The Chairman of the Instituto de Crédito Oficial (ICO), Manuel Illueca, and the CEO of the Institut Català de Finances (ICF), Vanessa Servera, have signed a collaboration agreement that will be implemented through two agreements.

On the one hand, both institutions undertake to take all the steps necessary for the ICF to become an intermediary institution for ICO financing facilities in Catalonia. It will thus become the first public financial institution of an autonomous community to channel funds from the Spanish state public bank to promote projects by self-employed workers and SMEs.

On the other hand, the ICO and the ICF will work to co-finance transformative projects under the España Crece fund. The institution led by Manuel Illueca will thereby draw on the ICF’s regional knowledge and experience to deploy this fund in Catalonia.

“This agreement is part of the strategy the ICO is rolling out to strengthen its regional presence and provide more direct support to the business community,” said ICO Chairman Manuel Illueca.

“With this agreement, we are combining the ICO’s financial capacity and reach with the ICF’s knowledge and experience in Catalonia. We are working together to broaden SMEs’ financing options and support the development of strategic projects,” he added.

“This alliance will enable us to offer more and better public financing both to the companies and organisations that already work with the ICF and to those that do not yet do so. It is a major step forward that will help drive the growth of the Catalan economy, expand the stock of publicly subsidised housing and accelerate the green transition,” said ICF CEO Vanessa Servera.

“We share our mission, vision and values with the ICO, and this agreement is simply the natural outcome of the good relationship between our two institutions,” she added.

ICF, a new intermediary for ICO facilities

The first agreement will make the ICF part of the network of institutions participating in the ICO mediation facilities.

ICO facilities offer short-, medium- and long-term financing to self-employed workers, SMEs and companies in any sector. Under this model, the ICO provides the funds and sets the terms, while the intermediary institutions assess the viability of the transactions and bear the default risk.

The aim is for Catalan companies and organisations to also be able to access ICO facilities through the ICF. In this new role, the institution will diversify its funding sources, as ICO resources will complement those it obtains from financial institutions such as the European Investment Bank (EIB), private banks and the capital markets, enabling it to reach more companies and strategic projects.

A boost for the España Crece fund in Catalonia

The second agreement establishes that the ICO and the ICF will work to jointly finance transformative projects in Catalonia in the fields of housing, the green transition and innovation, within the investment strategy of the España Crece fund.

España Crece is a state programme that provides long-term continuity to the Recovery, Transformation and Resilience Plan. In total, it is expected to grant up to €60 billion in financing and guarantees and to mobilise up to €120 billion with private sector co-investment.

Greater institutional collaboration

The agreement also creates an institutional collaboration framework between the two public banks, under which both institutions will meet regularly to work on matters of common interest, such as new areas of activity, legislative initiatives, market financing gaps or new products.

The agreement also provides for exchanges between the professional teams of both institutions, for a duration to be agreed, to share knowledge and experience and enrich the work of both organisations.