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.