2017: AN EXCEPTIONAL YEAR FOR EIB GROUP ACTIVITY IN PORTUGAL

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1 years improve lives. together. 2017: AN EXCEPTIONAL YEAR FOR EIB GROUP ACTIVITY IN PORTUGAL EUR million of new financing to support 25 projects Portugal ranks sixth among the EU countries benefiting the most from the EU bank s support as a percentage of GDP Investment Plan for Europe: Portugal among the leading EU countries in terms of approved and mobilised investment in relation to GDP The EIB Group: a key player in the Portuguese economy In 2017, the European Investment Bank (EIB) Group provided a total of EUR million to finance 25 operations in Portugal was therefore a very positive year for EIB Group activity in the country: Portugal was among the 10 EU countries that received the largest financial support from the EIB Group. This financing accounted for about 1% of Portuguese GDP. As a result, Portugal ranks sixth among the EU countries benefiting the most from the EU bank s support as a percentage of GDP. Support for SMEs: since the EIB Group is committed to fostering employment and economic growth, the financing of projects implemented by local SMEs is one of the EU bank s priorities in Portugal. As in recent years, most of EIB Group financing in 2017 targeted small and medium-sized companies; financing for Portuguese SMEs constituted 54% of the EIB Group s activities in the country. EUR million was directed towards assisting Portuguese companies, making it possible to support more than jobs Average EIB Group loan to Portuguese SMEs: EUR Climate change action: 18.9% of EIB Group activity in Portugal in 2017 was dedicated to this goal. Financing focused on sustainable economic growth and upgrading water infrastructure totalled EUR 360 million in 2017, which represents an increase of about 40% compared to Investments in innovation, which are crucial for the competitiveness of companies, accounted for 15.5% of EIB Group activity in Portugal: EUR 295 million that will contribute, inter alia, to improving education, by financing a new university campus, and to supporting the R&D projects of Portuguese companies was also the year of the consolidation in Portugal of the Investment Plan for Europe, better known as the Juncker Plan: since it was launched, the EIB has approved 28 projects in Portugal under this initiative, amounting to around EUR million, which is expected to mobilise around EUR million in additional investment. Last year, this financing accounted for 19% of the EIB Group s activities in Portugal. In terms of GDP, Portugal is among the top beneficiaries of financing under this Initiative. More specifically, the country ranks fourth in terms of expected mobilised investment in relation to GDP under the Juncker Plan. European Investment Bank Signatures in Portugal (in EUR m) European Investment Bank Group Total lending in Portugal in 2017 (in EUR m) EUR million Small and medium-sized enterprises Environment 360 Innovation and skills Source: EIB Infrastructure 228 Source: EIB

2 2 EIB Group activity in Portugal in 2017: EUR million from the EIB to promote inter alia business and innovation, the modernisation of infrastructure, climate action and education. EUR 391 million from the EIF, the EIB Group subsidiary dedicated to supporting SMEs and microfinance. I. THE INVESTMENT PLAN FOR EUROPE 82% of the target achieved at European level 2017 was the year of the consolidation of the Investment Plan for Europe with 717 approved operations totalling more than EUR million, which should mobilise new investments of more than EUR million. The Juncker Plan centres its efforts on promoting investments that spur job creation and economic growth through a more intelligent use of new and existing financial resources. At the same time, it aims to eliminate investment obstacles, and offer better visibility and technical assistance to EU investment projects. Since the launch of the Plan in 2015, the EIB Group, comprising the European Investment Bank and its subsidiary the European Investment Fund, has already achieved 82% of the target set for 2018 of EUR million of new investments. In December 2017, the European Parliament voted to extend and enhance the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe. The new and improved Plan will extend the timeline from mid-2018 to end-2020 and it will increase the investment target from EUR million to at least EUR million. Focus on fostering investments and innovation in the European economy The main objective of the Investment Plan for Europe is to help overcome the investment gap in innovation that has hindered the European economy since To achieve this goal, it is focused on removing barriers to investment through complementary actions at EU and national level. The Juncker Plan seeks to promote strategic investments for the future, innovation, corporate investment, climate action and the digital transition, by providing greater regulatory predictability, removing bottlenecks to investment and further deepening the single market. Portugal among the top beneficiaries As in 2016, Portugal was again in 2017 among the top beneficiaries of the Juncker Plan. Overall, since the Investment Plan was launched, around EUR million of financing has been approved in Portugal, which is expected to mobilise EUR million in additional investment. In this sense, Portugal leads the ranking of the countries that have benefited the most from the Juncker Plan when looking at mobilised investment in relation to GDP. Top five EU Member States in terms of investment mobilised under EFSI/GDP Estonia Greece Bulgaria Portugal Spain Innovation: a priority of the Juncker Plan in Portugal Investment in innovation is crucial to support the competitiveness of European companies and to promote the creation of jobs. Since the Investment Plan for Europe was launched, EUR million of financing has been approved to support innovation in key areas of the Portuguese economy such as the aeronautical industry, energy, health and education. These financing operations are supporting economic growth and employment throughout different regions of the country. Portugal is among the top five EU countries in terms of expected mobilised investment targeted at innovation in relation to GDP. Top five EU Member States in terms of investment in innovation mobilised under EFSI/GDP Finland Spain Greece Poland Portugal

3 3 II. SMEs AND MID-CAPS: SUPPORT FOR EMPLOYMENT IN PORTUGAL In 2017, the EIB Group made available EUR million for SMEs through finance contracts signed with different Portuguese banks. Through this financing, in 2017, the EIB Group supported Portuguese companies which employ more than people. Lending to SMEs in cooperation with the banking sector combines the advantages of the EIB s first-rate access to world capital markets, where it raises most of the funds for its lending activity, with the local network and know-how of domestic partner banks. With this model, the EIB contributes to facilitating Portuguese companies access to funding at favourable interest rates and longer tenors for financing their investments in a variety of sectors of the Portuguese economy. bank MiIlenium, an EIF financial intermediary, he received an EUsupported microloan that helped him carry out his plans. OMA relocated into a bigger building in a quiet neighbourhood by the river, allowing students to be inspired and play in a stimulating environment. As a result of the EIB Group s efforts for Portuguese companies in 2017: the EIB provided finance totalling EUR 631 million to SMEs and mid-caps; the European Investment Fund (EIF) provided EUR 391 million in the form of equity participations or guarantees. In the Portuguese city of Aveiro, José Rodrigues is mostly known to the locals as ZéTó. He is the current owner of the music school Oficina de Música de Aveiro (OMA). Thanks to the Portuguese Restoring economic activity after forest fires: EUR 75 million to BCP to provide financial support to companies affected by the tragedy The tragic wildfires that spread mainly in the north of Portugal in 2017 caused the death of 109 people. The damage also harmed the economic activity of the affected areas. In coordination with the EIB Institute, the EIB provided support through donations for the victims. In addition, in 2017 the EU bank signed a EUR 75 million loan with BCP aimed at financing the small and medium-sized investment projects of SMEs and mid-cap enterprises suffering from the effects of the wildfires. This financing will facilitate their access to credit at advantageous conditions for the acquisition and replacement of equipment, machinery, buildings and working capital so that damaged companies will be able to continue with their former activity. Through this agreement, the EIB will contribute to maintaining employment and economic development in the areas affected by the fires.

4 4 The European Investment Fund (EIF), a subsidiary dedicated exclusively to SMEs In 2017, the EIF: committed EUR 391 million in eight transactions, aimed at raising EUR million of additional investments supported Portuguese SMEs The EIF is the specialist arm of the EIB providing risk financing solutions to financial intermediaries to support SMEs and mid-caps and foster innovation in Europe. In 2017, it committed about EUR million in support of business throughout the EU and mobilised more than EUR million of capital. The EIF approved 345 transactions that will contribute to financing SMEs and mid-caps supporting 1.5 million jobs in the European Union. More information is available at III. SUPPORTING RESEARCH, DEVELOPMENT AND INNOVATION In 2017, the EIB provided a total of EUR 295 million to support innovation in Portugal. With this goal, the EIB contributed to financing investments that foster the training of young people and children s education and promote the competitiveness of Portuguese companies. Fostering the innovative capacity of the Portuguese health industry: first direct loan under the Juncker Plan to a Portuguese mid-cap to finance the new production facility of Laboratórios Basi (EIB: EUR 20 million, Investment Plan for Europe) E F S I Financing the research and innovative activity of Portuguese industry was one of the Juncker Plan s priorities in Portugal in Laboratórios Basi Indústria Farmacêutica, S.A. was the first Portuguese mid-cap company financed under the EIB MidCap Loans for Spain and Portugal Programme, a platform aimed at supporting economic growth and employment by providing financing on advantageous terms to mid-sized companies. With this financing, Laboratórios Basi will develop a new unit that will increase the company s production capacity. This modernisation will accelerate the growth of the firm and also foster its internationalisation by increasing its export capacity. As a result, this investment financed by the EIB will contribute to the creation of qualified employment and to social cohesion. This project is expected to create more than 100 new jobs in the district of Viseu, a region in the interior of Portugal.

5 5 Improving the capacity of leading educational institutions: new NOVA university campus in Carcavelos (EIB: EUR 16 million, Investment Plan for Europe) E F S I Construction of a new m² campus New facilities that will be able to accommodate students The construction of the new campus will improve the teaching and research capacity of one of Portugal s leading business schools. The new Carcavelos facilities will include classrooms, offices, amphitheatres, a library, sports and restaurant facilities, a main auditorium and student accommodation. This project also aims to create the necessary conditions for an academic, professional and social ambience that attracts students from all over the world. Investing in future scientists! Innovative toys designed for fun and learning (EIB: EUR 10 million to Science4you, Investment Plan for Europe) E F S I to finance Science4you s investments for developing new products based on the STEM concept to improve the production processes with new equipment and licences to expand the company s sales to external markets to support the company s strategy to increase its number of employees from 300 to more than 660 by the end of 2020 The EIB is supporting scientific education for children by financing the growth strategy of Science4you, a 100% Portuguese company specialised in developing and producing scientific and educational toys, which has received the financial support of the EIB under the guarantee of the Juncker Plan to improve its innovation and expansion strategy. Most of the company s investments will take place in Portugal over the next three years contributing to the creation of new long-term jobs. Promoting qualified employment by fostering innovation in cohesion areas: a new aeronautical factory in Évora (EIB: EUR 10 million, Investment Plan for Europe) E F S I In 2017, Mecachrome Aeronautica inaugurated in Évora a new plant for manufacturing titanium parts for aircraft engines. The EIB financed the investments with a EUR 10 million loan aimed at supporting the modernisation and expansion of its production capacities for advanced aero-engine and aerostructure components at its factories in France and Portugal. Part of the project scope is focused in particular on the new Évora factory, where the project is expected to create more than 300 new permanent jobs. The investments will also contribute to disseminating knowledge in advanced manufacturing technology and to enhancing the competitiveness of the EU technological industry.

6 6 Guarantees under the EU s research and innovation programme InnovFin (EIB: EUR 150 million) In 2017, the EIB and Banco BPI increased their collaboration to finance innovation in Portugal through a EUR 150 million guarantee to cover the credit risk of new loans for innovation projects implemented by Portuguese businesses. Around 80% of the investments financed will be implemented in cohesion areas of Portugal. IV. ACTION AGAINST CLIMATE CHANGE In 2017, the EIB s contribution towards action against climate change in Portugal totalled EUR 360 million. The EIB Group s contribution to improving sustainable growth was channelled through relevant projects that will have a direct positive impact on citizens lives. The EIB Group also signed agreements with financial intermediaries that will provide funds to finance small companies investments aimed at using more environmentally-friendly production processes to promote sustainable growth. Action against climate change: improved and more sustainable water services in Portugal (EIB: EUR 220 million, Investment Plan for Europe) E F S I In 2017, the EIB approved EUR 220 million of financing for Águas de Portugal and its operating subsidiaries to facilitate improvements to the quality, efficiency and sustainability of water and wastewater services in Portugal, by supporting the construction and renovation of the related infrastructure. The upgrading of Portuguese water infrastructure will also bring important and lasting environmental benefits as it will improve the ecological quality of surface and groundwater resources, triggering more rational use of water resources. More than improvements in water supply networks that will directly benefit Portuguese citizens by increasing both the quality and the coverage of the service in Portugal Efficient Private Housing Programme: improving lives to protect the environment The EIB is contributing with EUR 100 million to co-financing projects under the Casa Eficiente programme, promoted by the Portuguese Republic to finance the individual investments of Portuguese citizens and SMEs implementing residential energyefficiency, water saving or waste management refurbishment projects. The first agreement under this programme was signed in 2017 with Caixa Geral de Depósitos (EUR 30 million loan). Final beneficiaries submit their projects via the Casa Eficiente web portal that will provide an estimate of savings as a result of the energy improvements. The eligible expenditure thresholds per project range between EUR and EUR Increase in the volume of wastewater managed with improved standards by facilitating the construction of new collection and treatment plants Over 8 million people are expected to benefit from improved water services and over 6 million from enhanced wastewater services Creation of more than jobs during the implementation stage

7 7 V. MODERNISATION OF INFRASTRUCTURE: INVESTMENTS TO TRANSFORM THE COUNTRY In 2017, the EIB financed strategic investments in Portugal that will improve citizens lives. A total of EUR 228 million was dedicated to supporting projects that are helping to upgrade and build up new infrastructure in the country. Part of this financing has been provided under the guarantee of the Investment Plan for Europe. Expansion of natural gas distribution networks in Portugal (EIB: EUR 29 million, Investment Plan for Europe) E F S I Sonorgás will be able to expand the distribution of natural gas to small and previously unserved municipalities located in northern Portugal, allowing them to gain access to and benefit from cleaner energy. The project financed by the EIB: involves the construction of 220 km of new distribution pipelines and 19 liquefied natural gas storage stations; reduces greenhouse gas emissions by replacing polluting energies such as fossil fuel-based electricity and liquefied petroleum gas (LPG); is expected to employ more than 900 people during the implementation stage and create 40 new permanent posts for skilled workers. will increase the number of households that will benefit from the natural gas system over the next three years; Regeneration of urban areas in Portugal (EIB: EUR 100 million) The EIB, along with the European Structural and Investment Funds (ESIF) and the European Regional Development and Cohesion Fund, is financing the Instrumento Financeiro para a Reabilitação e Revitalização Urbana (IFFRU), aimed at fostering the social and economic regeneration of urban areas in Portugal and set up under the Portugal 2020 EU Partnership Agreement. The EIB will finance works to rehabilitate buildings for housing, public spaces and infrastructure located in residential areas and city centres, on waterfronts and in former industrial areas. The programme is also aimed at revitalising urban brownfields situated in deprived and degraded neighbourhoods. The project includes relevant investments in energy-efficiency measures, as part of the renovation of buildings that will contribute to reducing pollutant emissions and to climate mitigation. The execution of the project will require around people to be hired during the construction phase.

8 Overall EIB Group achievements in 2017 EUR m* overall financing volume of which EUR m from the EIB and EUR 9 300m from the EIF, a historical record for the EIF The EIB Group signed more than 901 operations in 2017 mobilising EUR m Investment Plan for Europe projects approved by the EIB Group amounted to EUR m, which will mobilise EUR m of investment in the real economy The activity of the EIB Group in 2017 helped to support more than SMEs throughout the EU that are sustaining jobs EUR m of EIB Group support for innovation and skills including education and digital infrastructure EUR m supporting key infrastructure in the transport and energy sectors as well as urban infrastructure EUR m of EIB Group support for SMEs and mid-caps EUR m for environmental projects supporting resource efficiency and sustainability Climate action accounted for 27% of total EIB financing to support the transition to a low-carbon, environmentally-friendly and climate-resilient economy Over 30% of total EIB financing was dedicated to economic and social cohesion to help each EU region achieve its full potential * EIB Group total financing figure excludes overlaps due to joint EIB/EIF operations for SMEs. For further information on the EIB in Portugal: Press contacts: Mercedes Landete U m.landete@eib.org Press Secretariat U press@eib.org General contacts: European Investment Bank in Lisbon Av. da Liberdade 190, 1250 Lisboa, Portugal Information U info@eib.org