European Investment Bank grants €100 million loan to expedite climate transition among small and medium-sized enterprises in Catalonia
The European Investment Bank (EIB) and the Institut Català de Finances (ICF) have joined forces to encourage small and medium-sized enterprises (SMEs) to invest in sustainability and climate change projects. The purpose of the €200 million loan agreement is to expand the availability of funds for SMEs to invest in areas such as renewable energy, energy efficiency, electric vehicles, circular economy initiatives, and sustainable waste management.
The first tranche of this significant loan, amounting to €100 million, has already been signed. This agreement is expected to have a profound impact, supporting the green transition of SMEs, a crucial part of the economy, by improving their access to finance for environmentally sustainable investments.
Gilles Badot, EIB Director of Public Sector Lending in the EU, emphasized that the loan will facilitate SMEs’ access to financing for sustainability initiatives. He added that this cooperation between public-sector financial institutions is a crucial step towards driving the green transition.
Vanessa Servera, CEO of ICF, stated that the EIB support enables them to offer Catalan SMEs better financing conditions for implementing projects and investments directly. This, in turn, will help meet climate goals and drive competitiveness. 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 and help create a more sustainable and competitive economy.
The EIB plays an important role in promoting regional development and social cohesion in Catalonia. This loan is just one example of the EIB's commitment to supporting the Catalan region in its efforts towards a green and digital transition.
It's worth noting that this is not the first collaboration between the EIB and ICF. Other recent financing agreements include a €100 million loan for the development of care homes, day centers, and assisted living facilities. The long-standing partnership between the two institutions aims to support economic development, green and digital transition, and SME competitiveness.
The loan is the first tranche of a total approved EIB loan of €200 million, with a second tranche planned. The EIB monitors the servicing of the loan, checks that funds are being used in line with objectives, 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. Monitoring requirements for each project are determined according to their characteristics.
In conclusion, the €200 million loan agreement between the EIB and ICF is a significant step towards encouraging SME investments in sustainability and climate action projects. The loan aims to accelerate the green transition, enhance competitiveness, and support the climate goals of the region.
- The loan agreement between the EIB and ICF, worth €200 million, focuses on renewable energy, energy efficiency, electric vehicles, circular economy initiatives, and sustainable waste management to facilitate SMEs' access to finance for environmentally sustainable investments.
- The social impact of the loan is evident, as the partnership between public-sector financial institutions like EIB and ICF drives the energy transition, improving the competitiveness and climate goals of the region.
- The loan agreement also encompasses environmental-science projects, positioning sustainability at the forefront of business practices and helping create a more sustainable and competitive economy.
- Furthermore, the finance provided by this agreement supports the science behind climate-change mitigation and adaption, demonstrating the integration of environmental, economic, and financial considerations in the green transition.
