The European Investment Fund (EIF) and Millennium bcp (BCP) have signed a €405 million InvestEU-backed guarantee agreement to support investment for key EU priorities in Portugal. Projects eligible to benefit from the new financing made available with this deal include sustainability, innovation and digitalisation, social entrepreneurship and microfinance, the cultural and creative sectors, skills and education, and competitiveness.
The new credit lines will facilitate access to finance for Portuguese small and medium-sized enterprises (SMEs). The loans will benefit from an EIF guarantee between 50% and 80% and will have a maximum duration of 12 years. The top amount of each loan varies according to the area and can reach up to €7.5 million. This operation is supported by the InvestEU programme, which is expected to mobilise more than €372 billion in additional investment for EU policy priorities over the 2021-2027 period.
European Commissioner for Economy Paolo Gentiloni said: "The InvestEU Programme plays a crucial role in supporting SMEs in Europe to excel in innovation, digitalisation and sustainability. I am delighted that, with the support of this new agreement, more Portuguese small businesses will be able to unlock the funds needed to thrive and reach their full potential. This will help them to grow, advance their green and digital transition, while bringing more jobs to the economy."
"These financial guarantee instruments from InvestEU are extremely important for financing the Portuguese economy and highlight the Bank's commitment to companies" said Miguel Maya, CEO of Millennium bcp. "As the leading bank for companies in Portugal, we stand alongside entrepreneurs in key areas of investment with an impact on innovation and digitalisation, sustainability, SME competitiveness, training, social economy and creative industries. After the successful implementation of the EIF EGF – Pan-European Guarantee Fund with €2,745 million allocated in total, Millennium bcp is committed to accelerating the launch of this new support, totalling €405 million to finance sustainable companies with the guarantee of InvestEU."
EIF Chief Executive Marjut Falkstedt added: "The Fund looks forward, with great satisfaction, to the important contribution that the credit lines made available under the InvestEU guarantee can make to the growth of micro and small enterprises in the country — vital for the economy and job creation in Portugal — enabling the transformation of enterprises in different key areas such as sustainability, digital and innovation."
Millennium bcp's SME customers seeking to accelerate their digital and green transition and invest in innovation or growth will be able to apply for funding under the new guarantee agreement. The credit lines available include €175 million reserved for strengthening the competitiveness of Portuguese companies, €71 million to support the financing of sustainable projects and €54 million earmarked for the cultural and creative sectors. Millennium bcp also proposes to provide advisory services free of charge to support entrepreneurs and micro-enterprises, starting with the strategic implementation of their businesses.
Additional information:
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increasing their risk-bearing capacity and thus mobilising at least €372 billion in additional investment.
The EIF is part of the European Investment Bank (EIB) Group. Its core mission is to support European micro, small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture capital, guarantee and microfinance instruments aimed specifically at this market segment. In this capacity, the EIF fosters the European Union's objectives of supporting innovation, research and development, entrepreneurship, growth and employment.
Millennium bcp is the leading bank for companies in Portugal, with a 19.3% market share in loans to SMEs and more than €23 billion provided in loans. The bank is the market leader for the most significant customer segments, with market shares of 28% in factoring and confirming, 25.8% in leasing, 22.1% in exporters, 45% in European funds (Portugal 2020) and 32% in the Portuguese mutual guarantee system. It is also the number one bank in EIF/EIB guaranteed financing lines, and it has the largest contract ever signed in Europe between the EIF and a commercial bank.
