Portugal: EIB Signs Agreement With Millennium BCP To Provide €400 Million In New Loans To Companies
Business
The EIB guarantee agreement will enable Millennium bcp to build a portfolio of new loans of up to €400 million with better credit conditions.
The EIB will provide a 50% guarantee to Millennium bcp to enhance its financing and risk-taking capacity and, as a result, generate new lending of up to €400 million. The transaction is expected to benefit the Portuguese economy by mobilizing new investments worth up to €560 million.
The signing ceremony took place on 11 January, in Lisbon, in the presence of the Head of Division for Western Europe from EIB, Gemma Feliciani, and the Vice-Chairman of the Executive Committee of Millennium bcp, João Nuno Palma, who agreed that the rapid mobilization of financing for the Portuguese companies is strategic to ensure that they continue to have the liquidity to operate and contribute to the country's productive capacity for goods and services.
The operation is consistent with the strategic objective of the EU and the European Investment Bank to support uninterrupted access to finance for European mid-cap companies given their importance for growth, competitiveness, innovation and employment.
In 2023 the EIB achieved a total volume of financing to financial institutions in Portugal of c. €1 billion to the benefit of key EU policy objectives, ranking fifth among EU Countries, through a mix of guarantee, funding and securitization products with a specific focus on support to SMEs and Mid-caps.