Santander and the European Investment Bank (EIB) have agreed €528mn of funding for SMEs and infrastructure projects in Spain.

The funding is broken down into three specific loans. The first is a €128mn in financing for SMEs and midcap companies. This is the first part of a €400mn loan from the EIB that Santander will match with another €400mn worth or loans.

The second loan consists of €200mn for the financing of infrastructure investment in sectors such as water and transport. Infrastructure is to be the biggest growth area for trade around the world, according to a recent report by HSBC, and will increase by 9% a year until 2030.

The third is a €200mn loan to finance education. These loans bring the EIB’s total loans to Spain for 2013 up to €7.18bn.

Magdalena Álvarez, EIB vice-president comments: “These three loans will especially facilitate the financing of a broad range of sectors that are vital to laying the foundations of economic recovery and giving a much-needed boost to job creation.”