The EIB and Santander have signed a guarantee agreement to boost financing for SMEs and mid-caps operating in the European security and defence supply chain.
This is the second operation that Santander has carried out with the EIB to provide financing in the field of security and defence.
The agreement strengthens the EU’s security and defence ecosystem and capabilities and contributes to its strategic autonomy in a context of growing geopolitical uncertainty.
Madrid, October 8, 2026.
The European Investment Bank (EIB), part of the European Investment Bank Group (EIB Group), has signed a guarantee agreement with Santander that will enable the mobilisation of approximately €300 million in new financing to facilitate access to credit for SMEs and mid-caps operating in the European security and defence supply chain.
SMEs and mid-caps represent a key component of the European security and defence ecosystem. Their capacity for innovation, technological specialisation, and flexibility makes them strategic suppliers of technologies, components, and advanced solutions for major companies in the sector. However, many of these companies face barriers to accessing the financing needed to undertake investments, increase production capacity, finance working capital, or develop new technologies.
The agreement between the EIB and Santander will help address these needs by expanding the range and improving the terms of available financing solutions. These funds may be allocated to both productive investments and working capital needs arising from increased activity and the execution of new contracts. The operation thus fosters the growth of a more competitive, innovative, and resilient business landscape in a strategic sector for Spain and Europe.
The operation will also help drive the development of next-generation technologies with applications in both the defence and civil sectors. Technological innovation is a decisive factor not only for strengthening Europe’s security and defence capabilities but also for enhancing productivity, competitiveness, and European industrial leadership in strategic technologies.
Strengthening European security and defence capabilities
Strengthening the European defence and security industrial base is a strategic priority for the EIB Group. In 2025, the EIB Group quadrupled its investments in this area, exceeding €4 billion. In 2026, it expects to exceed €5 billion, representing 5% of its total investments. In Spain, €500 million was allocated to this priority in 2025. The EIB Group provides financing in five key areas: major critical infrastructure; European industrial capabilities; research and development of advanced technologies; fostering the venture capital ecosystem dedicated to investing in the sector; and support for SMEs in the supply chains of European defence contractors.
Against this backdrop, the EIB has launched a pan-European intermediated financing instrument, with a lending envelope of €3 billion, to address the financing constraints facing EU companies active in the European security and defence supply chains. The transaction with Santander forms part of this scheme, from which other major banks in Europe also benefit.
The agreement with Santander was concluded today in Madrid at a signing ceremony between the two institutions.
Gemma Feliciani, Director of Financial Institutions at the European Investment Bank, stated at the end of the ceremony: “This new agreement with Santander is an example of how the EIB is strengthening its partnerships with banks across the EU to accelerate investment in a strategic sector, such as security and defence. Thanks to this initiative, more SMEs and mid-caps will be able to access the financing they need to grow within this ecosystem, strengthening Europe’s industrial base and contributing to greater European strategic autonomy in a context of growing geopolitical uncertainty.”
Borja Oyarzabal, Global Head of Commercial Banking at Santander, noted: “At Santander, we want to be a strategic partner for companies that contribute to Europe’s industrial development. This agreement with the EIB enables us to combine our financing capacity with a European risk-mitigation instrument to facilitate access to credit for mid-caps and SMEs with investment, innovation, and growth projects in a sector that is key to European competitiveness. SMEs and mid-caps form the core of the European defence supply chain and are an essential driver of innovation and technological development. Facilitating access to finance not only strengthens Europe’s defence capabilities but also boosts competitiveness, industrial resilience, and European technological leadership in sectors strategic to future economic growth.”
Alexandra Borisova, Global Head of Private Debt Mobilization at Santander Corporate & Commercial Banking, added: “Europe needs to mobilise an unprecedented volume of investment to strengthen its capabilities in security, defence and resilience. Achieving that goal requires close collaboration between public and private capital. Combining Santander’s financing capacity with European risk-mitigation instruments makes it possible to multiply the impact of public resources and expand access to credit for companies with high growth and innovation potential.”