Strategic Recapitalization Program

The Strategic Recapitalization Program of the Portuguese Development Bank strengthens the financial resilience of companies, supporting their capitalization and long-term sustainability, with a focus on innovation, competitiveness, and climate and digital transition.

Duration

Up to 10 years

Financing

50% stake in the share capital

Company Size

SMEs
Large Companies

Eligible Entities

Non-financially viable companies

Strategic Recapitalization Program

The Strategic Recapitalization Program of the Portuguese Development Bank strengthens the financial resilience of companies, supporting their capitalization and long-term sustainability, with a focus on innovation, competitiveness, and climate and digital transition.

Duration

Up to 10 years

Financing

50% stake in the share capital

Company Size

SMEs
Large Companies

Eligible Entities

Non-financially viable companies

Objectives and characteristics

  • The investment operations under this program are intended to achieve the following objectives, not necessarily cumulative:
    • Strengthen the solvency of companies operating in national territory that were affected by the impact of the COVID-19 pandemic
    • Contribute to solving the undercapitalization problem of Portuguese businesses, promoting an increase in companies’ financial autonomy
    • Address the market gap regarding access to financial and equity instruments by companies
    • Foster corporate investment for the relaunch of the economy
    • Support business consolidation in strategic sectors, given that the market is highly fragmented
    • Promote the financial resilience of the Portuguese economy, equipping it with the tools to meet the challenges of European and national priorities of the twin green and digital transition.

  • Viable non-financial companies
  • That operate in national territory

  • Up to 10 years
  • Exceptionally, when duly justified, operations may provide for longer terms

  • Type of Financing
    • Instruments made available under market conditions
    • Equity instruments, including common or preferred shares, without initially acquiring holdings equal to or greater than 50% of the share capital or voting rights of the investee company
  • Quasi-equity instruments, including convertible bonds (or other hybrid instruments such as participating loans), generating a minimum annual return of 2% for maturities up to 5 years (inclusive) or 3% for maturities over 5 years (exclusive)
    • Instruments made available under the Temporary State Aid Framework, or any other applicable framework
    • Equity instruments, including common or preferred shares, without initially acquiring holdings equal to or greater than 50% of the share capital or voting rights of the investee company [combined with the limits arising from the applicable State aid regime]
      • Quasi-equity instruments, including convertible bonds (or other hybrid instruments such as participating loans), generating a minimum annual return according to the Temporary State Aid Framework, as follows:

Objectives and characteristics

The investment operations under this program are intended to achieve the following objectives, not necessarily cumulative:
Strengthen the solvency of companies operating in national territory that were affected by the impact of the COVID-19 pandemic
Contribute to solving the undercapitalization problem of Portuguese businesses, promoting an increase in companies’ financial autonomy
Address the market gap regarding access to financial and equity instruments by companies
Foster corporate investment for the relaunch of the economy
Support business consolidation in strategic sectors, given that the market is highly fragmented
Promote the financial resilience of the Portuguese economy, equipping it with the tools to meet the challenges of European and national priorities of the twin green and digital transition.

Viable non-financial companies
That operate in national territory

Up to 10 years
Exceptionally, when duly justified, operations may provide for longer termsa

Type of Financing
Instruments made available under market conditions
Equity instruments, including common or preferred shares, without initially acquiring holdings equal to or greater than 50% of the share capital or voting rights of the investee company
Quasi-equity instruments, including convertible bonds (or other hybrid instruments such as participating loans), generating a minimum annual return of 2% for maturities up to 5 years (inclusive) or 3% for maturities over 5 years (exclusive)
Instruments made available under the Temporary State Aid Framework, or any other applicable framework
Equity instruments, including common or preferred shares, without initially acquiring holdings equal to or greater than 50% of the share capital or voting rights of the investee company [combined with the limits arising from the applicable State aid regime]Quasi-equity instruments, including convertible bonds (or other hybrid instruments such as participating loans), generating a minimum annual return according to the Temporary State Aid Framework, as follows: