ICO and EIB allocate €200 million to finance agrifood sector

ICO and EIB allocate €200 million to finance agrifood sector

This is the fourth loan agreed between the EIB and ICO to exclusively finance SMEs and the self-employed in the agrifood sector

The loan adds a further €200 million to the €2 billion already granted to this sector since 2013

The financing will be channelled through second-floor facilities

The European Investment Bank (EIB) and Instituto de Crédito Oficial (ICO) have signed a €100 million loan to finance SMEs and the self-employed in the agrifood sector. ICO will provide an additional €100 million, bringing the total volume of financing to €200 million.

This is the fourth loan agreement to be signed between the EIB and ICO to boost the agrifood sector. Some €2 billion has been granted to this sector since 2013, which has almost entirely been taken up and used to finance more than 20,000 transactions.

EIB Vice-President, Román Escolano, said "This is the fourth loan that we have agreed with ICO to specifically finance projects in the agricultural sector, which highlights the EIB¿s support for this sector and its importance to us".

For her part, the Chairwoman of ICO, Emma Navarro, stressed the fact that "This agreement consolidates ICO's position as a leader in financing businesses, providing them with the resources that they request and supporting a wide range of sectors in our country, such as the agrifood industry".

The loans may be used to finance new investment projects and/or working capital needs. These financing facilities may be accessed by small and medium-sized companies, including the self-employed and cooperatives from different areas of the agriculture and agrifood sector, such as arable enterprises, livestock farming, forestry and fisheries, as well as the agrifood and wholesale food industries.

The funds will be channelled through the financial institutions with which ICO has agreements for distributing second-floor facilities to ensure that they are available to all Spanish companies.

About the European Investment Bank (EIB):

The European Investment Bank (EIB) is the European Union's long-term financing institution, which is owned by its member states. EIB provides long-term financing to viable investment projects in order to help achieve EU policy objectives.

About Instituto de Crédito Oficial (ICO):

Instituto de Crédito Oficial is a state-owned bank and a public sector company, attached to the Ministry of Economy and Competitiveness via the State Secretariat for Economic and Business Affairs. It has the legal status of a credit institution and takes the role of a State Financial Agency. As a state-owned bank, ICO grants loans to finance investment projects and provide liquidity to businesses, both in Spain and abroad, either through intermediary financial institutions or via direct financing. Moreover, as a state financial agency, ICO manages the official financing instruments that the Spanish state provides to promote exports and support development.