PORTUGAL Trends and Developments Contributed by: André Figueiredo and Hugo Nunes e Sá, PLMJ
Perhaps less visible but equally important is the growth of regtech. With MiCA, DORA, the AI Act and ESG disclosure frameworks all imposing heavy compli- ance requirements, banks and fintechs alike are turn- ing to digital solutions to automate KYC processes, enhance transaction monitoring and manage regula- tory reporting. Several Portuguese regtech companies have emerged with export potential, leveraging the country’s strong IT talent pool and lower operating costs compared to northern Europe. This is not to say that fintech has displaced traditional banking. Rather, the lines are blurring. Large banks are partnering with fintechs, investing in digital wal- lets and experimenting with the tokenisation of assets. At the same time, fintechs are seeking licences and moving closer to regulated activities. The sector is increasingly collaborative, with technology and com- pliance converging. The resurgence of project finance After more than a decade of relative quiet in large- scale infrastructure deals, Portugal is once again wit- nessing a revival of project finance. This resurgence is being driven by a combination of EU funding flows, strong political backing for strategic infrastructure and renewed investor appetite for long-term capital deployment in sectors such as transport, energy and technology. The flagship of this revival is the Lisbon–Porto high- speed rail line ( train à grande vitesse TGV). In 2024, the government signed the concession for the first phase (Porto–Oiã), with a 30-year term. The European Investment Bank (EIB) committed EUR875 million as the first tranche of a EUR3 billion financing package. Infrastructure more broadly is also benefitting. A EUR4 billion programme for port expansion, including Sines, is 75% privately funded and features conces- sion terms extended for up to 75 years. Even digital infrastructure is being financed in this way, with the EUR8.5 billion Start Campus data centre hub in Sines attracting international investors. The energy transition is another obvious driver. Por- tugal has ambitious targets: 80% of electricity from renewables by 2030, large-scale electrification of
transport and growing hydrogen production. Achiev- ing this requires large investment, much of which is structured through project finance. Solar power has expanded rapidly, with installed capacity reaching 3.8 GW in 2023 and a target of 9 GW by 2030. Wind energy, both onshore and offshore, is also accelerating. Repowering projects are replac- ing ageing turbines with more efficient models, often paired with battery storage. Hybrid projects that com- bine solar, wind and storage are becoming common, offering more stable output and bankable revenue streams. The EIB has played a catalytic role, financ- ing Iberdrola’s solar plants and Galp’s green hydrogen and biofuels projects in Sines. Offshore wind represents the next frontier. In January 2025, the government designated four maritime zones covering more than 2,000 km² for offshore develop- ment, with auctions for 2 GW of capacity expected by 2030. Longer term, capacity could reach 10 GW. These projects, typically requiring billions in upfront capital, are tailor-made for project finance consortia involving banks, export credit agencies, utilities and institutional investors. The Barroso lithium mine – Europe’s largest spo- dumene deposit – is slated to start production in 2027, supplying lithium for around 500,000 electric vehicle (EV) batteries annually. Project finance structures are being explored alongside offtake agreements with battery manufacturers. What is notable is not only the scale but also the diver- sity of sectors now using project finance in Portugal. The model has re-emerged as a preferred way to de- risk long-term investments while mobilising both pub- lic and private capital. Conclusion Portugal’s banking and finance sector in 2025 is characterised by strategic consolidation, regulatory sophistication, technological adaptation and a renais- sance in project finance. The BPCE–Novo Banco acquisition anchors a wider M&A trend that extends to smaller licensed entities, while the regulatory landscape – shaped by MiCA,
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