The Banking & Finance team of King & Wood Mallesons (KWM) has advised the European Investment Bank (EIB) on the granting of a €300 million guarantee to BBVA through a risk-sharing operation (portfolio guarantee), which will allow the EIB and the Spanish bank to share risks. The agreement between the two financial institutions will allow BBVA to provide €600 million to support investments of small and medium-sized enterprises.
Of the total guarantee provided by the EIB, €150 million is backed by European Commission's Investment Plan for Europe (known as the "Juncker Plan"). This programme enables the EIB to finance projects with a higher risk profile.
The KWM deal team was led by Banking & Finance partner Joaquín Sales, in collaboration with senior associate María Redondo and associates Juan Luis García and Ignacio Goicoechea.
The €600 million in financing to be provided by BBVA under this agreement will mainly benefit small and medium-sized enterprises located in regions of Spain with high unemployment rates.