May 16, 2021

Banco Santander launches a debt fund to finance companies – La Provincia

Banco Santander launches a debt fund to finance companies - La Provincia


TheSantander Bankhas launched the marketSmart Fund,the oldestprivate debt fund in Spainendowed with620 million euros and intended to finance the long-term growth of companies that bill up to 100 million euros.

The entity chaired by Ana Patricia Botínofferswell anew way of financing companiesfor "projects with criteria of growth, sustainability, innovation, digitalization and employment generation".

The Smart Fund will havethree lines of action,They are determined based on the billing and the duration of the investment. So things,the first linecalledSmart Impulse Fund, is intended for companies that bill up to 3 million euros, with an exponential growth in revenues and seeking a maximum of 2 million financing up to five years. It has an endowment of 20 million euros and will be invested mainly through ordinary and subordinated debt, although other formulas such as convertible financing are also planned.

TheSmart Growth Fundis the evolution of the current Advance Fund, which has financed SMEs since 2014, andit expands to 500 million. This line seeks to help companies with a turnover of between 3 and 100 million euros, which present growth in EBITDA and which need financing for an amount between 1 and 15 million euros, with a maximum term of ten years. This instrument will materialize through ordinary and convertible debt.

The third line is the one calledSmart Progress Fund. This fund is destined to projects already consolidated, that have between 10 and 100 million of income, a profitable growth and that look forbetween 1 to 10 million financing, within a period of ten years.

"We are thus fulfilling our mission of being a responsible bank that supports the progress of companies," said Santander Spain CEO, Rami Aboukhai, with the Smart Fund, strengthening the long-term relationship with our customers. "We accompany companies in all their phases of development and offer strategic financing designed to promote projects that are committed to sustainable growth, innovation, digitalization and job creation," adds Aboukhai.

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