EIB Group and BNP Paribas sign new securitisation transaction
21 December 2022 Europe
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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.”
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.”
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