- EIB Group, through its subsidiaries, the European Investment Bank and the European Investment Fund, has participated in a mortgage covered bond and a securitisation arranged by Banco Sabadell with a total investment of €822 million
- This investment enables Banco Sabadell to allocate approximately €1.879 billion to financing the liquidity and investment needs of SMEs and mid-caps in Spain
- Up to €180 million will go towards financing companies to aid and support reconstruction following the severe floods that struck Spain at the end of 2024, and to back preventive measures to improve resilience against future flood events
- Up to €100 million is intended to provide financing for SMEs, mid-caps and public entities, such as irrigation associations operating in the agricultural sector
- The transaction will boost Spanish companies’ competitiveness and will contribute to the EIB Group’s strategic priorities of promoting climate action and environmental sustainability and strengthening EU capital markets
16 December 2025
Banco Sabadell and the European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), have signed an agreement to issue a new mortgage covered bond and carry out a securitisation transaction, investing a total of €822.5 million. This investment enables Banco Sabadell to mobilise approximately €1.879 billion to finance the liquidity and investment needs of small and medium-sized enterprises (SMEs) and mid-caps in Spain.
The mortgage covered bond arranged by Banco Sabadell will unlock financing for companies to cover their liquidity needs and make investments, with a portion earmarked to promote investments in green projects. This financing is mainly intended for companies in cohesion regions, where per capital income is below the EU average. The EIB is investing €500 million in this covered bond, which will enable Sabadell to mobilise approximately €1.018 billion of new financing for SMEs and mid-caps.
Of this amount, up to €180 million is earmarked for projects undertaken by companies affected by the floods that hit Spain at the end of 2024, and for preventive measures to avoid future flood events. Additionally, up to €138 million will be allocated to provide financing for SMEs, mid-caps and public entities, such as irrigation associations operating in the agricultural sector. This financing for irrigation communities will enable Banco Sabadell to support community projects undertaken by public sector entities in Spain to rehabilitate, modernise and upgrade the existing infrastructure in order to allow more efficient water use.
The securitisation transaction also channels financing to cover the working capital and liquidity needs of SMEs and mid-caps, while facilitating their access to much-needed investment to strengthen their competitiveness. The EIB Group has invested €322 million in this securitisation transaction, with €270 million contributed by the EIB and €52.5 million by the EIF in the senior tranche. The EIF investment also features a green component which will enable Banco Sabadell to build a portfolio of green loans totalling over €52 million. The securitisation meets the Simple, Transparent and Standardised (STS) criteria in line with EU securitisation standards to foster a robust and efficient capital market.
Eduardo Currás, Deputy General Manager and Head of Corporate Banking at Banco Sabadell, stated that “this agreement with the EIB Group reinforces Banco Sabadell's long-standing commitment to Spanish SMEs and mid-caps, strengthening our efforts to ensure their liquidity and investment needs are met, particularly at moments critical to their growth or recovery. With €1.879 billion mobilised, we will be able to provide unwavering support for reconstruction in the wake of recent climate events and pave the way towards a more sustainable production model. Banco Sabadell is proud to collaborate with the EIB and EIF in an agreement that highlights our commitment to climate action and our support for SMEs and mid-caps, thereby strengthening European capital markets and long-term economic development.”
“These agreements with Sabadell will make it easier for Spanish SMEs and mid-caps to access the financing they need to cover their working capital needs and invest in the green transition and competitiveness. They will also help to strengthen EU capital markets, aid reconstruction efforts following the severe floods in Spain in 2024 and will support preventive measures to improve resilience against future flood events. By providing financing to irrigation communities, the operation will also promote agricultural projects to modernise infrastructure and achieve more efficient water use”, said Gemma Feliciani, director of Financial Institutions at the EIB.
“Our most recent collaboration with Sabadell reinforces the strong commitment of both institutions to support Spanish small and medium-sized enterprises by improving their access to finance. With this operation, we move forward together towards a more responsible, inclusive economic model aligned with the European Union’s climate objectives,” said Marjut Falkstedt, EIF Chief Executive.
