The European Investment Bank (EIB) has granted a €100 million loan to Banco Santander for financing the investment projects mainly in the industrial and service sectors of mid-cap companies (with up to 3,000 employees). This is the EIB’s first operation with Banco Santander specifically targeting mid-caps.

EIB Vice-President Magdalena Álvarez Arza and Banco Santander’s CEO, Emilio Botín, have signed a loan agreement for a €100 million loan to Banco Santander for financing the investment projects of mid-cap companies (with up to 3,000 employees) mainly in the industrial and service sectors. This loan is being provided in the framework of the Bank’s policy of fostering the development of mid-caps and promoting long-term investment in multiple areas of the economy. At the same time, it will help to stimulate growth and job creation by mid-caps. In 2009, for example, Banco Santander was one of those who managed the EIB credit lines for SMEs.

The projects eligible for financing will be located mostly in Spain and to a lesser extent in other EU countries. Around 40% of the loan amount will go to projects in convergence regions according to what it was announced by the EIB. This credit line – the EIB’s first operation with Banco Santander specifically targeting mid-caps – follows on from previous EIB loans to the bank and will strengthen the existing ties between the two institutions.

In 2011, the EIB Group provided a record €13 billion worth of loans for small and medium-sized businesses, reaching more than 120,000 companies throughout Europe. It signed loan agreements in Spain totalling €9,079 million, including €1,388 million in support of investment by Spanish SMEs.