The European Investment Bank (EIB), the European Union’s long-term lending organization, has granted Banco Santander Brasil a loan of $166 million for lending to private small and medium enterprises and midcap companies in Brazil.
“This operation is the first product of our collaboration with Santander Brasil in our efforts to support Brazilian small- and medium-sized enterprises (SME),” EIB Vice President Román Escolano said. “This collaboration will allow us to finance the activities of a larger number of private businesses.”
SMEs, firms with up to 250 employees, and midcaps, firms with up to 3,000 employees, will benefit from favorable interest rate and maturity terms. The funds may be used to finance new investment projects or working capital.
A new European Union lending external mandate for the period 2014-2020 that sets a ceiling of nearly $2.5 million for operations in Latin America was made effective on July 1, 2014. The EIB is granting this loan under a mandate that allows it to support investments promoting the local private sector, developing economic and social infrastructure and lessening the effects of climate change.
The EIB has provided finance of about $7.75 billion for long-term investment projects in 13 countries in the region since launching its financing operations in Latin America in 1993.
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