EIB Group financing in Spain up significantly in 2021, reaching a record €12.771 billion

The EIB Group (comprising the European Investment Bank and European Investment Fund — EIF) published the results of its activity in Spain in 2021. Last year, the EIB Group signed 111 operations in Spain worth a total of €12.771 billion (13.5% of the EIB Group’s total activity in 2021), 51% more than in 2020. Spain was once again among the three countries receiving the most financing, equalling almost 1% of its gross domestic product (GDP).

At the press conference in Madrid today, EIB Vice-President Ricardo Mourinho Félix said: “As the record volume of operations in 2021 shows, the EIB Group has mobilized substantial resources in Spain to tackle the climate, economic, and public health emergency. Throughout this second pandemic year, the EIB Group has focused its efforts on helping Spanish small and medium-sized enterprises to mitigate the economic effects of the crisis and safeguard jobs, while also providing significant support for innovation and the digital transition, which are key pillars of the European Green Deal. The sharp increase in climate action investment highlights a strong commitment to our main objective: climate mitigation, climate adaptation, and sustainable recovery. As the EU climate bank, it is our responsibility to support Spain’s ambitious climate goals, in line with national strategies and the Paris Agreement.”

Supporting SMEs

The pandemic has continually highlighted the need to support SMEs, which represent a substantial part of the production and employment landscape in Spain. Among EU countries, Spain once again received the most EIB Group financing aiming to meet the liquidity requirements of these companies and ensure that they have the funds they need to keep their businesses afloat, totaling €7.25 billion in 2021 and accounting for 57% of the EIB Group’s overall activity in Spain (up 73% compared to 2020).

Combating COVID-19 — the European Guarantee Fund

The European Guarantee Fund (EGF) aims to mobilize up to €200 billion in financing for European companies, with a particular focus on SMEs. The EGF has proven to be a key role in supporting business, with EIB Group guarantees to financial institutions to keep credit flowing and back supply chains. Spain was the first country to benefit from this fund in 2020 and, during 2021, the EIB Group (EIB and EIF) signed 28 EGF operations in Spain for a total guarantee amount of over €2.6 billion. This guarantee portfolio is expected to generate around €24.4 billion in financing on favorable terms for companies affected by the coronavirus pandemic (mainly SMEs), with a positive impact on the entire supply chain.

The projects signed in Spain in 2021 by the European Investment Fund (EIF) — the EIB subsidiary specialising in providing solutions to financial intermediaries to support SMEs and to promote innovation in Europe — totaled €3.93 billion. It was a very active year for EIF guarantees in Spain, mainly driven by the deployment of the European Guarantee Fund (EGF). In concrete terms, guarantee operations were signed with 23 financial intermediaries, 11 of which were new counterparties for the EIF. It was also a record year for activity with non-banks, such as debt fund managers, fintech, and specialized financing platforms. The EIF has therefore increased both the number of financial intermediaries and their level of specialization, covering sectors such as renewable energy, startup financing, and specialized financing in the health and primary sectors, thereby supporting strategic sectors contributing to economic recovery and growth and improving cooperation between the public and private sectors in the country.

Climate action financing up once again

Combating climate change remains the biggest challenge of this century and is among the EIB’s top priorities as the EU climate bank. For the sixth year in a row, the EU bank increased the percentage of its activity in the country intended to promote projects that contribute to climate action and environmental sustainability, up to a total of 43% (€3.897 billion), a 5 percentage point increase on 2020 figures. These EIB funds will go to projects including the development of clean transportation, renewable energy generation in Spain, the modernization of power grids, energy efficiency in buildings, and the construction of recycling plants.

Innovation

The EIB Group has continued to champion innovation and digital transformation as vital elements of promoting the European economic recovery and long-term competitiveness after the pandemic. To this end, the EIB Group has directed €1.561 billion to finance for innovation, digitalization, and human capital in Spain, supporting businesses in new sectors such as chemicals, education, and security services.