EIB and BPI mobilise €300 million to support SMEs and sustainable projects in Portugal

The European Investment Bank (EIB) has signed a loan agreement for €300 million with Banco BPI. This operation aims to finance small and medium-sized enterprises (SMEs) and mid-caps, and public sector entities in Portugal, with a focus on climate action and environmental sustainability projects.

By facilitating access to credit, this loan is essential for promoting and accelerating private sector investments, which are important for growth and employment in the Portuguese economy. The operation will also contribute to cohesion regions, helping to reduce regional disparities.

"We are, of course, proud to be partnering again with Banco BPI, especially with this significant loan, to support SMEs and promote sustainability projects in Portugal," said Birthe Bruhn-Léon, Head of the Financial Institutions Department at the EIB. "This financing will not only boost the economy and create employment, but it will also promote regional cohesion. Together, the EIB and BPI, by improving access to finance for SMEs, are committed to driving the green transition by supporting investments aimed at combatting climate change."

"At BPI, one of our priorities is supporting competitiveness and the sustainable transition process for companies and the Portuguese economy," said Ana Rosas Oliveira, BPI Executive Director-designate. "This agreement with the EIB reinforces our joint action in the area of green finance, particularly by providing specific lines of support for companies that favour ESG factors in their strategy and investments."

The EIB financing is intended to support investment in eligible sectors, with at least 85% of the funds directed to investments by SMEs and mid-caps. For public sector entities, approximately 20% of the total investment amount will be reserved for climate action initiatives in target sectors such as urban and suburban public transport, renewable energy generation, green projects (water and circular economy) and energy efficiency.

Banco BPI, as the intermediary for this loan, will use this financing to develop a €300 million portfolio of new loans highlighting green and environmental sustainability projects, ensuring the funds are allocated efficiently and effectively.

About the EIB

The European Investment Bank (EIB) is the European Union's long-term financing institution owned by its Member States. The EIB finances sound investments that contribute to EU policy objectives . EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), recorded €2.1 billion of total financing underwritten in Portugal in 2023. Around half of this investment went to support SMEs and mid-cap companies. In total, the EIB Group signed €88 billion in new financing in 2023.

About BPI

BPI is focused on commercial banking in Portugal, offering a wide range of financial services and products for business, institutional and retail customers. BPI is part of the CaixaBank Group, Spain's leading retail bank, which, since the end of 2018, has held the entire share capital of the Portuguese bank.

Through their sustainable financing activity, BPI and the CaixaBank Group are fully committed to supporting environmentally friendly initiatives and projects that help prevent, mitigate and respond to climate change and the transition to a low-carbon economy. The group stands out for its implementation of responsible investment principles and its commitment to sustainable investment as strategies for managing global risks and generating long-term sustainable returns.

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