EBRD and Santander Leasing Sign First Synthetic Securitization Deal in Poland, Promoting SME Lending and Green Projects

EBRD and Santander Leasing Sign First Synthetic Securitization Deal in Poland, Promoting SME Lending and Green Projects

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has entered into a synthetic securitization agreement and new lending commitment with Santander Leasing, a subsidiary of Santander Bank Polska Group, marking the EBRD’s first capital relief transaction in Poland. Under this arrangement, the EBRD will provide €55 million in protection for the mezzanine tranche of a synthetic securitization backed by a €514 million portfolio of performing leasing and loan receivables from Santander Leasing. The deal aims to bolster the capital resilience of Santander Bank Polska Group and free up lending capacity for the real economy, with a focus on small and medium-sized enterprises (SMEs) and mid-caps. Santander Bank Polska Group has committed to reinvesting four times the EBRD guarantee in new lending, with 35% allocated to green projects promoting climate action and environmental sustainability. The initiative aligns with the EBRD’s Green Economy Transition criteria. The structured transaction adheres to European Union regulatory requirements, emphasizing transparency and higher transaction standards.

(PRESS RELEASE) LONDON, 10-Oct-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is building on its long-standing cooperation with Santander Bank Polska Group by signing a synthetic securitisation deal and new lending commitment with Santander Leasing, the Polish leasing subsidiary of Santander Group. This is the EBRD’s first capital relief transaction in Poland.

The EBRD is providing €55 million protection on the mezzanine tranche of a synthetic securitisation in the form of an unfunded guarantee. The underlying portfolio is a €514 million granular portfolio of performing leasing and loan receivables, originated by Santander Leasing S.A., a wholly owned subsidiary of Santander Bank Polska S.A.

The transaction will help Santander Bank Polska Group, a strategic banking partner of the EBRD in Poland, to enhance its capital resilience by achieving risk-weighted asset relief and to free up lending capacity to the real economy.

Santander Bank Polska Group has committed to redeploying the equivalent of four times the EBRD guarantee to new lending to small and medium-sized enterprises (SMEs) and mid-caps in the country. Thirty-five per cent of the new financing will be allocated to green projects that contribute to climate action and environmental sustainability. The project is aligned with the EBRD’s Green Economy Transition (GET) criteria, including renewable energy and energy efficiency financing.

The transaction has been structured in such a way as to satisfy the requirements for significant risk transfer under the European Union’s Capital Requirements Regulation and to achieve simple, transparent and standardised eligibility (subject to all customary approvals), promoting transparency and higher transaction standards.

EBRD Associate Director, Dariga Haynes said: “We are pleased to expand our cooperation with Santander Group in Poland to promote increased access to finance for the SME and mid-cap sector, and to advance Poland’s green economy transition. This is also the EBRD’s first synthetic securitisation in the country. It aims to support the adoption of an innovative instrument in the Polish financial market in a sustainable and prudent manner.”

Santander Leasing Chief Financial Officer, Marcelina Szuksztul said: “We are very satisfied that our long-standing collaboration with the EBRD has provided the foundation for us to become the EBRD’s partner in its first synthetic securitisation transaction in Poland. Our fruitful partnership helps to support SMEs and mid-caps and to develop green projects that contribute to environmental sustainability. This transaction is our continued commitment to supporting business growth. We are proud that Santander Bank Polska Group has a hand in the development of innovative solutions in the Polish financial market.”

Santander Leasing is 100 per cent owned by the Santander Bank Polska and is one of the largest leasing companies in Poland. It specialises in the financing of machinery, equipment and vehicles.

The Santander Bank Polska Group offers financial solutions to retail customers, micro, small and medium-sized enterprises, and domestic and international corporations. It operates one of the biggest networks of branches and partner outlets in Poland and delivers its services through electronic channels (including mobile banking). It is a market leader in modern technology in banking, consistently developing its brand in line with its strategic goal of being the best bank for customers.

It has been a member of the international Santander Group since 2011. The subsidiaries of the Santander Bank Polska Group offer investment funds, insurance, leasing, factoring and other products.

Since the start of its operations in Poland more than 30 years ago, the EBRD has invested more than €13.2 billion in 508 projects across the country. Promoting the low-carbon economy and strengthening the role of the private sector, including SMEs, are two key priorities of the EBRD’s work in Poland.

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SOURCE: EBRD