EIB Group and BNP Paribas launch new securitisation operation to support French companies facing the consequences of the COVID-19 crisis
The EIB Group, made up of the European Investment Bank (EIB) and European Investment Fund (EIF), and BNP Paribas have announced the signature of a synthetic securitisation to support French small and medium-sized enterprises (SMEs) and mid-caps hit by the consequences of an unprecedented pandemic crisis.
The operation, supported by the European Fund for Strategic Investments (EFSI), consists of an EIB Group guarantee on an existing portfolio of loans to SMEs and mid-caps. This credit protection enables BNP Paribas to free up part of the regulatory capital allocated to this portfolio and to deploy €515 million of new loans to SMEs and mid-caps in France over the next two years.
The financing operations may take the form of bank loans or leasing transactions. The beneficiaries of this financing will have access to favourable financial terms via an onlending deal granted by the EIB.
This operation falls under the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe. It will make it possible to strengthen support for SMEs and mid-caps hit by the consequences of the COVID-19 health crisis by meeting their cash flow and investment recovery needs. As a European operator recognised for its expertise in synthetic securitisations, the EIF was in charge of structuring the operation on behalf of the EIB.
European Commissioner for the Economy Paolo Gentiloni, said: “This agreement between the EIB Group and BNP Paribas in France, supported by the Investment Plan for Europe, is good news for SMEs and mid-caps hit hard by the coronavirus crisis. By enabling new loans to be unlocked on favourable terms for companies, this agreement is a clear signal of our steadfast support for businesses in these difficult times.”
“I am delighted to announce this new securitisation transaction with BNP Paribas,” said EIB Vice-President Ambroise Fayolle. “In the face of the economic consequences of the pandemic crisis, it is our responsibility to strengthen support for weakened companies with a solution tailored to their most pressing financing requirements. By doing so, we will help safeguard economic activity and promote investment recovery.”
EIF Chief Executive Alain Godard added: “The EIF is pleased to work with BNP Paribas and the EIB to provide additional financing access to SMEs and mid-caps. Combining the EIF's investment structuring expertise with efficient EFSI fund deployment by the EIB offers a competitive financing solution for BNP Paribas that will serve to boost the supply of finance in the real economy. In these difficult times, it is important for us to work with trusted partners to provide vital support to French businesses.”
“With this operation, we are happy to be able to commit to providing €515 million in new financing with reduced rates to SMEs and mid-caps over the next two years. This enables us to continue offering concrete and effective solutions to help companies to cope with the health crisis. As we have since the beginning of the pandemic, we will tirelessly maintain our role of supporting and advising our clients as well as all our financing and investment efforts to serve the economy,” said Head of French Retail Banking and Member of the Executive Board of BNP Paribas Marguerite Bérard.
This is the third securitisation transaction between the EIB Group and BNP Paribas since 2015.
Latest News from
Joint Statement by Executive Vice-President Frans Timmermans and High Representative/Vice-President Josep Borrell on the United States re-joining the Paris Agreement21/01/2021 16:33:00
Joint Statement given yesterday by Executive Vice-President Frans Timmermans and High Representative/Vice-President Josep Borrell on the United States re-joining the Paris Agreement.
Additional and more flexible funding to help those most in need21/01/2021 15:25:00
Parliament voted today to continue making additional resources available in 2021 and 2022 in order to provide food and basic assistance to the most deprived.
Portuguese Presidency wants EU to deliver on vaccines, recovery and transition21/01/2021 14:33:00
MEPs discussed the programme for the next six-month presidency of the Council of the EU this morning with Portugal’s Prime Minister António Costa.
EU will have stronger powers in trade disputes21/01/2021 13:25:00
On Tuesday, Parliament adopted new rules allowing the EU to use countermeasures in trade disputes when arbitration is blocked.
Speech by President Charles Michel at the European Parliament on the inauguration of the new President of the United States21/01/2021 12:08:00
Speech given yesterday by President Charles Michel at the European Parliament on the inauguration of the new President of the United States.
Remarks by Commissioner Stella Kyriakides at the press conference on key actions for a united front to beat COVID-1921/01/2021 11:33:00
Remarks given yesterday by Commissioner Stella Kyriakides at the press conference on key actions for a united front to beat COVID-19.
MEPs call for additional EU sanctions against Russia over Navalny’s imprisonment21/01/2021 10:38:00
MEPs strongly condemn Alexei Navalny’s arrest and call on the EU to extend sanctions against Russian officials to cover those involved in his jailing.
Covid-19 vaccinations: more solidarity and transparency needed21/01/2021 09:25:00
MEPs supported the EU's common approach to fighting Covid-19 and called for more unity and clarity during a debate on the roll-out of vaccines and the EU's vaccines strategy.
Coronavirus: Commission Statement on consulting Member States on proposal to further prolong and adjust State aid Temporary Framework20/01/2021 16:33:00
The European Commission yesterday sent to Member States for consultation a draft proposal to prolong until 31 December 2021 and further adjust the scope of the State aid Temporary Framework, initially adopted on 19 March 2020 to support the economy in the context of the coronavirus outbreak.