ICO and EIB provide €300 million to finance the renewal of ground transport fleets
The Minister of Public Works, Rafael Catalá, and the Minister of Agriculture, Food and the Environment, Isabel García Tejerina, attended the signing of the loan.
This operation will help to reduce CO2 emissions and improve sustainable development.
The chairwoman of Instituto de Crédito Oficial (ICO), Emma Navarro, and the Vice-President of the European Investment Bank (EIB), Román Escolano, today ratified a €300 million loan to help the self-employed, SMEs and mid-cap companies finance the renewal of ground transport fleets, at a ceremony attended by the Minister of Public Works, Rafael Catalá, and the Minister of Agriculture, Food and the Environment, Isabel García Tejerina.
Under this agreement, the EIB will contribute €150 million and ICO a further €150 million. The funds will be channelled through the private financial institutions that ICO uses to distribute its loans to ensure that the financing is available to all companies and the self-employed throughout Spain.
The operation forms part of the Environment Promotion Plans (PIMA) established by the Ministry of Agriculture, Food and the Environment. Replacing old vehicles with new ones will help to reduce CO2 emissions, which will have a very positive impact on the environment and sustainable development.
The chairwoman of ICO, who spoke on behalf of all of the signatory financial institutions to the loans, said, "This operation is an incentive to finance SMEs under advantageous conditions with long repayment terms and competitive interest rates, while also promoting the renewal of vehicles, which has a very positive environmental impact that will have implications for companies' growth and competitiveness".
This is the second such operation agreed between ICO and the EIB. Last year the EIB and ICO contributed €100 million each to another loan, providing €200 million of support for financing more than 7,000 operations.
As part of the event held this morning, another four Spanish financial institutions also entered into loans with the EIB with the same objective, providing €1.2 billion of support to SMEs and mid-cap companies (up to 3,000 employees). 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 State Financial Agency. As a state-owned bank, ICO grants loans to finance investment and liquidity projects for businesses in Spain and abroad, through intermediary financial institutions or via direct financing. Moreover, as the State Financial Agency, ICO manages the official financing instruments that the Spanish state provides to promote exports and support development.