2017: EIB Group activity in Spain

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1 years improve lives. together. 2017: EIB Group activity in Spain Extensive EIB Group financing activity in Spain in 2017: EUR bn, almost 1% of GDP Spain was the country with the highest financing volume for supporting SME investments and infrastructure development Major increase in EIB Group innovation investment in Spain (67% rise) Spain was in second place among EU countries for the amount of Investment Plan for Europe financing signed in 2017 The EIB as a key player for mobilising investment in Spain In 2017, the EIB Group signed 83 operations in Spain for a total financing volume of EUR bn, almost 1% of GDP. Support for SMEs was once again the EIB Group's main priority in Spain, accounting for EUR 6.2bn in financing. Spain received more support for financing small businesses than any other EU country. It was also in first place for EIB Group financing of large-scale infrastructure, amounting to EUR 2.295bn in total also saw a significant increase in financing centred on promoting innovation in the Spanish economy, which reached almost EUR 1.5bn. A large share of this support for innovation was provided within the framework the Investment Plan for Europe, with Spain achieving second place among EU countries for the volume of financing signed by the EIB Group under the Juncker Plan in Another figure that increased in 2017 was the EU bank's financing for the development of projects helping to combat climate change and support sustainable production in Spain, standing at EUR 870m. Small and medium-sized enterprises Infrastructure Innovation and skills Environment European Investment Bank Group Total lending in Spain in 2017 (in EUR m) EUR million Source: EIB Supporting small and medium-sized enterprises (SMEs) is one of the EIB s main goals in Spain. As in previous years, most (57%) of our total financing for 2017 was used to facilitate SME investments: EUR 6.2bn to support the projects of more than Spanish companies employing people. New infrastructure: the EIB Group directed EUR 2.295bn more than 20% of its activity in Spain in 2017 to infrastructure financing, including the modernisation of energy infrastructure, the development of high-speed rail and the promotion of social housing. The EIB granted EUR 165m in financing for two major projects providing affordable rented apartments in Barcelona and Pamplona Innovation: significant increase in EIB Group financing for securing the future and ensuring the competitiveness of Spanish businesses. To achieve this objective, the EIB provided EUR 1.446bn, representing a 67% rise compared to its activity in this sector in the previous year. The EIB Group directed a total of 13% of its financing in Spain to promoting businesses RDI activities

2 Climate action is another of the EIB Group's priority objectives. With EUR 870m directed to this activity in Spain, the EU bank has financed cleaner transport and supported the implementation of new, less polluting and more environmentally friendly production processes was a very positive year for the Juncker Plan. Spain was in second place among EU countries for the volume of financing signed with the support of the Investment Plan for Europe, which totalled EUR 2.59bn. This means that the EIB Group's Investment Plan for Europe activity in 2017 accounted for 22% of the Group's financing in Spain. Since this initiative was launched in 2015, 70 projects have been approved under the plan in Spain for a total financing amount of EUR 5.6bn, which is expected to mobilise around EUR 32bn of investment. EIB Group activity in Spain in 2017 EUR bn in European Investment Bank (EIB) financing to promote job creation, SME innovation, infrastructure modernisation, social housing and sustainable production. EUR 757m from the European Investment Fund (EIF), the specialist subsidiary of the EIB Group providing risk financing solutions to financial intermediaries to support SMEs and foster innovation. I. INVESTMENT PLAN FOR EUROPE 82% of mobilised investment objective achieved 2017 was a year of consolidation for the Investment Plan for Europe, known as the Juncker Plan. From the launch of this initiative in 2015 until December 2017, 717 projects were approved under the plan across the EU for a total financing amount of EUR 51.2bn, which is expected to mobilise around EUR 256bn in new investment. This figure indicates that the EIB Group has already succeeded in mobilising 82% of the objective of EUR 315bn in new investment financing set for July As a result of these good results, on 12 December 2017 the European Parliament approved the expansion of this initiative with the aim of boosting and increasing its strength and duration. This means that its implementation period has been extended from mid-2018 to late-2020, with the mobilised investment target rising from EUR 315bn to EUR 500bn. Spain is one of the biggest beneficiaries of the Investment Plan for Europe Spain has been among the biggest beneficiaries of Investment Plan for Europe financing since its launch. Spain was second among EU countries for the volume of EIB Group financing signed in 2017: EUR 2.59bn. Since the launch of the Investment Plan for Europe in 2015, the EIB Group has approved the financing of 70 projects in Spain for a total volume of EUR 5.6bn, making it possible to mobilise almost EUR 32bn in investment. Job creation is one of the Investment Plan for Europe's objectives, and to this end many of the projects financed focus on ensuring the competitiveness of Spanish businesses by facilitating their investments in innovation and digitisation. Moreover, EIB Group Juncker Plan financing is reaching Spanish SMEs via agreements with various financial intermediaries. The EIF (a subsidiary of the EIB Group) is also making a contribution to this effort, having approved financing for 18 transactions in Spain between 2015 and 2017 for a total of EUR 814m with the Juncker Plan guarantee. The EIF financing is aimed at supporting SMEs. Climate action was another of the Investment Plan for Europe's priorities in Spain for 2017, supporting energy generation using renewable sources, securing more environmentally friendly modes of transport, facilitating investment in sustainable production processes, and helping to renovate homes to improve their energy efficiency.

3 Social housing: more energy-efficient homes for rented social housing use (EIB: EUR 165m) new homes in Barcelona to cover demand for rented social housing from middle or low-income applicants and people over the age of 65 with limited means. 524 homes in several metropolitan areas in Navarre to be used as rented social housing for young people and those on low incomes. Promoting low-price rented social housing in European cities is one of the EU bank's objectives, and it had already provided financing for this kind of programme elsewhere in Spain in the past. Under the Investment Plan for Europe, the new social housing projects approved in 2017 will also make it possible to build more energyefficient homes. In the case of Navarre, the homes will be Nearly Zero Energy Buildings (NZEBs), capable of using up to 75% less energy than conventional homes. Batz is one of the Spanish businesses that benefited from EIB Group financing under the Investment Plan for Europe in Part of the Mondragón Corporation, the company was granted a EUR 25m loan for its innovation and growth strategy centred on the development of technologies for designing new products, with the aim of manufacturing lighter and more aerodynamically efficient vehicles to cut CO 2 emissions. The project will also have a positive impact on job creation, enabling the company to reach employees in 2020.

4 II. FINANCING THE FUTURE: SUPPORTING INNOVATION AND CLIMATE ACTION Research, development and innovation (RDI) support is a vital component of EIB activity in Spain and targets both large companies and SMEs to secure their competitiveness and create jobs. The EIB Group dedicated EUR 1.446bn to this objective in 2017, a figure that represents a 67% increase compared to the previous year. Last year also saw a rise in the EIB Group's financing of projects aiming to promote more sustainable production processes and climate action in Spain, reaching EUR 870m. Fighting cancer: support for research in Madrid and Andalusia (EUR 45m under the Investment Plan for Europe) In 2017, Laboratorios Farmacéuticos Rovi received a EUR 45m Investment Plan for Europe loan from the EIB to finance its RDI programme focusing on technologies for the administration and extended release of medication, including pre-clinical development and clinical trials that could help develop future treatments to fight cancer and nervous system diseases. The investments will be made over the next three years in RDI centres spread across the regions of Madrid and Andalusia. Industrial innovation: vehicle components produced by Maier in the Basque Country with the latest technology (EUR 25m under the Investment Plan for Europe) Implementation of new, more sustainable production processes at its Guernica factory. Creation of 250 jobs in research and development. Maier's new innovation strategy and expansion plan financed by the EIB will enable this Basque company European leader in the design and production of vehicle trim components for the automotive sector to develop new products and technical parts via production processes applying the latest technology. Its new components will help reduce the weight and fuel consumption of the vehicles. Maier will also be able to expand and go global, reaching new markets in Eastern Europe, China, India and Mexico. The loan to Maier was the EIB Group's first under the Loans for Mid-caps in Spain and Portugal programme, which was specifically created to finance mid-cap companies (with up to employees) with the support of the Investment Plan for Europe.

5 STAT-Dx develops new advanced diagnostic systems for the fast early detection of infectious diseases such as meningitis (EUR 20m under the InnovFin programme) In 2017, EIB financing reached Spanish start-up STAT-Dx to support the development of new molecular diagnostics devices capable of identifying a wide range of infectious pathogens, such as meningitis, respiratory or gastro-intestinal infections in about one hour. STAT-Dx s technology enables clinicians to carry out tests simultaneously, making faster diagnostics possible and improving survival rates in intensive care units and emergency rooms. EIB support will enable this company to continue researching and developing diagnostic systems able to provide instant results. Innovation and job creation in Cádiz: EUR 70m to expand Acerinox's factory Acerinox will be able to modernise its factory in Palmones, Cádiz, thanks to EUR 70m in financing provided by the EIB. The plant will feature the latest technology for manufacturing high value added stainless steel products, increasing its production while at the same time reducing the consumption of supplies in its production chain. The agreement will serve to boost the company's competitiveness and strengthen its presence outside the country by increasing its exports. In this way, the project will help to promote economic growth in an EU convergence region, contributing to job creation by hiring 250 people during the implementation phase and 55 permanently.

6 Digitisation: the future has arrived! 2016 was the launch year for major projects driving the digitisation of the Spanish economy, and 2017 saw the consolidation of this trend. The Investment Plan for Europe is facilitating the digitisation of sectors from banking and commerce to telecoms. Ready for 5G: improvement in the capacity and quality of Cellnex's mobile phone networks in Spain (EUR 100m under the Investment Plan for Europe) Under the Juncker Plan guarantee, the EIB provided EUR 100m to Cellnex to build new telecoms towers and roll out fibre optics and radio links in Spain. These investments are needed to improve mobile phone coverage, optimising pre-existing 4G networks particularly in rural areas and accelerating the development of 5G technology. In concrete terms, Cellnex will be able to roll out new telecoms locations in rural and urban settings. This new infrastructure will enable mobile operators to improve their coverage and network capacity in Spain. Talgo's new innovation strategy (EIB: EUR 30m under the Investment Plan for Europe) In 2017, the EIB provided a EUR 30m Investment Plan for Europe loan to Talgo to facilitate its investments into the technological development of high-speed trains to improve their safety, comfort and energy efficiency. The project financed by the EU bank will also be centred on commuter trains: a major portion of the investment will focus on developing Talgo's new prototype for the electric trains for short and mediumlength journeys segment. The implementation of this RDI programme will enable Talgo to offer new products, speed up its expansion outside Spain and create jobs. Fast and environmentally friendly transport for Las Palmas de Gran Canaria (EUR 50m under the Investment Plan for Europe) A new mode of transport, popularly known as the Metro Guagua, is set to run in Las Palmas de Gran Canaria. Environmentally friendly electric or hybrid buses will operate on a 12-km exclusive lane along the coast. The Metro Guagua will improve public transport in the capital on a route used by 10 million passengers a year. It will have 17 stops and a traffic control centre. This new mode of transport will help to boost tourism in the urban area as an alternative to the resorts in the south of the island. The project also includes the creation of a new bicycle lane and the widening of the pavements alongside the new bus lanes.

7 New waste collection and handling technologies from Urbaser (EUR 80m under the InnovFin programme) Research and sustainability often go hand in hand. Having more environmentally friendly production processes requires continued innovation. Urbaser received EIB support in 2017 to develop new technologies enabling it to improve its handling of waste, thereby reducing the volume sent to landfill. The company will be able to develop new research programmes, for example aiming to extract fuel from plastic waste or improve its waste classification system. However, the EIB loan will also enable Urbaser to replace its fleet of urban lorries with quieter and less polluting hybrid or electric models. III. INVESTMENT TO ENSURE SUSTAINABLE ECONOMIC GROWTH: NEW INFRASTRUCTURE AND CONVERGENCE SUPPORT 2017 also once again demonstrated the EIB Group's important role as a driver of the Spanish economy, providing financing for largescale infrastructure as well as projects improving people's quality of life and facilitating convergence between the country's regions. Last year the EIB Group provided EUR 2.295bn to support the development of strategic transport and energy infrastructure, one of its priorities in Spain. Spain received more EU bank financing for this objective than any other country in AVE continues to grow: more than EUR 1bn to finance high-speed rail on the Y Vasca Support for high-speed rail in the Basque Country is one of the EIB's largest investments in Spain, and has showcased the close partnership between the EU bank and the Ministry of Public Works and Transport in extending the AVE. The EUR 1.03bn loan to ADIF will make it possible to build 160 km of new high-speed line between Vitoria, Bilbao and San Sebastián, as well as to remodel, adapt and provide new high-speed access to their stations. The EIB has already contributed to financing the Y Vasca project in the past with another EUR 1.4bn provided via two loans in 2012 and Trains will run at 250 km/h on these new tracks, cutting the travel time between Madrid and San Sebastián or Bilbao from the current length of around five hours to three and a half hours. Tunnels and viaducts make up 79 km and 25 km of this infrastructure respectively. An estimated person-years of temporary employment are expected to be generated during the construction phase and, once operational, the new high-speed lines will need 400 people to be employed for operations and maintenance.

8 The EIB and high-speed rail in Spain EIB financing has been key to implementing highspeed rail in Spain. Since it provided an initial EUR 300m in 1991, the EU bank has granted financing of EUR 11.6bn enabling the AVE to reach Barcelona, Valladolid, Burgos, Malaga, Córdoba, Alicante and Valencia. The connection between the stations of Atocha and Chamartín, the link between the three Basque capitals and various sections of the Mediterranean Corridor are also currently being implemented. Faster and more comfortable journeys together with new business opportunities have been made possible, with an accompanying positive impact on economic growth and job creation. Rural infrastructure to support tourism in Castilla y León: EUR 30m The EIB also contributed to the development of rural tourism infrastructure in In Castilla y León, the EU bank provided EUR 30m in financing for public transport development to improve the service and attract more visitors, and facilitated the development of sustainable rural infrastructure. This project will include the construction of mountain refuges, funiculars and new hiking trails. It will also facilitate the creation of a new network of tourist accommodation via the renovation of exceptional buildings many of which had been abandoned to be converted into hotels and hostels. Electricity infrastructure modernisation and support for renewable energy: EUR 950m In 2017, the EIB financed large-scale projects aiming to improve Spain's electricity production and distribution infrastructure. Via agreements with Endesa and Gas Natural Fenosa, the EU bank provided EUR 950m to finance the modernisation of electricity distribution networks in Spain and promote the use of renewable energies. The projects financed by the EIB will include the installation of more than 2.5 million new remotely managed digital meters that will provide customers with real-time information on their consumption. Through the agreement with Gas Natural Fenosa, the EIB financing will also facilitate the construction of 11 new wind farms on the islands of Gran Canaria and Fuerteventura with a total installed capacity of 49.6 MW, helping to increase the share of electricity produced using renewable sources in the Canary Islands, thereby contributing to the security and stability of supply.

9 Convergence support: EUR 70m to implement more sustainable production processes at CEPSA's Andalusia refineries Aromatics are the raw materials used to manufacture products central to our daily lives, such as detergents, synthetic fibres and even pharmaceuticals. CEPSA is a Spanish multinational and leader in this sector. The loan signed with the EIB will enable its San Roque and Palos de la Frontera factories to develop new, more efficient production processes that use less energy. Increased logistics capacity in the Port of Barcelona (EUR 75m under the Investment Plan for Europe) Centro Intermodal de Logística del Puerto de Barcelona (CILSA) received a EUR 75m loan in 2017 to expand its logistics infrastructure to reach a capacity of almost 1 million m 2, enabling it to improve its economic activity at a strategic location on the routes of the so-called Mediterranean Corridor. With the development of new infrastructure, the Port of Barcelona will be able to cut transport connection management costs and be more competitive. The project will also promote a reduction in the use of road transport and the associated pollutant emissions. The provision of new logistics infrastructure will make it possible to create around new direct jobs and around indirect jobs in the logistics and transport sector. IV. EIB FINANCING FOR SMALL-SCALE PROJECTS: SMES, MID-CAPS AND MICROCREDITS SMEs are a major priority for the EIB Group in Spain. In 2017, Spain was ahead once again in terms of EIB Group financing for SMEs. EUR 6.2bn was provided to ensure that Spanish small and mediumsized enterprises are able to access credit on favourable terms, offering various instruments from long-term loans to subordinated guarantees. This financing reached SMEs via the EIB Group's partner intermediary institutions in Spain, such as ICO, Banco Santander, Bankia, CaixaBank, Banco Sabadell, Bankinter, BBVA, Unicaja, Ibercaja MicroBank and Bankoa. The EIB Group provided EUR 6.2bn in 2017 to support the projects of Spanish businesses employing more than people. The financing was focused on areas such as the digitisation of SMEs, access to alternative financing (leasing, supply chain), and support for agricultural sector companies, with the aim of facilitating fleet renewal and contributing to climate action projects. The average EIB Group loan received by Spanish SMEs was for around EUR

10 Spain leads EIF financing: EUR 757m to support SMEs The European Investment Fund (EIF) is the EIB Group's dedicated provider of risk financing solutions to financial intermediaries to support SMEs and foster innovation. The EIF provided financing of EUR 9.34bn in 2017, enabling it to support more than companies employing more than 1.5 million people in the EU. In 2017, Spain was third among EU countries in terms of the amount of support it received from this EIB Group subsidiary. The EIF signed 17 transactions in Spain in 2017 for a financing total of EUR 757m, with the aim of mobilising EUR 5.7bn. EIF activity in Spain in 2017 benefited Spanish SMEs employing more than people. More information is available at SME Initiative: the biggest financial instrument for SMEs in the European Union Created by the European Commission and the EIB Group, the SME Initiative was launched in 2015, with Spain as the first EU country to implement this guarantee line thanks to the cooperation of the Ministry of Finance, the Autonomous Communities and several Spanish financial institutions. The SME Initiative is an EIB Groupmanaged instrument channelled via entities selected using a tender process. To date, nine entities have joined: Bankia, Banco Santander, Caixabank, Banco Popular, Banco Sabadell, Bankinter, Grupo Caja Rural, Liberbank and Ibercaja. Under this partnership, the SME Initiative has already offered guaranteed financing to small and medium-sized enterprises totalling EUR 3.8bn, making it possible to finance SMEs providing jobs to people. One of the most relevant outcomes produced by this instrument is that it is reaching smaller SMEs across all economic sectors, which is very important for Spanish entrepreneurs. 77% of the businesses having benefited from the SME Initiative so far in Spain have fewer than ten employees, and 96% have fewer than 50. The average loan amount granted is EUR Entrepreneurship is also receiving a boost, as demonstrated by the fact that many (38%) of these SMEs are start-ups that are less than three years old. This data shows the impact of this initiative on the Spanish economy, where the jobs and added value created depend to a large extent on small businesses.

11 Support for farmers and transport-focused SMEs In addition to this general financing for SMEs, the EIB also provided credit access to SMEs in specific sectors: EUR 525m for the agri-food sector. Using this financing, different banking institutions provide self-employed individuals, cooperatives and small farming businesses with loans on favourable financial terms to enable them to carry out their investments. Businesses including farms, as well as livestock, forestry and fisheries SMEs have accessed this financing. EUR 425m to finance the renewal of road vehicle and tractor fleets, complementing the Spanish Government's MOVEA and MOVELE plans. In 2017 and for the third consecutive year, the EIB provided this credit line to a number of banks with a dual objective: providing cash to companies so that the oldest professional road transport and agricultural vehicles (cars, trucks, buses, vans and tractors) can be replaced with less polluting and more environmentally friendly alternatives. Microfinance: EUR 30m for young entrepreneurs The EU bank's favourable financing terms are also reaching small entrepreneurs, helping projects that are small in scale but big in impact for supporting new ideas. Via an agreement with MicroBank, the EIB is financing microcredits for small businesses with the aim of creating jobs, particularly for young people. The average loan from this EIB-supported microfinance line is for EUR , with loans granted on the basis of the viability of the project presented and the level of trust in the applicants, without collateral requirements. Many of the beneficiaries are start-ups. Small businesses innovate too: EUR 150m to promote the innovation and digitisation of SMEs Via an agreement with BBVA, in 2017 the EIB signed the first operation in Spain dedicated to promoting the innovation and digitisation of smaller businesses. Business people accessing this financing will be able to modernise and optimise their processes and equipment to improve, for example, data management, web portal development and electronic billing. The goal is to ensure that SMEs have funds to invest in innovation and digitisation, thereby guaranteeing their competitiveness.

12 Overall EIB Group achievements in 2017* An overall financing volume of EUR 78.16bn including EUR 69.8bn from the EIB and EUR 9.34bn from the EIF. The EIB Group approved more than 901 operations in 2017 mobilising EUR 250bn. EUR 13.8bn of EIB Group support for innovation and skills including education and digital infrastructure. EUR 18bn supporting infrastructure in transport and energy as well as urban infrastructure. Climate action accounted for 27% of total EIB financing to support the transition to a low-carbon, environmentally friendly and climate-resilient economy. * EIB Group total financing figure excluding overlap of some financing volumes for joint EIB-EIF operations. For further information on the EIB in Spain: Press contacts: Mercedes Landete U m.landete@eib.org Press Secretariat U press@eib.org General contacts: European Investment Bank Calle Ortega y Gasset, 29 Madrid U info@eib.org Investment Plan for Europe projects approved by the EIB Group up until the end of 2017 amounted to EUR 51.26bn, which is expected to mobilise EUR 257bn of investment in the real economy, more than 80% of its overall objective. The activity of the EIB Group in 2017 helped to support SMEs throughout the EU that are sustaining 3.9 million jobs. EUR 29.6bn of EIB support for SMEs, to which the EIB Group directed a third of its total financing in EUR 16.7bn for environmental projects supporting sustainability, resource efficiency and the environment. 30% of total EIB financing was dedicated to economic and social cohesion to help each EU region achieve its full potential. European Investment Bank, 01/2018 EN Nasuvinsa, Navarra de Suelo y Vivienda, S.A. - Batz Group - Laboratorios Farmaceuticos Rovi - MAIER Group - STAT dx S.L Company - Acerinox S.A. - Cellnex Telecom - Talgo Group - Guaguas Municipales de Las Palmas de Gran Canaria - Urbaser S.A. - ADIF - Sociedad de Infraestructuras y Medio Ambiente de Castilla y León SOMACYL - Gas Natural Fenosa SGD S.A. - CEPSA - Zal Port Barcelona - Santander Group - MicroBank