EIB and Groupe BPCE Expand Partnership to Provide Over €1 Billion for French SMEs’ Innovation and Renewable Energy Projects

EIB and Groupe BPCE Expand Partnership to Provide Over €1 Billion for French SMEs’ Innovation and Renewable Energy Projects

(IN BRIEF) The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has teamed up with Groupe BPCE to support small businesses and mid-caps in France. They signed two financing agreements exceeding €1 billion to fund projects focused on innovation and the energy transition. The first involves the securitisation of an €800 million loan portfolio, generating €1.6 billion in total financing for SMEs, while the second provides €250 million for renewable energy projects. This partnership strengthens their ongoing collaboration to promote sustainable, low-carbon growth and aligns with both EU and French goals for renewable energy and innovation.

(PRESS RELEASE) LUXEMBOURG, 17-Oct-2024— /EuropaWire/ — The European Investment Bank (EIB) Group, in partnership with Groupe BPCE, has announced a significant boost for French small businesses and mid-cap companies, with two new financing operations aimed at promoting innovation and the energy transition. The EIB Group, consisting of the EIB and the European Investment Fund (EIF), signed agreements with Groupe BPCE to provide more than €1 billion in support of projects driven by these companies, with a strong focus on renewable energy and cutting-edge research initiatives.

The collaboration between the EIB Group and Groupe BPCE, which has been a long-standing alliance, is marked by two key actions. The first initiative revolves around the securitisation of an €800 million loan portfolio, which will unlock a total of €1.6 billion in financing for SMEs and mid-cap firms. This will provide essential funding for companies aiming to innovate and transition to more sustainable energy models. The second initiative is a €250 million commitment from the Banques Populaires and Caisses d’Epargne, earmarked for renewable energy projects within SMEs and mid-cap enterprises. This funding will primarily target solar photovoltaics, onshore wind energy, biomass, and biogas production through agricultural waste treatment.

These operations reflect both the French government’s and the European Union’s priorities in driving forward the energy transition and promoting sustainable growth. By investing in renewable energy projects, these initiatives are directly aligned with EU energy goals and the broader fight against climate change. Moreover, they support the EIB’s strategic objectives for climate action and renewable energy financing.

The securitisation operation, involving the Groupe BPCE’s loan portfolio, sees the EIB and EIF contributing €750 million and €50 million respectively, creating a robust financing framework that will enable innovation and research among French firms. This operation is part of a broader push to establish a European savings and investment union, a key focus area for the EIB, as highlighted in Mario Draghi’s recent report on European competitiveness.

In addition to supporting SMEs in their pursuit of innovation and sustainable energy, this initiative contributes to Groupe BPCE’s broader “Vision 2030” strategic plan, which emphasizes creating accessible, impactful local solutions. Hélène Madar, Head of Retail Banking and Insurance at Banque Populaire and Caisse d’Epargne, noted the significant impact this collaboration will have on accelerating the financing of energy transition and innovation projects for their customers. Meanwhile, Jérôme Terpereau, Groupe BPCE’s Head of Finance, highlighted the role of this partnership in showcasing BPCE’s expertise in securitisation and its importance in meeting growing customer demand for competitive, sustainable financing solutions.

Ambroise Fayolle, Vice-President of the EIB, expressed his satisfaction with the strengthened partnership, emphasizing that this collaboration is a prime example of the EU’s support for SMEs in their transition to greener, more innovative business models. Similarly, EIF Chief Executive Marjut Falkstedt reiterated the importance of this initiative in fostering climate action, innovation, and digitalisation among French SMEs, underscoring the EIB Group’s commitment to sustainable investment in France.

The financing agreements serve as a testament to the EIB Group’s and Groupe BPCE’s shared dedication to facilitating the transition toward a more sustainable and innovative economic future for French companies.

Background information

About the EIB

The European Investment Bank is the long-term lending institution of the European Union, owned by the Member States. It makes long-term finance available for sound investments that pursue EU policy goals.

About the EIF

The European Investment Fund is part of the EIB Group. Its main goal is to help SMEs access financing. The EIF designs and deploys venture capital, growth capital, guarantee and microfinance instruments specifically targeted at this market segment. Its activities pursue EU objectives promoting innovation, research and development, enterprise creation, growth, and job creation.

About Groupe BPCE

Groupe BPCE is the second-largest banking group in France. With its 100 000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset and wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The group’s financial strength is recognised by four rating agencies with the following preferred senior long-term ratings: Moody’s (A1, stable outlook), Standard & Poor’s (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook).

Media Contact:

Christophe Alix
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+352 4379 – 84303

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SOURCE: European Investment Bank