EIB and BPI Launch €190M Green Credit Plan to Support Portugal’s Mid-Caps

In a strategic move to strengthen Portugal’s economic resilience and drive its green transition, the European Investment Bank (EIB) and Banco BPI have signed a landmark agreement to create a new credit portfolio of up to €190 million. The funding will target mid-cap companies, offering them improved credit conditions for investments in strategic and sustainable sectors, with a special focus on firms located in priority cohesion regions.

The agreement reflects a shared commitment to regional development, innovation, and environmental sustainability, while facilitating easier and more favorable access to finance for Portugal’s vital mid-sized enterprises.

De-risking Investment Through EIB Guarantee Support

The financing initiative is underpinned by a €100 million EIB guarantee operation, designed to mitigate credit risk and stimulate lending activity by BPI. The structure includes two tiers of guarantee support:

• 75% credit risk coverage for loans focused on energy efficiency and renewable energy projects—aligned with EU climate and sustainability targets.

• 50% credit risk coverage for the remaining eligible loans in the portfolio.

This setup allows BPI to extend low-interest loans with more flexible terms, reducing borrowing costs for mid-cap firms while incentivizing investment in green technology, infrastructure, and digital transformation.

Empowering Mid-Caps: The Backbone of the Economy

Mid-cap enterprises—companies that are larger than small businesses but not quite large corporations—are crucial to Portugal’s economic performance. They drive job creation, innovation, and export growth, and are considered key to achieving balanced regional development.

Gemma Feliciani, Head of the EIB’s Financial Institutions Department, emphasized the strategic value of the agreement:

“Mid-caps are fundamental to the Portuguese economy. This operation will enable the provision of loans under better financing conditions for investments to bolster productivity, innovation and environmental sustainability.”

The initiative ensures these companies can access tailored financing solutions at a time when inflationary pressures, energy costs, and market uncertainties are affecting their long-term planning capabilities.

BPI's Vision: Sustainable Finance and Regional Equity

Ana Rosas Oliveira, Executive Board Member at BPI, reaffirmed the bank’s role in advancing inclusive and green economic development:

“This initiative demonstrates our ongoing shared commitment to supporting mid-cap companies by providing them with the resources they need to grow and improving credit conditions. Additionally, we are fostering new investments, innovation and the green transition. The loans are expected to benefit companies operating in less developed regions of Portugal, emphasizing our strategic focus on enhancing the competitiveness of the business sector and promoting regional convergence.”

The project strategically prioritizes companies in Portugal’s cohesion regions, which are recognized as less economically developed and often face structural challenges. Supporting these regions is critical to ensuring national economic convergence and cohesion, a key principle of EU development policy.

Supporting the Green and Just Transition

This operation is part of the “Growth for Midcaps” guarantee instrument, an EIB initiative launched to share credit risk with European banks and catalyze private-sector investment in the real economy. Since 2023, this marks the fifth such operation approved in Portugal, illustrating strong momentum in the country’s uptake of the instrument.

The financing also dovetails with the EU Green Deal, reinforcing Portugal’s commitment to a low-carbon, energy-efficient economy. By easing access to capital for companies pursuing sustainability goals, the EIB and BPI are helping accelerate the transition to a just, inclusive, and green future.

Outlook: A Robust Financing Ecosystem for Mid-Caps

This €190 million portfolio stands to reshape Portugal’s mid-cap financing landscape, particularly by:

• Encouraging investment in energy-efficient technologies

• Enhancing regional economic resilience

• Improving access to credit for companies in underserved markets

• Fostering job creation and climate-smart industrial growth

With continued support from the EIB and domestic financial partners like BPI, Portugal is well-positioned to build a more innovative, equitable, and sustainable economy—one that empowers businesses and regions alike.