The Government approves the framework to mobilise EUR 40 billion in Recovery Plan loans and boost the green and digital transition for businesses

29 February 2024

  • This new framework will enable the implementation of the second phase of the Recovery Plan, continuing the process of modernising the Spanish economy
  • The loans will support the drive to invest and provide a safety net to finance public and private investments under optimal financial conditions in coming years
  • The ICO will manage five facilities to finance SME and business projects aimed at green and digital transformation, boosting the audiovisual sector and disruptive technologies, as well as increasing the stock of public social housing for rent
  • In order to ensure broad diffusion and maximise outreach, the funds will be channelled through different financial instruments
  • The deployment of these funds will depend crucially on collaboration with financial institutions in order to tailor the financing to the needs of companies of all sizes and sectors of activity all over Spain
  • Loans can be formalised until August 2026, but repayments can continue to be reinvested in new loans until 2036, thereby expanding the scope of the financing

The Council of Ministers has approved the agreement establishing the general conditions for the implementation of five facilities funded by the loans of the addendum to the Recovery Plan, amounting to EUR 40,000 million, and has entrusted their management to the Instituto de Crédito Oficial.

This launches the second phase of the Recovery Plan, with the allocation of almost half of the loans in the addendum, which will will enable the completion of the transformation and modernisation of Spain's productive framework and economy.

The loans will maintain the strong pace of investment and provide a safety net to finance public and private investments under optimal financial conditions in coming years

The five facilities approved today will be used to finance investment projects that support both the green and digital transition of businesses, thereby strengthening their competitiveness. Specific facilities will also be put in place to boost the audiovisual sector and disruptive technologies, as well as to increase the stock of public social housing for rent.

Specifically, the new framework involves the launch of the ICO-Verde facilities, endowed with EUR 22 billion; ICO-Empresas y Emprendedores, with 8.15 billion; ICO-Vivienda, with 4 billion; ICO-Audiovisual Hub, with 1.712 billion and the Next Tech Fund, with 4 billion. The ICO will sign agreements with the relevant Ministries, detailing the specific characteristics of each facility.

Financial instruments

The facilities will be used to finance investment projects and will be articulated through different financial instruments, such as loan lines through financial institutions (mediation lines), direct loans to companies by the ICO and acquisition by the ICO of bonds and equity or quasi-equity investments. The aim is to adapt the available financing to the specific needs of companies and the different sectors of activity.

For this second phase of the Recovery Plan, collaboration with private financial institutions will be particularly important, as their broad network will allow them to reach SMEs and companies of all sizes and sectors of activity all over Spain. It should be noted that, within these mediation lines, up to 100% of the financing of business projects will be made available under optimal financial conditions and with long repayment periods.

The loans managed by ICO can be formalised until August 2026, with repayments may continue to be reinvested until 2036, thereby extending the scope of the funds and their capacity to finance new investment projects.

ICO-Verde Line

The ICO-Verde Line will have EUR 22 billion available to provide loans to households and private and public companies. These loans may be used, among other things, to develop projects in sustainable transport, energy efficiency, renewable energies, decarbonisation of industry, water management, circular economy and adaptation to climate change.

ICO-Empresa y Emprendedores Line

The ICO-Empresas y Emprendedores Line is endowed with EUR 8.15 billion to finance the growth and resilience of companies, especially SMEs.  

Within this line, the tourism sector will have a compartment of EUR 1 billion for projects aimed at the development of new products or services, new organisational processes or innovation that improve efficiency, as well as investments aimed at improving the energy class of establishments and the sustainability of property.

In addition, a tranche of EUR 150 million is included for projects related to the digitisation of universities within the framework of the Strategic Projects for Economic Recovery and Transformation (PERTE) New Language Economy.

Spain Audiovisual Hub Line

This is endowed with EUR 1.712 billion to finance projects in the audiovisual sector, with the aim of encouraging private investment and improving access to financing for projects involving film, television, content generation, digital culture, as well as the development of multimedia and interactive content, such as video games and visual effects, among others.

ICO-Vivienda Line

This line will have EUR 4 billion available to finance projects aimed at increasing the stock of social housing for rent or affordable housing, as well as improving the existing stock of social housing.

Next-Tech Fund

Support for the business fabric is completed with the Next-Tech Fund, endowed with EUR 4 billion and managed by Axis, aimed at continuing to facilitate the growth of Spanish start-ups in disruptive technologies, promoting innovation and digitisation.