EIB and ICO create an investment platform for mid-caps to mobilise financing of up to EUR 1.12bn

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  The agreement will enable ICO to expand its lending capacity for mid-caps
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  The EUR 200m guaranteed by the EIB under a risk sharing facility has Juncker Plan support
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  Impact on jobs: the platform is expected to benefit companies employing almost 26 000 people

The European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) are joining forces to mobilise up to EUR 1.12bn in financing for Spanish mid-caps (companies with between 250 and 3 000 employees). To this end, EIB Vice-President Emma Navarro and ICO Chairman José Carlos García de Quevedo signed an agreement today in Madrid enabling the creation of a specific investment platform for these mid-cap companies via a risk sharing facility. The platform will mobilise private capital through syndicated loan agreements with financial intermediaries.

In concrete terms, the EIB will take on the risk of a portfolio of up to EUR 400m generated by ICO together with the commercial banking sector, which will provide at least 50% of the financing. This means that the financing volume provided for mid-caps via this agreement will total EUR 800m. Added to this is the contribution from the mid-caps themselves, which brings the expected total mobilised financing to EUR 1.12bn. This EIB risk sharing guarantee was signed under the Investment Plan for Europe. Juncker Plan support makes it possible to take on higher risks and improve the financing conditions offered to mid-caps, which will have access to longer maturity periods for developing their investments. The companies benefiting from this risk guarantee will be able to receive between EUR 8m and EUR 12m from ICO.

The aim of the agreement is to help provide Spanish mid-caps with access to the necessary resources to become innovation and sustainability leaders, enabling them to continue to grow and create jobs. The EIB calculates that the businesses able to benefit from this investment platform employ a total of 26 000 people.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "Thanks to this investment platform, Spanish medium-sized businesses will get the funding they need to grow and create jobs in the country. Raising investment to boost employment in Spain and throughout Europe has always been at the heart of the Investment Plan. I congratulate Spain on being among its top beneficiaries with over €46 billion of additional investments mobilised."

At the signing ceremony in Madrid, EIB Vice-President Emma Navarro said: “This new investment platform is an excellent example of how the EIB-ICO partnership, with Juncker Plan support, is making it possible to develop innovative financial instruments able to drive economic growth by mobilising private investment. We are delighted to be signing a very positive agreement for the financing of mid-caps, which have a key position due to their positive impact on job creation and on the production capacity of the Spanish economy.”

ICO Chairman José Carlos García de Quevedo added: “This agreement once again highlights the importance of the partnership between our institutions and strengthens ICO's role as a catalyst for EU funds, with the aim of driving the growth of Spanish businesses by helping to create and structure varied sources of financing.”

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy objectives.

The Investment Plan for Europe, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.

The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise more than EUR 371bn in investment and support some 856 000 SMEs in the 28 Member States.

More information on the results of the Investment Plan for Europe is available here.

The Instituto de Crédito Oficial (ICO) is a corporate state-owned entity attached to the Spanish Ministry of Economy and Business. ICO has become a reference point for the financing of both SMEs and large investment projects. ICO contributes to business growth and job creation, supporting economic activities meriting promotion and development as a result of their social, cultural, innovative or environmental importance.