COVID-19 FINANCIAL SUPPORT: Reinosa Forgings & Castings gets a loan from the Spanish Solvency Support Fund for Strategic Companies

The Council of Ministers, at its meeting held on 23 November 2021, approved the agreement authorising the Management Board of the Solvency Support Fund for Strategic Companies (FASEE) to approve the temporary public support operation through the State Industrial Ownership Corporation (Sociedad Estatal de Participaciones Industriales) to strengthen the solvency of non-financial companies affected by the pandemic of COVID-19 which are considered strategic for the national or regional productive fabric, requested by REINOSA FORGINGS CASTINGS, S.L.U.

This support, which amounted to 27 million euros, has been implemented through a participative loan for an amount of €13,770,000 and an ordinary loan for an amount of €13,230,000 euros. The ordinary loan will be repaid in full in December 2027 and the participating loan in December 2028.

Reinosa Forgings & Castings, a key player in the economy

Reinosa Forgings & Castings is the only large company specialising in the manufacture of forged and cast parts in Spain, with more than 100 years of experience in the sector. It is the main economic driver in the district of Campoo and the fourth largest industrial company in Cantabria in terms of employment (528 workers), so its economic and social impact is key.

Use of funds

SEPI’s funds will be used to guarantee the continuity of the company’s activity, restore its viability, cover its liquidity needs and implement an investment plan which aims at promoting the ecological transition, reducing the carbon footprint generated. 65% of the funds will be used for the company’s operational activity and the remaining 35% for debt service, investments and financial expenses.