Knowledge 5 Financing Sustainability

FINANCING SUSTAINABILITY | Taxonomy

Incentives | Capitalization Instruments | Debt Instruments

Jun 2022

Taxon.o.mia as a catalyst for sustainable investment

 

 "Let's not wait any longer for the less ambitious and slower... Let's turn climate into a competitive advantage rather than a cost." We began 2022 with these words from Olaf Scholz - Germany's new Chancellor - in Davos, at the annual conference of the World Economic Forum (WEF), which underline the call for an unquestionable paradigm shift in climate policy, and which make this moment one of the most crucial in the WEF's fifty-year history. At an unprecedented time, when the world is recovering from a global pandemic and facing humanitarian emergencies and energy security issues, we are witnessing a unique attempt to guide actions, without losing sight of the commitments inherent in the fight against climate change, in an attempt to contain the devastating impacts of the climate and ecological crisis we are going through.

Redirecting investments towards more sustainable technologies and companies is precisely the aim of the European Taxonomy Regulation. In pursuit of the commitments and targets set under the Paris Agreement and the European Climate Law, in line with the European Green Deal and the Fit for 55 package, which aims to decarbonize Europe, and in the face of unequivocal and urgent climate action, the need has arisen to leverage new instruments to promote the transition to a new economic model that is more sustainable, resilient and circular. Taxonomy is one of these instruments and, in fact, is seen as an important measure that the EU has taken to create a sustainable financing ecosystem.

Read the full article by the EY team "

 

Sustainable financing and investment - from green to blue

The expression "doing well by doing good" has never been better applied to the financial sector than now, with the growth of sustainable finance in its climate, social and environmental aspects. governance. It is clear that there are enormous opportunities in the transformation towards a more sustainable world, the urgency of which was underlined in the IPCC Sixth Assessment Report. One of the sectors where opportunities have become more evident is the blue financededicated to financing the economy of the sea, in particular the sustainable blue economy.

To set the scene, let's remember that the ocean represents more than 70% of the Earth's surface and that more than three billion people depend on marine and coastal biodiversity. It also absorbs around 30% of the carbon dioxide produced by humans. The ocean economy encompasses economic sectors from the most traditional to the most innovative - food, transportation, ocean energy, bioeconomy and biotechnology. In 2016, the OECD projected that, in a "business-as-usual" scenario, the ocean economy could double its contribution to global added value, reaching more than 3 trillion dollars. In Portugal, with one of the most extensive exclusive economic zones and vast maritime biodiversity, the opportunity is more obvious. The ocean can be a source of food, clean energy and jobs, and an essential pillar for sustainable growth. In Portugal, the blue economy represents around 5% of exports and GDP and 4% of employment - and it is relatively unanimous that this figure could double.

Continue reading the PLMJ team's article here"

Thematic Categories

The contents of this publication will be organized into the following chapters:

Incentives

The incentives are mechanisms to stimulate business investment, usually supporting projects to create or expand production capacity, projects to improve skills in dynamic competitiveness factors and internationalization projects. Incentives can be financial (refundable or non-refundable) or fiscal in nature.

Capitalization Instruments

Capitalization instruments are mechanisms to facilitate access to capital for companies, usually in the form of equity or quasi-equity investments. Typically, they are implemented through venture capital funds (namely seed and early stage) or business angels.

Debt Instruments

Debt instruments are mechanisms to facilitate access to capital for companies that are repayable in nature. They usually take the form of credit lines, bonds, guarantees or other risk-sharing instruments. They are typically implemented through banks (including development banks) or capital markets.
Disclaimer: The compilation of financial instruments presented in this newsletter is not, and is not intended to be, exhaustive. This newsletter brings together only some of the instruments available, which are considered to be of particular relevance to the subject in question, and none of the entities collaborating on this compilation is responsible for an exhaustive compilation of the information available. Furthermore, this newsletter is not intended for any particular entity or situation and is therefore not a substitute for professional advice.

Incentives

INCENTIVE PROGRAMS IN THE SPOTLIGHT

 

  • LIFE | Applications open

The LIFE 2021-2027 Program, a financial instrument for the environment and climate action, was established by Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 2021, with a view to contributing to the transition to a sustainable, circular, energy-efficient, renewable energy-based, climate-neutral and resilient economy.

Under this program, which aims to protect, restore and improve the quality of the environment, including air, water and soil, and to halt and reverse the loss of biodiversity and combat the degradation of ecosystems, including by supporting the implementation and management of the Natura 2000 network, thus contributing to sustainable development, various types of support are included, including Standard Action Projects, LIFE Action Grants and Integrated Strategic Projects, whose first calls for proposals have recently opened:

  • Standard Action Projects (SAP) under the circular economy and quality of life, nature and biodiversity, and climate change mitigation and adaptation sub-programs - until October 4, 2022. The maximum incentive rate in this modality is 75%.
  • LIFE Action Grants for the clean energy transition sub-programme, which aims to finance activities that respond to the specific themes defined in the annual calls for proposals based on the list of priority themes, with the aim of facilitating the transition to an energy-efficient, renewable energy-based, climate-neutral and resilient economy, financing coordination and supporting actions across Europe - until November 16, 2022. The maximum incentive rate in this modality is 95%.
  • Strategic Integrated Projects (SIPs) and Strategic Nature Projects (SNAPs) - submission of concept notes by September 8, 2022, and full proposals by March 30, 2023. SIPs are projects that implement, on a regional, multi-regional, national or transnational scale, environmental or climate strategies or action plans developed by Member State authorities and required by specific Union environmental, climate or energy legislation or policy, while ensuring that stakeholders are involved and promoting the coordination and mobilization of at least one other source of European Union (EU), national or private funding. In the case of SNAPs, these are projects that support the pursuit of EU nature and biodiversity objectives through the implementation of coherent action programmes in the Member States, in order to integrate these objectives and priorities into other policies and funding instruments, in particular through the coordinated implementation of the prioritized action frameworks adopted under Directive 92/43/EEC. The maximum incentive rate in this modality is 60%.
  • Within the scope of these applications, the following are considered eligible beneficiaries: (i) public or private legal persons, registered in the EU or in an overseas country or territory linked to the EU; (ii) third countries associated with the LIFE programme; or (iii) legal entities created under the law of the Union or any international organization. In general, the expenses that are considered eligible are: human resources costs, subcontracting costs, costs for the purchase of goods and services and indirect costs related to the activities to be carried out within the scope of the project. " More information: LIFE - Calls for proposals (europa.eu)

 

  •  Innovation Fund | Small Scale

The Innovation Fund is one of the world's largest funding programs for the demonstration of innovative low-carbon technologies, thus supporting projects aimed at the commercial implementation of these technologies, with the aim of bringing to market industrial solutions that contribute to the decarbonization of Europe and support its transition to climate neutrality.

On March 31, 2022, the European Commission (EC) launched the second call of the Innovation Fund, aimed at small-scale projects, with an investment of between 2.5 and 7.5 million euros per project, aimed at developing highly innovative technologies, processes, business models or products/services, with an advanced Technology Readiness Level (TRL) and the potential to significantly reduce greenhouse gas (GHG) emissions. This call is open until August 31, 2022.

Thus, activities that are considered eligible are:

- They support innovation in low-carbon technologies and processes in the energy, ferrous metal production and processing, mineral industry and pulp and paper manufacturing sectors, including environmentally safe carbon capture and utilization (CCU) - which makes a substantial contribution to mitigating climate change - as well as products that replace carbon-intensive products.

- They help to stimulate the construction and operationalization of projects aimed at the capture and geological storage of CO2 in an environmentally safe manner (CCS):

- They help stimulate the construction and operation of innovative renewable energy production and storage technologies.

The promoters of the candidate projects must have sufficient know-how, qualifications and resources to successfully implement the projects and clearly demonstrate their contribution to the project (including sufficient experience in projects of a comparable size and nature).

All applications will be assessed on various parameters related to: (i) degree of innovation (innovation of the solution to be developed, compared to the state of the art; (ii) GHG emission avoidance potential; (iii) project maturity; (iv) scalability; (v) cost-benefit analysis; and (vi) quality and credibility of the cost calculation.

The support will be given in the form of a lump sum grant, which means that it will be fixed by the competent authorities on the basis of the relevant project costs, at a maximum funding rate of 60%. " More information: Innovation Fund's second small-scale call for projects (europa.eu)

 

  •  Registration of Aid Request | SI Productive Innovation and SI R&TD

The Aid Application Register is a mechanism created to allow investment projects to be started under various incentive systems (SI), in periods when it is not possible to formalize an application because there are no open calls for these measures.

The current period of transition between EU programs is causing increased difficulties in terms of the timely operationalization of support, which may create constraints on the implementation of potential investments, which urgently need to be initiated in order to take advantage of market opportunities, reoriented towards more innovative, sustainable and knowledge- and technology-intensive production models, which include a greater capacity to generate added value and strengthen companies' external competitiveness.

It is therefore important to guarantee the conditions that allow entities to start their projects. For this reason, at the beginning of June, the Notices of Application for Aid (RPA) for Technological R&D (no. 01/RPA/2022) and Productive Innovation (no. 02/RPA/2022) were opened, under the terms of Article 6 of Commission Regulation (EU) no. 651/2014 of June 16 (GBER).

In the case of the RPA for R&TD, it can be used by the respective beneficiary(ies) for the purposes of defining the start of the project, in application processes for SI R&TD, within the scope of the tenders to be launched, thus fulfilling the condition set out in Article 6(2) of Commission Regulation (EU) No 651/2014 of June 17, 2014, which stipulates that projects must have an application date, or aid application registration, prior to the start date of the work. Within the scope of this SI, eligible beneficiaries are Companies of any nature and in any legal form and/or non-business entities in the R&I System.

On the other hand, as far as the RPA for Productive Innovation is concerned, it can be used by SME companies for the purpose of defining the start of the project, in application processes for the Productive Innovation Incentive System, within the scope of the tenders to be launched, thus considering that the condition set out in Article 6(2) of Commission Regulation (EU) No 651/2014 of June 16 is met, which states that projects must have an application date, or aid application registration, prior to the date of commencement of work and investments.

In both cases, these aid application registrations only guarantee that investments made after they are submitted will remain eligible. The entities that submit them will subsequently have to prepare and submit an application for financial incentives, as soon as the Notices make this possible. The project presented in this application must correspond to the one submitted in the aid application, without prejudice to justified changes that are accepted during the analysis of the application.

Other more specific conditions, such as funding rates, eligible expenditure items, etc., will only be known once the Call for Tenders has been issued. " More information: Notices (compete2020.gov.pt)

 

NATIONAL INCENTIVE PROGRAMS NATIONAL

 

  • Environmental Fund

The purpose of the Environmental Fund is to support environmental policies for the pursuit of sustainable development objectives, contributing to the fulfillment of national and international objectives and commitments, namely those relating to climate change, water resources, waste and the conservation of nature and biodiversity.

It is expected that, in accordance with Order no. 3143-B/2022, new Calls for Tenders will be launched under this Fund during 2022. " More information at: Environmental Fund, Ministry of the Environment

  •   Portugal 2030

Portugal 2030 materializes the Partnership Agreement to be established between Portugal and the European Commission, setting out the main strategic objectives for the application, between 2021 and 2027, of the global amount of 24,182 M€, from the European Regional Development Fund (ERDF), the European Social Fund + (ESF+), the Cohesion Fund, the Just Transition Fund (FTJ) and the European Maritime, Fisheries and Aquaculture Fund (EMFAF).

Its programming is based on the five strategic objectives of the European Union: a smarter, greener, more connected, more social Europe that is closer to its citizens.

The first calls for tenders under this program are expected to be launched in the second half of 2022. " More information at: What is Portugal 2030 | PT2030

 

  • PRR | Climate Transition

The Climate Transition dimension is the result of Portugal's commitment and contribution to the climate targets that will enable it to achieve carbon neutrality by 2050. The decarbonization of the economy and society offers important opportunities and prepares the country for the realities that will shape competitiveness factors in the near future.

With a budget of around 3 billion euros, this dimension includes support for sustainable mobility, decarbonization of industry, the bioeconomy, energy efficiency in buildings, hydrogen and renewables.

There are currently 3 open Calls for Tenders related to Support for the Decarbonization of Industry, Support for the Renovation and Increased Energy Performance of Service Buildings and Boosting Renewable Electricity in the Madeira Archipelago. " More information at: Climate Transition (recuperarportugal.gov.pt)

 

INTERNATIONAL INCENTIVE PROGRAMS

 

  • Horizon Europe

Horizon Europe is the European Union's new framework program for research and innovation (R&I) for the period 2021-2027. It is the EU's main funding program for research and innovation, with a budget of 95.5 billion euros.

The program aims to strengthen the EU's scientific and technological base, in particular by developing solutions to materialize political priorities such as the green and digital transitions.

One of the topics highlighted in this program is Transport and Energy, where there are several calls open until September 6, 2022. " More information at: Search Funding & Tenders (europa.eu) | Horizon Europe

 

  •   CEF Energy

In the energy sector, the Connecting Europe Facility (CEF) aims to contribute to greater integration of the European energy market by improving the interoperability of energy networks across borders and sectors, facilitating decarbonization and ensuring security of supply. Funding will also be available for cross-border projects in the field of renewable energy generation.

CEF 2021-2027 emphasizes synergies between the transport, energy and digital sectors and promotes cross-sectoral work in areas such as connected and automated mobility and alternative fuels. The programme also aims to mainstream climate action, taking into account the EU's long-term decarbonization commitments, such as the Paris Agreement.

There are currently two open calls, until the beginning of next September, related to the development or implementation of electricity, gas, smart grids and CO₂ networks. " More information at: Connecting Europe Facility 2021-2027 adopted (europa.eu)

 

  • European Maritime, Fisheries and Aquaculture Fund (EMFAF)

The European Union (EU) has a responsibility to protect and sustainably use the oceans and their resources, and it is also in the EU's socio-economic interest to ensure the availability of food, the competitiveness of the maritime economy and the livelihoods of coastal communities. Running from 2021 to 2027, and with a budget allocation of 6.108 billion euros, the EMFAF supports the EU's Common Fisheries Policy, the EU Maritime Policy and the EU Agenda for International Ocean Governance.

This program aims to support the development of innovative projects that ensure the sustainable use of aquatic and maritime resources.

Currently, the only open call relates to gender equality, promoting that this sector embraces a deep and structural change to facilitate and promote the inclusion of women in the maritime economy. However, it is hoped that in the future new calls for tenders will open that are more focused on the sustainability of aquatic and maritime resources. " More information at: emfaf (europa.eu)

CAPITALIZATION INSTRUMENTS

 CAPITALIZATION INSTRUMENTS IN THE SPOTLIGHT

STAG is a Portuguese Venture Capital Fund Manager, founded in 2020, at the height of the Covid-19 pandemic. The funds they manage are dynamic and innovative and offer new opportunities and growth potential.

The Pela Terra Farmland FCR fund prioritizes stability and sustainability by financing the purchase of quality farmland and using long-term contracts to guarantee a fixed rate of return for large-scale farm operators, while capitalizing on the appreciation in land value over the life of the fund. This fund was created to accelerate the transition to environmental farming practices and a resilient food system, while providing deep and reliable roots for a diversified investment portfolio.

Insula Capital - Sociedade Gestora de Organismos de Investimento Coletivo is a public limited company that began operating in 1987, with an indefinite duration. Being totally independent from real estate market agents (consultants, appraisers and others) or financial market agents (banks and other financial institutions), the company seeks to exclusively look after the interests of investors. The majority of its capital is held by senior management.

Gaia Investment Fund is a private equity fund that invests in and develops projects in vineyards and wine, as well as forestry, starting with cork, under the ethos that "green business is the key to driving the change that is sought worldwide". The organization believes that investment in land and agricultural activities, combined with production, bio-improvement and brand innovation, represent a safe bet in a global context where demand for these products is increasing.

 

  • Banco Português de Fomento - Portugal Blue | Investment focus: Blue Economy sectors (broad spectrum of economic activity sectors linked to the seas and oceans, including traditional or established sectors and emerging sectors).

Portugal Blue is operationally managed by the European Investment Fund (EIF), in accordance with a management mandate granted by the Banco Português de Fomento (BPF) under the framework agreement with the European promotional banks.

This fund focuses on investing up to €50,000,000 in Startups, SMEs and Midcaps, to subscribe to Venture Capital Funds (VCFs) focused on investments in technology transfer, venture capital,early-stage capital andgrowth capital in blue economy projects.

 

  • Indico Capital Partners - Indico Blue Fund | Investment focus: technological areas (AI, fintech, big data, IOT, etc.) and sustainable ocean areas linked to climate action (e.g. coastal tourism, sustainable aquaculture, renewable ocean energy, blue biotechnology).

Indico Capital Partners is a venture capital firm based in Portugal. Although the company is based in Europe, it holds many international assets, such as family offices in Europe, the USA and Asia.

The €50 million Indico Blue Fund (pre-seed and growth phase) targets domestic and foreign startups and SMEs exporting in the "Blue Economy" (technology to help the oceans), particularly those operating in the areas of sustainable aquaculture and fishing, blue biotechnology, the digital ocean, waste and the circular economy, green transportation, ocean renewable energy and other activities.

 

Banco BPI presents a set of 5 "BPI Impacto Clima" sustainable investment funds: BPI Impacto Clima Moderado, BPI Impacto Clima Dinâmico, BPI Impacto Clima Agressivo, BPI Impacto Clima Obrigações and BPI Impacto Clima Ações.

These funds contribute to climate action, sustainable production and consumption and renewable energies, thus respecting the UN SDGs (Sustainable Development Goals).

 

  • Amazon - Climate Pledge Fund | Investment focus: circular economy; food and agricultural sector; renewable energy; transport and logistics; production and materials.

In 2020, Amazon launched the Climate Pledge Fund, a dedicated investment program with initial funding of $2 billion (1.8 billion euros) to invest in companies developing products, services or technologies linked to environmental sustainability. The aim is to help the e-commerce giant become carbon neutral by 2040).

 

Banco BNP Paribas has three relevant funds in the field of sustainability: Funds Aqua Classic Capitalisation, which invests in shares of companies in the water sector and/or related sectors, in order to benefit from the expected future growth in this area and contribute capital to the transition to an inclusive low-carbon economy; Funds Climate Impact N Capitalisation, which invests globally in shares of companies focused on adapting to or mitigating climate change; and Funds Energy Transition N Capitalisation, which seeks to increase the value of its assets by investing globally in shares of companies active in the energy transition (e. g. renewable and transactive energy in sustainable transport, green buildings and infrastructure).e.g. renewable and transactional energy, energy efficiency in sustainable transportation, green buildings and infrastructures).

 

OTHER NATIONAL CAPITALIZATION INSTRUMENTS

  • Blue Crow Innovation Funds | Investments in the areas of Environment (industry, services and management); Energy (production and management systems); Fintech; Industry 4.0; Internet of Things.
  • EDP Ventures | Investments in Cleantech; Energy Efficiency; Energy (production and management systems).
  • Novo Banco Group - Momentum Sustainable Fund | Investments in Technology, Cyclical Consumption, Financial Activities, Pharmaceutical Industry, Natural Resources, Industrial Activities, Energy, Utilities, Telecommunications.
  • HCapital - New Ideas Fund | Investments in the areas of Agriculture and agro-industry; Food; Cleantech; Energy efficiency; Electronics; Energy (production and management systems); Habitat (construction, ceramics, furniture, metal products, others); Industry 4.0; Internet of Things; Health (pharmaceuticals, services); Information and Communication Technologies; Production Technologies.
  • IM Gestão de Ativos - Iberia Equities ESG | The Fund essentially follows a bottom-up process that does not privilege specific sectors or capitalization values, focusing mainly on companies that adopt best practices in terms of governance, human rights and the environment and refraining from investing in controversial sectors (e.g. tobacco, gambling, personal weapons).
  • GED Ventures Portugal | The company follows the ESG-friendly ethos in all its investments, including monitoring and evaluation of ESG metrics and planning.
  • impACT Now FCR | Investment strategy exclusively focused on the 2030 Sustainable Development Goals.
  • Beta | Investments in life sciences, biotechnology, information technology, energy.
  • Change Partners | Investments in biotechnology, digital health, energy efficiency.
  • ECS | Investments in the areas of energy efficiency, recovery, tourism and energy.
  • Bright Ventures Capital, SCR, S.A | Investments in the areas of Renewable energies, Energy efficiency, Advanced materials, Green chemistry, Renewable fuels, Information technologies.
  • CREST - Capital Partners | Crest is a private equity management company dedicated exclusively to investing in solid and competitive Portuguese companies.
  • Mustard Seed Maze | Investments in the areas of social and environmental challenges.

 

OTHER INTERNATIONAL CAPITALIZATION INSTRUMENTS

 

  • Echiquier Major | Investment fund that prioritizes investments based on social, environmental and governance criteria.
  • | Investment fund that prioritizes investments in European companies that seek to respond to sustainable development challenges.

DEBT INSTRUMENTS

FEATURED DEBT INSTRUMENT PROGRAMS

  • ESG Bonds | CGD's first Green Bond issue | Investment focus: improving the energy efficiency of buildings and increasing the use of renewable energies.

Caixa Geral de Depósitos (CGD) issued its first senior preferred green bonds to institutional investors in June 2022, for 300 million euros, over four years, with the possibility of repayment after 3 years and an interest rate of 2.9%. This operation was set up with the aim of directing the funds raised towards financing mortgage loans for properties with class A+, A and B energy certificates.

This issue will be promoting the energy efficiency of buildings and the use of renewable energies, thus contributing to reducing the ecological footprint of this market segment and increasing the share of renewable energies in Portugal's energy mix, with the ultimate aim of addressing the United Nations' Sustainable Development Goal 7 on Clean and Affordable Energy.

In total, the issue received orders from investors from 12 different countries, of which 21% came from France, 20% from Spain, 14% from Portugal, 11% from Germany and 10% from the United Kingdom. As for the type of investors, investment funds stand out, accounting for 80% of the total issue. The "green" nature of the bond made it possible to attract ESG investors, who took around 78% of the issue's allocation.

The Joint Lead Managers for this operation were CaixaBI, Commerzbank (B&D), Credit Suisse, JP Morgan and Société Générale.

Despite being CGD's first green bond issue, this is CGD's second ESG ( Environmental, Social and Governance) bond issue, which comes as part of one of the institution's commitments in the field of sustainable and inclusive financing, one of the five strategic areas for 2021-2024 designed to materialize CGD's vision of being a leader in ESG and Sustainable Financing in Portugal. " More information: CGD Press Release (CMCV) & Investor Presentation

 

  • Credit Line | BPI ESG Companies | Investment Focus: support for the ESG transition of MSMEs.

BPI has a credit line of 500 million euros, in the form of a fixed-term loan, to support companies' ESG transition. This line is a financing solution to support companies in their investments in the environmental, social and governance dimensions and/or to support their ESG strategy.

This line, framed as a sustainable financing solution, is aimed at Micro, Small and Medium-sized Enterprises, including Individual Entrepreneurs, located in Portugal and with SME certification issued by IAPMEI. Beneficiaries will be included on the BPI list of companies with financing for sustainable transition.

With a minimum amount of 25,000 euros and a maximum of 10 million euros per operation, the line benefits from an extended term to support this transition, with a maximum of 10 years, offering variable and fixed rate modalities, with a repayment plan adjusted to the client's needs. Eligibility is verified through the Declaration of Commitment and the ESG Questionnaire, which defines the type of investment or the selection of indicators related to meeting ESG goals or objectives.

It should also be noted that BPI recently released its BPI Sustainability Master Plan 2022-2024, where it made a commitment to mobilize 4 billion euros in sustainable business volumes by 2024, of which 2 billion will be for financing the sustainable transition. " More information: BPI ESG Companies Line (bancobpi.pt) & BPI wants 4 billion euros in sustainable business by 2024 (bancobpi.pt)

 

  • Credit Line | Banco Montepio +Impacto Social | Investment Focus: to support the social economy and promote social inclusion.

Banco Montepio offers a line of credit for Social Economy Entities (SEEs) and other non-profit social entities, with the aim of supporting these institutions and promoting social inclusion.

To access this line, entities must prove their social nature, have a turnover of less than 30M€ and an annual balance sheet of less than 30M€ and submit a report identifying the proposed results and the expected impact and annual impact measurement reports, according to a set of indicators agreed with the Bank.

The maximum amount of financing is €500,000, with a term of up to 10 years, Investment and International Operations credit types and an 80% capital guarantee. The main advantages of this line are that it is a medium-long term line with a mutual guarantee and that it gives a financial benefit of 0.35% on the defined interest rates. " More information: Line of Credit + Social Impact | Banco Montepio

 

  • Credit Line | Santander FEI AGRI | Investment Focus: to support investment in the agricultural and agro-industrial sectors.

In the special lines of credit for companies, Santander offers a line dedicated to the development of the agricultural and agro-industrial sectors, through a guarantee agreement with the European Investment Fund (EIF).

Aligned with the PDR 2020 (Rural Development Program), the line is suitable for investing in farm projects and processes for processing and marketing agricultural products, promoting the sustainability and growth of regions and supporting investment by young farmers, stimulating the growth of businesses capable of creating wealth and jobs.

This line is aimed at individual entrepreneurs and companies resident and operating in mainland Portugal, with activities associated with the agricultural sector or agro-industry, and must meet, among other things, an additional set of criteria associated with the specific investment project proposed.

With this solution, Santander offers competitive financing conditions, namely in terms of spreads and extended terms (15 years for SMEs and 10 years for SMEs), with a 70% guarantee from the EIF and a maximum financing amount of €3,000,000. " More information: Santander guaranteed financing - EIF AGRI Line

 

OTHER NATIONAL DEBT INSTRUMENTS

 

OTHER INTERNATIONAL DEBT INSTRUMENTS

 

We follow the evolution of the various sources of funding available to finance the transition to sustainability in companies. Check out the other issues and themes:

Green Bonds " | Recovery and resilience plan " | Recovery and resilience plan - update "