Banco Santander and the European Investment Bank (EIB) have signed a guarantee agreement to mobilize approximately €300 million in new financing for small and medium-sized enterprises and mid-cap companies linked to the supply chains of Europe’s security and defense industry.
The loans may cover productive investment, capacity expansions, working-capital needs and the development of new technologies, including those with military and civilian applications. According to the EIB, some of these companies face difficulties obtaining the resources needed to undertake investments or fulfill new contracts.
The transaction is part of an EIB pan-European intermediated financing facility, with €3 billion in funding and channeled through banking institutions. The guarantee will enable Santander to expand the financing it offers to smaller businesses and mid-cap companies.
It is Santander’s second specific transaction with the EIB in the security and defense sector. An earlier deal helped mobilize €400 million for companies in the sector and was part of a €900 million package of agreements aimed at various strategic sectors.
The EIB says its security and defense investments quadrupled in 2025 and exceeded €4 billion. For 2026, it expects to surpass €5 billion, equivalent to 5% of its total investments. In Spain, the EIB Group allocated €500 million to this priority during 2025.
