- The ICO, which has channeled more than 8.3 billion euros through the MARF, highlights the role of Axis and the “España Crece” plan in offering alternative financing to companies
- The European Investment Bank, the CNMV, and Citi emphasize the importance of strengthening capital markets to boost IPOs
- The rest of today’s panels address the BME Scaleup market and investment opportunities in small and mid-cap listed companies and in the fixed income area
The importance of access to flexible financing through capital markets and of public-private collaboration to drive economic growth has been the common thread of the second day of the 22nd Medcap Forum. In parallel with meetings between companies and investors, four public panels were held on various current issues.
Manuel Illueca, president of the Official Credit Institute, opened the day, introduced by Juan Flames, CEO of BME. In his special address, Illueca highlighted the role of the ICO in meeting the challenge of ensuring that companies have alternative financing for their growth. He explained that the ICO has channeled more than 8.3 billion euros as an institutional investor through the MARF. He also recalled that its specific line of guarantees for commercial paper programs traded on the MARF during COVID-19, which helped mobilize 1.2 billion euros, was an example of public-private collaboration.
Illueca also underscored the role of Axis, the ICO’s venture capital subsidiary, and the Spain Grows program, which has a base of 13.3 billion euros and will focus on key sectors to improve the productivity of the Spanish economy. Finally, he showed the ICO’s commitment to helping resolve the problem of access to housing by promoting financing for the development sector with the aim of increasing the stock of affordable rental housing.
The panel “Capital to grow: IPOs and public-private collaboration,” moderated by Ignacio Escrivá de Romaní, partner at Cuatrecasas, featured the participation of Paz Guzmán, senior economic advisor at the European Investment Bank Group in Spain; Jorge Ramos, head of Investment Banking for Spain and Portugal at Citi; and Ángel Benito, director general of markets at the CNMV.
Ángel Benito stated that there is an urgent need for more and more listed companies in the capital markets so that medium and small companies have an alternative source of financing. He mentioned the Listing Act, which eases the requirements for IPOs without compromising investor protection and includes new measures such as a simplified prospectus for transferring from growth markets like BME Growth to the main market, and the reduction of the minimum free float required from 25% to 10%. The CNMV’s director general of markets highlighted the work of the task forces created following the OECD’s recommendations to strengthen capital markets in Spain, in which BME participates. Finally, he emphasized the new IPO modality, BME Easy Access, which is an innovative mechanism at the global level because it allows companies 18 months to begin trading from the moment the prospectus is registered.
Paz Guzmán highlighted the role of the EIB Group as a key instrument of the Savings and Investments Union, channeling savings toward pan-European productive investments. She emphasized that the EIB Group, which invests €100 billion annually and has a balance sheet of €600 billion, seeks to provide the EU with a broad range of instruments to channel savings into productive investment: corporate financing, guarantees, securitizations, and equity instruments to support European companies throughout their entire growth cycle, mobilizing public and private investment for the EU’s priorities. In particular, she underscored the value of the European Tech Champions Initiative, managed by the European Investment Fund, which has already invested in 15 megafunds exceeding €1 billion, helping European scaleups secure the investment needed to become global tech champions without having to leave the European Union. Its second phase, ETCI 2.0, will seek to expand this ambition by attracting institutional investors and supporting European tech companies so they can obtain the capital they need to grow, compete globally, and thrive in Europe.
For his part, Jorge Ramos explained that private equity is not a substitute for going public, but rather complementary, because for private equity funds it is essential to have a capital market as a possible exit for their investments, in the pursuit of maximizing their returns. He also said that Citi is working on several transactions with the idea that in the second half of the year there will be new IPOs in Spain, in line with the positive outlook across Europe. Regarding BME Easy Access, he said they view it positively and appreciate that companies have more alternatives.
Three other panels were held today: one dedicated to BME Scaleup, another focused on investment opportunities in small caps, and another on challenges and opportunities in the fixed income markets.
During the panel dedicated to BME Scaleup as a gateway to the stock markets, which featured the CEOs of Bytetravel, GrandVoyage, and Grupo Eolo, the speakers highlighted the agility, accessibility, and simplicity of the process to begin trading on this BME growth market, and emphasized that it provides companies with credibility, visibility, and the necessary support to grow and compete in the capital markets. They also noted that going public, compared to other financing avenues, stands out for the support provided, manageable requirements, and orderly, convenient management.
In the following panel, moderated by GVC Gaesco, there were representatives from the listed companies Nicolás Correa, Labiana Health, and Vytrys Biotech, as well as from the fund managers Columbus Investment Partners and Mutuactivos. The company leaders spoke about their growth, shared their plans, and explained what being listed on the capital markets brings them. For their part, the managers stated that there is a great opportunity to invest in small companies due to the environment of economic growth, their good results, and their attractive valuation compared to large listed companies.
Finally, during the Fixed Income panel, which featured representatives from Kutxabank Investment, Buy&Hold, Ethifinance and Santalucía AM, the speakers highlighted the current complex geopolitical landscape affecting fixed income markets, and focused on three key areas that need to be addressed to turn the situation around in these markets: inflation, energy and monetary policy. Furthermore, recent volatility caused by sudden shifts in macroeconomic policies and fluctuations in interest rates has led fixed-income market participants to act with greater caution when making decisions.
Cuatrecasas is the main sponsor of the Medcap Forum, which also has the support of Renta 4, GVC Gaesco, Kutxabank, PwC, LKS Next, EthiFinance, Alantra, JB Capital Markets, World Television (Wtv.), and Morningstar as sponsors. Atribus, the Spanish Institute of Analysts, and CFA Society Spain are also collaborating in this edition.
You can find photos of today’s session at this link.
Tomorrow will be the third and final day of the 22nd Medcap Forum, with panels on the aerospace and defense sector and on M&A and the stock markets. The president of CEPYME, Ángela de Miguel, will deliver the closing address at 1:30 p.m. You can find all the information about the event on its website.
Journalist registration for the Medcap Forum must be completed at this link.