Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. EIB Group and BNP Paribas sign new securitisation transaction
Industry news

EIB Group and BNP Paribas sign new securitisation transaction


21 December 2022 Europe
Reporter: Sophie Downes

Generic business image for news article
Image: everythingpossible
The EIB Group, composed of The European Investment Bank (EIB) and European Investment Fund (EIF), has signed its fourth synthetic securitisation transaction with BNP Paribas since 2017.

Similar to the three previous transactions, its investment will support small and medium-sized companies while contributing to the transition to climate neutrality.
The EIF is providing protection on a mezzanine tranche of €106 million, which is in turn counter-guaranteed by the EIB, in the form of an unfunded guarantee.

As part of the transaction, BNP Paribas is transferring credit risk on a mezzanine tranche through the EIF guarantee. The securitised loans portfolio remains on the bank’s balance sheet.

Under the arrangement, BNP Paribas pledges to supply new lending of €425 million to French small businesses and mid-caps over a two-year period.

20 per cent of this financing will be allocated to projects aligned with climate action and environmental sustainability.

Ambroise Fayolle, vice-president for EIB, says: “Financing (small businesses and mid-caps) is an EIB and EU priority — one to be achieved by working with our banking partners to develop attractive credit solutions that help sustain business operations and support investment.”

Marguerite Bérard, head of French retail banking of BNP Paribas and member of the executive committee, adds: “This new financing will further contribute to our customers’ efforts to accelerate their energy transition.

“It comes in addition to our many support schemes for corporate clients designed to accommodate the local economic reality, as closely as possible.”
← Previous industry article

Edaa delays shortening settlement cycle
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Companies in this article
→ BNP Paribas

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →