Santander and the European Investment Bank (EIB) have signed a €400 million financing operation to boost investment in small and medium-sized enterprises (SMEs) and mid-caps, as well as to support the agricultural sector in Portugal.
To carry out the operation, Santander is issuing debt securities in the form of premium European covered bonds subscribed exclusively by the EIB.
In this way, the EIB will provide financing directly to Santander, which in turn will use these resources to support SMEs and mid-caps – including young farmers.
The operation aims to improve access to finance for companies operating in strategic sectors, with a view to accelerating development in the agricultural sector and to supporting “cohesion regions.”
The operation includes €75 million to be allocated specifically to the agricultural sector under the Pan-European Agricultural Programme. An EIB initiative, this programme aims to strengthen farming and the bioeconomy in Europe, which is one of the EIB’s eight core priorities.
At least 10% of this amount will support young and newly established farmers. The financing will also be available for the purchase of agricultural land. This is the first operation that the EIB has signed under the €3 billion package launched in 2024 to support businesses in the agricultural sector, with a particular focus on companies led by young entrepreneurs.
The remaining €325 million will be used to finance SMEs and mid-caps in Portugal.
It is expected that around 60% of this figure will be allocated to cohesion regions, promoting economic development in areas where credit is less accessible, and encouraging businesses to modernise.
“This financing agreement reinforces the EIB’s commitment to sustainable economic growth, ensuring that SMEs and the agricultural sector have access to favourable financing conditions,” said EIB Director-General and Head of Operations Jean-Christophe Laloux. “By supporting young farmers and innovative projects, we are helping to make the Portuguese economy more resilient and competitive.”
Santander Portugal Executive Board Member Amílcar Lourenço added: “It is with great commitment to our companies that we have concluded yet another agreement with the EIB. Every day we work to provide the best solutions for our clients, and we are aware that sustainable investment decisions are crucial for business growth and for Portugal’s development.”