Santander and the European Investment Bank (EIB) have signed a financing deal worth EUR 400 million to boost investment by SMEs and mid-cap companies (MidCaps) and support the agricultural sector in Portugal. This deal aims to improve access to financing for companies in strategic sectors, boost agricultural development, and support economic cohesion across regions.
The initiative includes a EUR 75 million investment specifically for the agricultural sector under the Pan-European Agricultural Programme, an EIB initiative to strengthen agriculture and the bioeconomy in Europe – one of the EIB’s eight key priorities.
At least 10% of this amount will be allocated to young and newly established farmers, with the EIB enabling eligibility for financing the acquisition of agricultural land. This is the first deal signed by the EIB under the EUR billion package launched in 2024 to support agricultural businesses, with a particular focus on businesses led by young entrepreneurs.
The remaining EUR 325 million will be directed towards financing SMEs and MidCaps in Portugal, with around 60% of the funds to be allocated to cohesion regions to promote economic development in areas with less access to credit and encourage business modernization.
According to Amílcar Lourenco, Executive Director of Santander Portugal, “It is with a huge sense of commitment to our companies that we have concluded yet another agreement with the EIB. We work every day to provide the best solutions to our customers on the understanding that sustainable investment decisions are crucial for business growth and, consequently, for the country’s development.”
“These funds reinforce the EIB’s commitment to sustainable economic growth by ensuring that SMEs, including those in the agricultural sector, have access to more favourable financing conditions”, said Jean-Christophe Laloux, EIB Director General and Head of Operations. “By supporting young farmers and innovative projects, we contribute to the resilience and competitiveness of the Portuguese economy.”
This collaboration affirms the EIB’s commitment to support the agricultural sector and economic development and promote financial inclusion and sustainable growth in Portugal.
The transaction came through the issuance of debt securities by Santander, namely European Premium Covered Bonds, subscribed exclusively by the EIB. Thus, the EIB provides direct financing to Santander, which in turn channels these resources to support SMEs and MidCaps, including young farmers, and ensure better financing conditions.
