The European Investment Bank (EIB) and Banco BPI have signed an agreement to create a new credit portfolio of up to €190 million in financing for mid-caps in Portugal “with better credit conditions.”

Banco BPI of Portugal is fully owned by CaixaBank of Spain.

The operation comes under the “Growth for Midcaps” guarantee, an EIB financial instrument that aims to share credit risk with European banks to facilitate access to finance for businesses.

This is the fifth project since 2023 under the instrument to have been approved in Portugal.

“This funding will be used for productive investments in strategic sectors,” said the EIB.

“The new loans are also expected to benefit companies operating in priority cohesion regions of Portugal, directly contributing to promote regional development and economic convergence in Portugal.

“For this risk-sharing instrument, the EIB has approved a €100 million guarantee operation for Banco BPI, covering 75% of the credit risk for financing mainly dedicated to energy efficiency and renewable energy projects, in line with the European Union’s sustainability and energy transition objectives.

“The remaining part of the portfolio will benefit from a 50% guarantee rate from the EIB.”

Gemma Feliciani, Head of the Financial Institutions Department at the EIB, said: “Mid-caps are fundamental to the Portuguese economy. This operation will enable to provide loans under better financing conditions for investments to bolster productivity, innovation and environmental sustainability.”

Ana Rosas Oliveira, Executive Board Member at BPI, said: “This initiative demonstrates our ongoing shared commitment to supporting mid-cap companies by providing them with the resources they need to grow and improving credit conditions.

“Additionally, we are fostering new investments, innovation and the green transition. Finally, the loans are expected to benefit companies operating in less developed regions of Portugal, emphasizing our strategic focus on enhancing the competitiveness of the business sector and promoting regional convergence.”