantee Fund. This is yet another example of the EIB Group’s commitment to support Spain’s financial institutions in creating new credit lines for small businesses in the context of the COVID-19 recovery. By collaborating with Banca March, we can reach numerous companies affected by the pandemic in the Balearic Islands and throughout Spain by providing the liquidity to back their investment needs in the medium to long term.”.
CEO of Banca March, José Luis Acea, said: “As a bank specialised in advising companies, family businesses and business families, since the beginning of the pandemic we have strengthened our commitment to promoting the key role of family businesses in the economic recovery and job creation. We are particularly pleased to be collaborating with the EIF in the Balearic Islands – the birthplace of Banca March. Thanks to these agreements, we will be able to continue supporting businesses and entrepreneurs as they deal with the major challenges caused by COVID-19, facilitating and collaborating on projects that will underpin their crucial role at this time.”.