The EIB is granting a EUR 150 million loan to Banco Santander Totta (BST) for financing SMEs, midcaps and public sector entities in Portugal. EIB Vice-President Román Escolano and the President of the Executive Committee of Banco Santander Totta, António Vieira Monteiro, signed the contract today in Lisbon. This EUR 150 million facility is the last tranche of a total EUR 500 million intermediated loan to BST designed to facilitate the financing of small and medium-sized projects.

The European Investment Bank (EIB) is granting a EUR 150 million loan to Banco Santander Totta (BST) for financing SMEs, midcaps and public sector entities in Portugal. EIB Vice-President Román Escolano and the President of the Executive Committee of Banco Santander Totta, António Vieira Monteiro, signed the contract today in Lisbon. This EUR 150 million facility is the last tranche of a total EUR 500 million intermediated loan to BST designed to facilitate the financing of small and medium-sized projects.

Thanks to the EIB loan, Banco Santander Totta will be able to continue supporting investments mainly promoted by SMEs and midcaps. Banco Santander Totta will transfer the EIB funding advantage to the final beneficiaries in terms of both maturity and interest rates. Up to 30% of the loan amount may be used to finance small projects implemented by municipalities or other public sector entities.

This is the sixth EIB operations with Banco Santander Totta for SMEs and midcaps. The first and second tranches of the EUR 500 million loan approved for Banco Santander Totta were signed in November 2015 and December 2016, and have served to provide financing to more than 2,000 different companies and projects in Portugal.

At the signing ceremony, EIB Vice-President Román Escolano said: “The agreement signed today in Lisbon with Banco Santander Totta will facilitate access to credit for Portuguese SMEs, which account for around 80% of total employment in Portugal. The additional financing capacity provided by the EIB through this loan, and on advantageous terms, will therefore continue to foster long-term growth and job creation in the country owing to the importance of these companies for the Portuguese economy.”

António Vieira Monteiro, CEO of Banco Santander Totta, added: “Our bank’s purpose is to help people and businesses prosper. We are very active in the promotion and development of companies that have a strong capacity to generate results in Portugal and abroad. This new tranche will contribute to the growth of Portuguese companies, while at same time serving to retain talent and having a positive impact on our economy”.  

In 2016, the EIB Group provided EUR 33,600 million for small businesses, reaching 300,000 companies throughout Europe. In Portugal, also last year, the EIB Group signed loan agreements totalling EUR 1,780 million, including EUR 1,196 million that contributed to supporting more than 8,200 Portuguese SMEs.