BNP Paribas Collaborates with EIB Group for the Third Synthetic Securitisation, Boosting Support for French Companies

BNP Paribas Collaborates with EIB Group for the Third Synthetic Securitisation, Boosting Support for French Companies

(IN BRIEF) The European Investment Bank (EIB) Group, in collaboration with BNP Paribas, has launched a synthetic securitisation initiative to support French companies for the third time since 2017. The transaction involves an EIB Group guarantee on an existing loan portfolio provided by BNP Paribas to French small and medium-sized enterprises (SMEs) and mid-caps. By utilizing the guarantee, BNP Paribas can free up regulatory capital and deploy €475 million in new loans to SMEs and mid-caps in France over the next two years. These financing options may include bank loans or leasing arrangements, and beneficiaries will enjoy favorable financial conditions through the EIB’s on-lending arrangement. The objective of this collaboration is to foster economic growth and enhance access to financing for French businesses, particularly SMEs and mid-caps.

(PRESS RELEASE) PARIS, 22-May-2023 — /EuropaWire/ — BNP Paribas (EPA: BNP), European Union’s leading bank, in partnership with the EIB Group comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), is delighted to announce the launch of a synthetic securitisation initiative aimed at providing crucial support to French companies.

Under this transaction, the EIB Group guarantees an existing loan portfolio extended by BNP Paribas to small and medium-sized enterprises (SMEs) and mid-caps in France.

The guarantee arrangement allows BNP Paribas to optimize the regulatory capital allocated to this portfolio, facilitating the deployment of €475 million in new loans to SMEs and mid-caps across France over the next two years.

The financing options made available through this initiative can be in the form of bank loans or leasing transactions, ensuring flexible solutions to suit the diverse needs of businesses. Additionally, beneficiaries will benefit from enhanced preferential financial conditions through the EIB’s on-lending arrangement.

As a leading financial institution, BNP Paribas is committed to driving economic growth and supporting the development of French businesses. Through our collaboration with the EIB Group, we aim to provide enhanced access to financing, enabling SMEs and mid-caps to thrive and contribute to the growth of the French economy.

Marguerite Bérard, Head of French Retail Banking of BNP Paribas and member of the Executive Committee, remarked, “With the success of previous transactions with the EIB Group, we are thrilled to now be able to commit to making €475 million in new financing available to SMEs and mid-caps at reduced rates over the next two years. This financing comes in addition to our many support schemes for corporate clients designed accommodate, as closely as possible, the local economic reality. With a view to helping our customers accelerate their energy transition, enhancing the financing conditions for sustainable assets is one part of a long-standing BNP Paribas approach, which includes the use of impact financing.”

EIB Vice-President Ambroise Fayolle explained, “With this, their third joint securitisation since 2017, the EIB and BNP Paribas are continuing their efforts to facilitate access to finance for SMEs and mid-caps. Financing these entities is an EIB priority — one to be achieved by working with our banking partners to develop attractive credit solutions that help sustain business operations and support investment.”

EIF Chief Executive Marjut Falkstedt added, “The EIF is pleased to be working with BNP Paribas to use our securitisation tools to provide additional resources to SMEs and mid-caps. The BNP Paribas group is a long-standing and trusted partner for the EIF, enabling it to provide effective support to French companies in their search for financing for their investments.”

BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 185,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.

The EIB was created by the Treaty of Rome and founded in 1958. It is the long-term financing institution of the European Union, and its shareholders are the 27 Member States. The EIB’s remit is to finance projects that contribute towards the integration, balanced development and economic and social cohesion of the European Union. It borrows large volumes of funds on the capital markets and lends them on very favourable terms to support projects that help Europe achieve its major objectives. As the EU climate bank, it aims to encourage the emergence and deployment of new technologies to meet ongoing challenges such as the energy transition to a new low-carbon growth model. In 2022, EIB investments in France for renewable energy, clean mobility and energy efficiency came to €5.9 billion, 70% of the total financing of €8.4 billion for the country.
To learn more about the EIB, visit www.eib.org

The EIF is part of the EIB Group. Its main goal is to support microenterprises and SMEs by helping them to access finance and venture capital. The EIF also actively supports climate fund investments with a strong focus on environmental sustainability. Its activities foster EU objectives promoting innovation, research and development, entrepreneurship, growth and job creation.

Media contact:

Thomas Alexandre
Investment & Protection Services
+33 (0)6 02 19 48 69
thomas.alexandre@bnpparibas.com

SOURCE: BNP Paribas