EIB and BBVA will mobilize 1,194 million to promote climate action and the recovery of SMEs in Spain

MADRID, 18 Jul. (EUROPA PRESS) -

The EIB Group, made up of the European Investment Bank (EIB) and the European Investment Fund (EIF) and BBVA have agreed to mobilize 1,194 million euros to promote climate action and the economic recovery of SMEs in Spain, according to The Spanish entity has announced in a statement.

Specifically, the EIB has signed an agreement with BBVA to purchase asset securitization bonds, a transaction that encompasses several operations through a single securitization operation, a structure that is intended to achieve greater efficiency.

The EIB Group has also signed an agreement with the Spanish banking group for 54 million euros in a synthetic securitization under the Pan-European Guarantee Fund (EGF) program.

If the total amount of 1,194 million euros of the operations is taken into account, 512 million will go to green projects linked to the environment and climate action in Spain.

On the other hand, up to 682 million euros will translate into loan financing for Spanish SMEs and mid-caps that have been "severely" impacted by the effects of Covid-19 and the difficulties arising from the invasion of Ukraine and the high levels of inflation.

Specifically, the first two operations contemplate the largest financing: 500 million euros divided into two amounts in equal parts. Half of this amount is intended to provide financial resources to a series of initiatives specifically related to climate action, in areas that support energy efficiency and renewable energy objectives at national and European level, contributing to the reduction of CO2 emissions.

One of the specific areas included in this credit of 250 million euros is the energy rehabilitation of residential buildings in Spain by the communities of owners.

Likewise, BBVA may offer financing for the acquisition of residential properties with 'EPC Class A' energy performance standards, in order to comply with the requirements set by the EIB and the EU taxonomy.

Additionally, it may provide financial resources for private sector investments by SMEs and mid-caps. These investments have to be characterized by a "strong" climate action component.

The other 250 million euros will allow BBVA to increase its additional lending capacity and facilitate access to financing for eligible SMEs and midcaps.

The third of the operations of this agreement has a value of 90 million euros and includes the construction and operation of a portfolio of 13 photovoltaic plants throughout Spain. The project will have a capacity of 605MW and production of some 1,310GWh a year. This operation is 100% eligible under the EIB's Climate Awareness Bonds (CAB) programme.

The fourth operation between the Basque entity and the EIB Group will provide 100 million euros to finance the acquisition of properties with almost zero energy consumption in Spain, while the fifth is signed with the EIF and will allow BBVA to invest in more sustainable operations for value of 72 million euros.

A sixth and final operation is signed under the umbrella of the Pan-European Guarantee Group (EGF) and will provide 432 million euros for the financing of SMEs. The initiative, managed by the EIB Group, is part of the EU's global response package to Covid-19, which has an allocation of 540,000 million euros to support the European economy and, in particular, SMEs and mid-caps affected by the pandemic.