The European Investment Bank (EIB) has teamed up with Santander Consumer Finance to provide €150m (£127m) in funding for Spanish SMEs to obtain commercial vehicles.
The deal was signed Madrid by EIB vice-president Román Escolano and chief executive officer of Banco Santander and head of Santander Consumer Finance Magda Salarich.
Under the terms of the agreement, the EIB granted Santander €75m, which the bank will match, to provide €150m to SMEs for commercial vehicles.
The EIB said that the loan was designed to foster economic growth and job creation in Spain, boosting the competitiveness of Spanish businesses. The agreement is part of the EU’s 2017 ‘Loans for SMEs and Midcaps’ programme.
The loan follows a previous agreement in 2015, where the two institutions joined forces to provide €200m to over 1400 businesses across four Spanish regions, Catalonia, Andalusia, Murcia, and Valencia.
EIB vice-president Román Escolano said: “The importance of this loan’s contribution to implementing one of the EU’s economic priorities: supporting small businesses.
“Specifically, the operation that we have signed will provide access to credit on favourable interest rate and maturity terms for SMEs, which are key instruments of job and wealth creation in Spain”.