The coronavirus pandemic has left its mark on society and the economy. To reduce the impact of covid-19 on companies, Santander has loaned more than 600 million a day since the start of the health crisis to SMEs and enterprises, in addition to taking many other initiatives and measures.
Santander has developed work plans in each of its core markets to be closer to SMEs. We have taken measures with our asset management company, as well as the European Investment Bank (EIB) and World Bank’s International Finance Corporation (IFC) in Brazil.
In Brazil, we stepped up efforts in green financing for Brazilian SMEs. We have partnered with the IFC to help small and medium-sized enterprises get credit through a line of credit of $100 million with its working capital solutions programme, which largely markets solar panels and promotes companies run by women.
In Spain, we strengthened our commitment to alternative financing for SMEs, setting out to contribute up to €300 million from our own balance sheet for the launch of Alternative Leasing, the new hedge fund managed by Santander Asset Management. The fund aims to attain a maximum volume of €750 million and targets institutional investors seeking to diversify their portfolio with SMEs primarily in Spain but also in Portugal, France and the Benelux region.
We also joined forces with the EIB to provide concessional financing to Spanish SMEs and mid-cap companies affected by covid-19. The EIB and the European Investment Fund (EIF) have signed several tranches of a synthetic securitization of SME loans our company originated, to provide more than €900 million in funding that will inject liquidity and support investments of small and medium-sized enterprises.
The EIB underwrote €193 million of Banco Santander’s securitization and will offer SMEs hit by the pandemic concessional financing to boost the recovery of Spain’s productive fabric. It will also support information and communication technologies (ICT) and other innovative SME investment initiatives. Part of the EIB’s financing is supported by the European Fund for Strategic Investments (EFSI).
In addition, the EIF underwrote an additional €5 million in the same securitization. Santander is financing the investments of small and medium-sized Spanish companies intended to mitigate and adapt to climate change.
These measures highlight our ability to help small and medium-sized enterprises prosper. Thanks to our efforts, we have been named the World’s Best Bank for SMEs 2020 by Euromoney magazine, an honour that will always accentuate our work with SMEs.