Bankinter and EIB provide 600 million euros to finance SMEs

Bankinter and  the European Investment Bank (EIB) boost their partnership to help small and medium enterprises access credit. The EU bank has granted a 300-million-euro loan to Bankinter, which will, in turn, contribute an additional 300 million to this credit facility. Ultimately, the total amount available to SMEs will be 600 million euros. Thanks to the EIB, this funding comes with very favourable terms and conditions for companies in terms of repayment periods and interest rates, so that they may carry out their  projects

This agreement was signed in Madrid by EIB vice-president and Bankinter CEO, María Dolores Dancausa. This is the fifth loan agreement with these features that these institutions have signed. In particular, this funding aims to help industrial and commercial SMEs invest in innovative and modern equipment.

The last agreement signed by the EIB and Bankinter in 2016 help finance over 1,500 companies, which were mainly engaged in manufacturing, wholesale and retail commerce and the auto industry. Most of the companies that applied for a loan under this previous EIB-Bankinter credit facility are located in the Valencian Community, Catalonia, Andalusia, Castile and León, and the Basque Country.   The average amount borrowed under this agreement was 200,000 euros.  

To be eligible for this financing plan put forth by the EIB and Bankinter, the  total value of investment projects must be less than 12.5 million euros in the case of small enterprises, and 25 million euros in the case of midcap companies (with up to 3,000 employees).

At the signing event in Madrid, EIB vice-president, Román Escolano, remarked, ‘The agreement we are signing demonstrates that the EIB’s is firmly committed to having the advantages of our financing reach not only large projects and infrastructures, but small and medium enterprises as well, fundamental in generating wealth and employment for the Spanish economy. The EIB works to ensure that SMEs have the financing they need to invest in innovation and guarantee their competitiveness.’

The Bankinter chief executive officer further added that, ‘With this new agreement, we want to show the bank’s commitment to the financial development of small and medium enterprises. Companies form Bankinter’s main strategic line, contributing 30% to its gross operating income. Therefore, we work to fund their business projects under the best market conditions and provide them with the most innovative management tools.’