EUR 75 million will be earmarked exclusively for the agricultural sector, while EUR 325 million will support SMEs and MidCaps.

Lisbon, 7 May 2025.
Santander and the European Investment Bank (EIB) have signed a financing deal worth EUR 400 million to boost investment by SMEs and mid-cap companies (MidCaps) and support the agricultural sector in Portugal. This deal aims to improve access to financing for companies in strategic sectors, boost agricultural development, and support economic cohesion across regions. 

The initiative includes a EUR 75 million investment specifically for the agricultural sector under the Pan-European Agricultural Programme, an EIB initiative to strengthen agriculture and the bioeconomy in Europe – one of the EIB’s eight key priorities. 

At least 10% of this amount will be allocated to young and newly established farmers, with the EIB enabling eligibility for financing the acquisition of agricultural land. This is the first deal signed by the EIB under the EUR  billion package launched in 2024 to support agricultural businesses, with a particular focus on businesses led by young entrepreneurs. 

The remaining EUR 325 million will be directed towards financing SMEs and MidCaps in Portugal, with around 60% of the funds to be allocated to cohesion regions to promote economic development in areas with less access to credit and encourage business modernization. 

According to Amílcar Lourenco, Executive Director of Santander Portugal, "It is with a huge sense of commitment to our companies that we have concluded yet another agreement with the EIB. We work every day to provide the best solutions to our customers on the understanding that sustainable investment decisions are crucial for business growth and, consequently, for the country's development."

"These funds reinforce the EIB's commitment to sustainable economic growth by ensuring that SMEs, including those in the agricultural sector, have access to more favourable financing conditions", said Jean-Christophe Laloux, EIB Director General and Head of Operations. "By supporting young farmers and innovative projects, we contribute to the resilience and competitiveness of the Portuguese economy." 

This collaboration affirms the EIB’s commitment to support the agricultural sector and economic development and promote financial inclusion and sustainable growth in Portugal. 

The transaction came through the issuance of debt securities by Santander, namely European Premium Covered Bonds, subscribed exclusively by the EIB. Thus, the EIB provides direct financing to Santander, which in turn channels these resources to support SMEs and MidCaps, including young farmers, and ensure better financing conditions. 

About Santander Portugal 

Santander Portugal is a leading bank in Portugal’s financial system. Its purpose is to help people and businesses prosper. Serving around three million customers, Santander's vision is to be the best open financial services platform by acting responsibly and earning the trust of employees, customers, shareholders and broader society. 

Santander is the largest private bank in Portugal in terms of credit granted, with a privileged position in segments such as mortgages and corporates as well as in profitability and efficiency, with ROE of 32.2% in March 2025. Its balance sheet strength is reflected in high capital ratios (CET1 of 14.2% in March 2025, above the SREP requirement of 8.4%) and a high quality credit portfolio (NPE ratio of 1.5%). 

The bank has been implementing a comprehensive digitalization strategy that focuses on simplifying processes and innovation and providing a more personalized service and enhanced user experience to its customers. 

About the EIB 

The European Investment Bank (EIB) is the European Union's long-term lending institution, owned by its Member States. Based on eight key priorities, the EIB finances investments that contribute to EU policy objectives, strengthening climate action and the environment, digitalization and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, high-impact investments outside the EU and the Capital Markets Union. 

The EIB Group, which includes the European Investment Fund (EIF), signed off almost EUR 89 billion in new financing for more than 900 high-impact projects in 2024, strengthening Europe's competitiveness and security. 

All projects financed by the EIB Group comply with the requirements of the Paris Agreement, as set out in the Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation, adaptation and a healthier environment. 

As a show of its support for market integration and to mobilize investment, the Group provided its backing to a record of more than EUR 100 billion in new investment for Europe's energy security in 2024, mobilizing EUR 110 billion in growth capital for European start-ups, scaleups and pioneers. Around half of EIB financing in the European Union goes to cohesion regions, where per capita income is below the EU average.

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