The European Investment Bank Group (EIB), which includes the European Investment Bank and the European Investment Fund (EIF), has agreed to a major new financing package with Banco Sabadell to unlock up to €1.8 billion for small and medium-sized enterprises and mid-caps across Spain, the institutions announced. The move combines a €500 million EIB investment in a mortgage bond and another €322 million in a securitisation deal, with the aim of improving liquidity, boosting competitiveness, and helping Spanish businesses recover from recent climate shocks.
Part of the loan package will focus on green and climate-resilient projects, with up to €180 million reserved for companies affected by the devastating floods that hit Spain in late 2024, as well as projects to strengthen future flood prevention. Another €138 million will go to support agribusinesses and public sector entities such as irrigation associations, funding the rehabilitation and modernization of infrastructure to ensure more efficient water use. The EIB’s mortgage bond investment alone is expected to help Sabadell unlock around €1 billion in new credit lines for businesses across Spain, most of them located in regions with incomes below the EU average.
The securitisation transaction, which meets the EU’s standards for simple, transparent, and standardised financial instruments, will redirect financing toward working capital and investment needs for smaller companies. Of the €322 million invested, €270 million comes from the EIB and €52.5 million from the EIF, the latter also earmarking funds for a €52 million green loan portfolio that Sabadell will manage.
“These agreements will make it easier for Spanish small businesses and mid-caps to access the financing they need to strengthen their resilience, invest in the green transition, and boost competitiveness,” said Gemma Feliciani, Director of Financial Institutions at the EIB. “They will also help rebuild after the 2024 floods and promote modern, water-efficient agricultural projects.” EIF Chief Executive Marjut Falkstedt added that the partnership “reflects our shared commitment to advancing a more responsible and inclusive economy aligned with the EU’s climate goals.”
Eduardo Currás, Banco Sabadell’s Deputy General Manager and Head of Corporate Banking, welcomed the deal as a vital step in supporting small businesses at a time of recovery.
“With €1.8 billion mobilised, we’ll be able to provide crucial support for reconstruction following extreme weather events and help small firms transition toward more sustainable and competitive business models,” he said.
The new agreement underscores the EIB Group’s broader mission to strengthen small business financing, boost sustainability, and expand the use of capital market tools like securitisation to reduce risk for lenders and improve financial stability across the EU.
