ICO launches its financing facilities for 2016
ICO continues its unwavering support for Spanish companies and their internationalisation with its financing facilities for 2016
It has expanded its range of financing instruments with the new "ICO Commercial Credit" facility to provide liquidity to companies
Its loan repayment terms have also been increased and are now available from 180 days to 20 years
In 2016, demand for financing from ICO facilities is expected to reach €12 billion
ICO has launched its financing facilities for 2016, offering financing to companies and the self-employed under beneficial terms. Its objective this year is to continue to be the leading institution for providing credit to businesses and to position itself as a bank that specialises in supporting SMEs and the self-employed in their international activities, working with the commercial banking sector.
ICO facilities provide financing to projects, in Spain and abroad, driving economic growth and investment, innovation and the internationalisation of companies in particular.
ICO has played an important role in financing businesses during the most difficult stages of the crisis, in line with its counter-cyclical function. In 2016, against a backdrop of strong economic growth and private sector credit returning to normal, demand for ICO financing from SMEs is expected to reach €12 billion. ICO will therefore continue its unwavering support of Spanish businesses.
ICO offers a variety of financing facilities in two strategic areas: Companies and Entrepreneurs, and Internationalisation.
In the former, the ICO SMEs and Entrepreneurs facility is aimed at small and medium sized enterprises, the self-employed and entrepreneurs that require credit to undertake projects in Spain. This year ICO is also launching the new ICO Commercial Credit facility, to provide SMEs with liquidity by factoring their invoices. This facility will complement the wide range of financing instruments that the Institute offers to businesses.
The Internationalisation area includes facilities designed to support Spanish companies in their ventures abroad. The ICO International facility has the dual aim of providing companies that invest in other countries with capital, while promoting exports by providing medium and long-term financing. In addition, the ICO Exporters 2016 facility continues to be structured as a key instrument for providing exporters with liquidity by factoring their export-related invoices.
Another new development for 2016 is the increased range of loan repayment terms. Operations now range from six-months through to long-term 20 year transactions, allowing ICO to provide companies with maximum flexibility in financing their projects.
ICO financing facilities are offered through private Spanish credit institutions. This collaboration between ICO and the private financial sector enables ICO financing to reach companies throughout Spain. Thanks to this partnership, ICO's financing facilities -with a history of more than 20 years- have become leading products for funding SMEs and the self-employed in Spain.
ICO's lending activities play an important role in the Spanish financial system. Through its facilities, it adds value to the business sector, supports activities that promote economic growth and job creation, and helps to position our companies abroad.
Results from ICO facilities in 2015
In 2015, ICO facilities distributed €9.671 billion in loans, providing financing for 165,998 transactions.
The facilities benefit from extensive reach and most loan recipients were self-employed individuals or micro-enterprises with less than 9 employees, accounting for 66% of all transactions. Moreover, 54% of loans were for less than €25,000.
The SMEs and Entrepreneurs facility was the most popular line, with €6.528 billion distributed through 121,853 transactions.
Facilities supporting business internationalisation continued to perform well, accounting for 32% of all granted loans. Of these, the short-term ICO Exporters facility experienced the most demand, with 43,416 transactions financed with a total of €2.934 billion. In the case of the ICO International facility, some 418 loans were made totalling €171.15 million.
In terms of the geographic distribution of the transactions, SMEs and the self-employed in the Catalonia region were the leading beneficiaries accounting for 15% of the total, followed by Madrid (14%) and Valencia (13%).
The distribution by sector shows that companies in the wholesale, manufacturing and haulage and storage sectors received the most financing, accounting for 18%, 11% and 10% of the agreed loans, respectively.