The financing of Portuguese companies is entering a new phase. The new Grouped Issues with Public Guarantee promoted by the Portuguese Development Bank (BPF) and placed on the market through Flexdeal and Raize represent a significant evolution in SMEs’ access to financing, combining the advantages of the capital market with the security provided by a public guarantee. This initiative is an important step in diversifying the financing sources of Portuguese companies, allowing them to complement traditional bank financing with a competitive, efficient, and scalable solution.
What are Grouped Issues?
Grouped Issues, also known as PME Bondsallow several companies to issue individual bonds that are aggregated into a single operation with investors. This model presents several clear advantages: reduction of costs associated with debt issuance, greater operational efficiency, simplified access to the capital market, diversification of financing sources, and greater visibility among the investor community. By aggregating several issues into a single operation, companies benefit from a scale that they would hardly achieve individually. Over the past few years, Flexdeal and Raize have actively contributed to the development of this market in Portugal, helping companies access the bond market simply and efficiently.
From innovation to evolution
Raize and Flexdeal were pioneers in developing the first Grouped Issues in alternative market in Portugal, helping to create an innovative alternative to traditional financing. The new Grouped Issues with Public Guarantee represent the natural evolution of that model, adding a risk mitigation component that reinforces investor confidence and increases companies’ financing capacity.
According to Alberto Amaral, CEO of Flexdeal and Raize:
“This initiative allows companies and investors to connect, through an innovative model that makes access to the capital market simpler and more efficient for SMEs. By increasing the scale of issuances and investor appeal, we are contributing to the development of alternative financing and the capital market in Portugal.”
Who can benefit from this solution?
Unlike a traditional financing line, these operations are exclusively for companies that already have a guarantee granted by the Banco Portugués de Fomento within the scope of the lines created for this program. With that guarantee, companies can turn to Raize and Flexdeal to structure and place their respective bond issuance with investors. Raize and Flexdeal validate the operation’s compliance within the limits defined by the program and ensure its placement in the market. We are therefore facing an innovative model in which the analysis and approval of the guarantee are carried out in advance by the Banco Portugués de Fomento, while Raize and Flexdeal ensure access to the capital market.
How does the process work?
The process has been designed to be simple and efficient:
- The company obtains approval of the guarantee from the Banco Portugués de Fomento.
- It presents that guarantee to Flexdeal and Raize.
- The operation’s compliance within the limits defined by the program is validated.
- The bond issuance is structured.
- The operation is presented to investors.
- The funds are made available to the company.
Main features of the program
The Grouped Issuances with Public Guarantee program from the Banco Portugués de Fomento is structured around four fundamental pillars that define its scope and conditions:
Public guarantee up to 80%
Each issuance benefits from a guarantee from the Portuguese Development Bank that can cover up to 80% of the debt capital, significantly reducing the risk of the operation. The coverage adjusts automatically as the financing is repaid, accompanying the reduction in exposure throughout the life of the operation.
Issuances up to 2 million euros per company
Each eligible company can issue up to 2 million euros through this program, enabling financing for growth, investment, expansion, or reinforcement projects.
Terms up to 7 years
Operations can have maturities up to seven years, providing a suitable solution for medium and long-term investments.
Two financing lines
The program starts with a total allocation of 100 million euros, distributed across two different lines:
| Line | Allocation | Target | Risk rating |
|---|---|---|---|
| Linha PME | 50 million euros | SMEs | Between 1 and 4 |
| Linha Turismo | 50 million euros | Tourism companies | Between 1 and 6 |
The Linha PME is intended for small and medium-sized enterprises with a risk rating between 1 and 4, while the Linha Turismo is specifically aimed at companies in the tourism sector and extends eligibility up to rating 6, recognizing the particular sensitivity of this sector to economic cycles and the greater variability in its risk profile.
Benefits for companies
For SMEs, this instrument represents an opportunity to diversify funding sources, complement traditional bank financing, obtain medium and long-term financing, access the capital market simply and efficiently, and finance investment and growth projects. Furthermore, the fact that the guarantee is already assigned allows the financing access process to be significantly accelerated.
In the current European context, where SMEs face increasing pressure from the normalization of monetary policies and the tightening of credit conditions, instruments like these acquire strategic relevance. The ability to access non-bank financing, with extended terms and public backing, can make the difference between stagnation and sustainable growth for thousands of Portuguese companies. The pooled issuance model, moreover, democratizes access to the capital market: companies that due to their size could never afford the costs of an individual bond issuance can now do so by sharing the infrastructure and expenses with other companies in a similar situation.
Benefits for Investors
For investors, these operations allow direct investment in the Portuguese real economy, participation in financing domestic companies, benefiting from a public guarantee of up to 80% of debt capital, diversifying investment portfolios, and accessing a new asset class in the national market. For the first time in Portugal, individual investors will be able to participate in grouped bond issuances backed by a public guarantee, allowing access to an instrument traditionally reserved for institutional investors.
From the perspective of a European investor, this program opens an interesting window into a market that has historically been underdeveloped in terms of retail investment in corporate debt. While countries like Germany or France have more mature corporate bond markets, Portugal has traditionally relied on banking as its main channel for corporate financing. The emergence of platforms like Raize and Flexdeal, combined with the public backing of the Banco Portugués de Fomento, creates an ecosystem that can attract not only local investors but also international investors interested in geographically diversifying their fixed-income portfolios.
The 80% guarantee is a notable differentiator compared to other crowdlending and debt crowdfunding offers available in Europe. Although platforms like Mintos, EstateGuru, or Debitum offer various investment opportunities in business loans, they rarely have public backing of this caliber. This does not mean the risk is nonexistent—the remaining 20% is still exposed to the solvency of the issuing company—but it does shift the risk-return profile favorably for conservative investors seeking exposure to the real economy without taking on excessive volatility.
The role of Raize and Flexdeal
Since 2014, Raize has been bringing investors and companies together through innovative financing solutions. Along this journey, they have already mobilized over €110 million in loans and €20 million in unsecured bonds without state guarantee to support the growth of Portuguese companies. Flexdeal, for its part, has taken on a leading role in developing capital market solutions for SMEs. Together, Raize and Flexdeal continue to lead innovation in business financing, contributing to the creation of a more efficient, more accessible market that is closer to the needs of Portuguese companies.
A milestone for the Portuguese capital market
For the first time in Portugal, companies that already have a guarantee granted by the Banco Portugués de Fomento can resort to the bond market for financing, simultaneously benefiting from the efficiency of the capital market and the protection provided by a public guarantee. More than a new financing solution, this is a decisive step in the evolution of financing for Portuguese SMEs. Raize believes the future lies in the complementarity between banking, capital markets, technology, and private investors. The new Grouped Bond Issuances with Public Guarantee are further proof that this future has already begun.
This program illustrates a broader trend across Europe: the pursuit of hybrid models that combine private capital with public backing to unlock financing for underserved segments of the business fabric. From guarantee funds in Spain to social bond programs in France, European authorities are increasingly willing to take on risk-catalyst roles, using their balance sheets to reduce the risk premium that private investors demand from SMEs. The Portuguese case, however, stands out for its integration with alternative investment platforms, which amplifies the multiplier effect of public capital by channeling it to a broader base of retail investors.
The lingering question is whether this model could be replicated in other European markets. The structure of public guarantee + digital platform + pooled issuance is technically transferable, although it depends on the existence of national development institutions with the capacity to grant similar guarantees and on local platforms with the operational experience to structure these transactions. In any case, what Portugal has demonstrated is that financial innovation does not necessarily require large capital markets: regulatory will, public-private collaboration, and appropriate technology are enough to create new financing channels that benefit companies and investors alike.
Source: https://blog.raize.pt/emissoes-grupadas-garantia-publica-pme/