EIF and CGD join forces to promote investments in the education sector in Portugal

EIF and CGD join forces to promote investments in the education sector in Portugal

  • EIF guarantee of up to €25 million to CGD to facilitate access to finance for companies offering training and education services.
  • The agreement is backed by the EFSI Skills & Education Guarantee Pilot.

The European Investment Fund (EIF), part of the European Investment Bank Group, provided Caixa Geral de Depósitos, SA (CGD) with a guarantee of up to €25 million to promote investments in the education sector in Portugal. The agreement is backed by the EFSI Skills & Education Guarantee Pilot, a debt financing initiative launched in 2020 dedicated to stimulating investments in education, training and skills

Thanks to EIF support under the EFSI Skills & Education Guarantee Pilot, CGD will develop two loan products aimed at increasing its lending capacity to both Portuguese companies that invest in the upskilling of their employees and to organisations that offer education and training services. The EIF will assume 80% of the risk of debt financing granted by CGD to Portuguese companies and organisations.

Nicolas Schmit, European Commissioner for Jobs and Social Rights, said: “To achieve an inclusive and long-lasting recovery from this crisis, investing in education and lifelong learning is paramount. Thanks to the support of the EU budget guarantee, the European Investment Fund and Caixa Geral de Depositos are partnering up to provide financing to Portuguese companies wanting to invest in reskilling and upskilling of their employees. I applaud this innovative approach and hope that many other companies and organisations follow their example.”

Alain Godard, EIF Chief Executive, said: “We are delighted to partner-up once again with Caixa Geral de Depósitos, this time to support companies and organisations in Portugal that are active in the education sector. Investing in upskilling and training services mean investing in our future, contributing to economic growth, competitiveness, innovation and employment. These are indispensable elements in ensuring an inclusive recovery from the COVID-19 pandemic.”

Paulo Moita de Macedo, CEO of Caixa Geral de Depósitos, said: “Professional qualification should be continuous throughout life. Supporting companies in the continuous training of their employees is a fundamental step to guarantee their future.”

CGD is a long-standing counterpart of the EIB Group, having benefited over the years from different mechanism and facilities, including: the InnovFin SME Guarantee Facility, the COSME Loan Guarantee Facility, the CCS Guarantee Facility and the ESIF EAFRD Portugal Mainland Fund of Funds. Moreover, last month, the EIF and CGD signed the first two agreements in Portugal under the Pan-European Guarantee Fund (EGF) for a total of €1.050 billion.

Background information

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research, and development, entrepreneurship, growth, and employment.

The Skills & Education Guarantee Pilot (S&E Pilot) is a debt financing initiative dedicated to stimulating investments in education, training and skills – as part of the solution to get more people into jobs and to better respond to the European economy’s changing needs. Investments in skills contribute to growth, competitiveness and social convergence, while addressing the challenges linked to digital transformations and the transition to a carbon-free economy.

The EIF implements the S&E Pilot on behalf of the European Commission and thus, the initiative benefits from the EU’s budget support under the European Fund for Strategic Investments (EFSI), main pillar of the Investment Plan for Europe.

Caixa Geral de Depósitos, is the Portuguese leading financial group with more than 143 years and sound international presence. It is committed to its leading role in the recovery and internationalization of the Portuguese economy.

Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1849

Photo Credit : https://pixabay.com/photos/pc-websites-computer-classroom-1605658/

%d bloggers like this: