The European Investment Bank Group (the European Investment Bank and the
European Investment Fund) and BNP Paribas have signed a synthetic
securitisation to support French small and medium-sized companies weakened by
the consequences of the Covid-19 pandemic.
The EIB is
guaranteeing the mezzanine tranche of an existing portfolio of loans to French
SMEs and midcaps generated by BNP Paribas’ French Retail Banking network. This
frees up some of the regulatory capital allocated to the portfolio, allowing
BNP Paribas to provide €515 million new financing on favourable terms to SMEs
and midcaps in France. The financing – in the form of bank loans or leasing
transactions – will be deployed over the next two years.
This transaction, the third of its kind between the EIB and BNP Paribas, comes under the Investment
Plan for Europe or “Juncker plan”. It marks the transition towards the
deployment of the €25 billion European Guarantee Fund (EGF). As of 2021, the
EGF will enable the mobilisation of €200 billion of guarantees to support
companies affected by Covid-19.
Learn more about
Proxima 2 with Alain Papiasse, Chairman of BNP Paribas Corporate and
Institutional Banking, Marguerite Bérard, Head of French Retail Banking, and Ambroise Fayolle, Vice-President of the EIB.
