For the third time since 2017, the EIB Group — the European Investment Bank (EIB) and the European Investment Fund (EIF) — and BNP Paribas are launching a synthetic securitisation to support French companies.
The transaction consists of an EIB Group guarantee on an existing portfolio of loans granted by BNP Paribas to French small and medium-sized enterprises (SMEs) and mid-caps.
The guarantee enables BNP Paribas to free up part of the regulatory capital allocated to this portfolio, and to deploy €475 million in new loans to SMEs and mid-caps in France over the next two years.
These new financing operations may take the form of bank loans or leasing transactions. The on-lending arrangement granted by the EIB will allow beneficiaries to enjoy enhanced preferential financial conditions.
Marguerite Bérard, Head of French Retail Banking of BNP Paribas and member of the Executive Committee, remarked, "With the success of previous transactions with the EIB Group, we are thrilled to now be able to commit to making €475 million in new financing available to SMEs and mid-caps at reduced rates over the next two years. This financing comes in addition to our many support schemes for corporate clients designed accommodate, as closely as possible, the local economic reality. With a view to helping our customers accelerate their energy transition, enhancing the financing conditions for sustainable assets is one part of a long-standing BNP Paribas approach, which includes the use of impact financing.”
EIB Vice-President Ambroise Fayolle explained, “With this, their third joint securitisation since 2017, the EIB and BNP Paribas are continuing their efforts to facilitate access to finance for SMEs and mid-caps. Financing these entities is an EIB priority — one to be achieved by working with our banking partners to develop attractive credit solutions that help sustain business operations and support investment.”
EIF Chief Executive Marjut Falkstedt added, “The EIF is pleased to be working with BNP Paribas to use our securitisation tools to provide additional resources to SMEs and mid-caps. The BNP Paribas group is a long-standing and trusted partner for the EIF, enabling it to provide effective support to French companies in their search for financing for their investments.”
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 185,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.
The EIB was created by the Treaty of Rome and founded in 1958. It is the long-term financing institution of the European Union, and its shareholders are the 27 Member States. The EIB’s remit is to finance projects that contribute towards the integration, balanced development and economic and social cohesion of the European Union. It borrows large volumes of funds on the capital markets and lends them on very favourable terms to support projects that help Europe achieve its major objectives. As the EU climate bank, it aims to encourage the emergence and deployment of new technologies to meet ongoing challenges such as the energy transition to a new low-carbon growth model. In 2022, EIB investments in France for renewable energy, clean mobility and energy efficiency came to €5.9 billion, 70% of the total financing of €8.4 billion for the country.
To learn more about the EIB, visit www.eib.org
The EIF is part of the EIB Group. Its main goal is to support microenterprises and SMEs by helping them to access finance and venture capital. The EIF also actively supports climate fund investments with a strong focus on environmental sustainability. Its activities foster EU objectives promoting innovation, research and development, entrepreneurship, growth and job creation.