EIB acts as guarantor on €576m Banco Sabadell Spanish SME securitization

The European Investment Bank (EIB) and its subsidiary the European Investment Fund (EIF) have acted as guarantors on a loan portfolio securitization originated by Banco Sabadell to provide €576 million of support for small and medium-sized enterprises (SMEs) in Spain.

Posted Monday, September 14th 2020
EIB acts as guarantor on €576m Banco Sabadell Spanish SME securitization

Werner Hoyer

The EIB is joining forces with Banco Sabadell to support SMEs that were negatively affected by the economic impact of the coronavirus. The EIB Group via the EIF, which specializes in venture capital for SMEs, has granted Banco Sabadell a €96 million guarantee for a loan securitization portfolio, which will enable the Spanish bank to increase its lending capacity to offer €576 million in financing for projects being carried out Spanish companies, primarily self-employed business people, SMEs and mid-caps.

The agreement includes a commitment to direct part of the new Banco Sabadell financing to investments promoting climate action. The financing will go to projects focusing on improving companies' energy efficiency, driving renewable energies, refurbishing commercial buildings to reduce energy use, and investments for purchasing low-emissions commercial vehicles and agricultural equipment with low fuel consumption.

The agreement was signed under the Investment Plan for Europe, which provides support enabling the EIB expand its capacity to finance investment projects that have a higher risk profile owing to their structure or nature.

Estimates indicate that the Banco Sabadell deal will make it possible to support more than 1,400 companies employing around 79,000 people.  

A White & Case team advised the EIB and the EIF on the deal. The White & Case team included partners Ingrid York and Tom Falkus (both London), Debashis Dey (Dubai & London), Gregoire Karila (Paris) and Fernando Navarro (Madrid), counsel Claudio Medeossi (Dubai) and associates Adam Gao (Dubai) and Alfonso Garcia Freire and Raquel Singla (both Madrid).

The EIB is led by president Werner Hoyer (pictured).