New EIB Group securitisation enables Coop Pank to expand SME lending with focus on gender equality and climate action

New EIB Group securitisation enables Coop Pank to expand SME lending with focus on gender equality and climate action

(IN BRIEF) The EIB Group has entered into a landmark synthetic securitisation agreement with Estonia’s Coop Pank, enabling the release of capital that will support up to €249 million in new lending to businesses across the country. Through guarantees provided by the European Investment Bank and the European Investment Fund, Coop Pank can transfer part of the risk associated with an existing loan and lease portfolio, freeing up capacity to finance SMEs and mid-cap companies. The new financing will prioritise projects that promote gender equality, environmental sustainability and long-term economic growth, with specific allocations reserved for social impact and climate-related investments. As Coop Pank’s first synthetic securitisation and the first single-country transaction of its kind in the Baltics, the deal also strengthens the Estonian banking sector and demonstrates how innovative capital market instruments can support inclusive and sustainable development at a national level.

(PRESS RELEASE) TALLINN / LUXEMBOURG, 16-Dec-2025 — /EuropaWire/ — The European Investment Bank Group has agreed a new synthetic securitisation with Estonia’s Coop Pank that is expected to unlock up to €249 million in fresh financing for businesses across the country. The transaction, involving both the European Investment Bank (EIB) and the European Investment Fund (EIF), provides capital relief to Coop Pank and allows the lender to expand its loan and leasing activity for small and medium-sized enterprises (SMEs) and mid-cap companies, with a strong focus on sustainability and social impact.

By transferring part of the credit risk linked to a €200 million portfolio of existing loans and leases to the EIB Group through guarantees, the agreement reduces Coop Pank’s capital requirements and creates additional lending capacity. The resulting financing will support Estonian companies undertaking projects that contribute to gender equality, environmental protection, and broader economic development.

The deal represents Coop Pank’s first-ever synthetic securitisation and is also the first transaction of this type in the Baltic region based entirely on assets from a single country. Through the arrangement, Coop Pank will be able to provide up to €249 million in new loans and leases by the end of 2028. Of this amount, at least €49 million is earmarked for initiatives advancing gender equality, while a minimum of €17 million is reserved for climate action and environmentally sustainable projects.

The risk-sharing structure sees the EIF providing protection on both the senior tranche of €171 million and the mezzanine tranche of €26 million, with additional guarantees from the EIB. Coop Pank retains the junior tranche of €3 million, aligning incentives and ensuring continued risk ownership. The transaction includes features such as a revolving period of two and a half years, synthetic excess spread and pro-rata amortisation of the senior and mezzanine tranches, subject to portfolio performance.

EIB Vice-President Karl Nehammer highlighted that the agreement demonstrates how innovative financial instruments can mobilise substantial funding for SMEs while supporting inclusive growth and the green transition. EIF Chief Executive Marjut Falkstedt added that the transaction strengthens Estonia’s financial ecosystem and channels funding towards projects with tangible social and environmental benefits.

For Coop Pank, the agreement marks a significant step in expanding its role as a domestic lender supporting Estonia’s business community. The bank views the transaction as a way to reinforce its commitment to sustainable growth while offering companies access to financing solutions that help them invest, grow and contribute positively to society.

Background information

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking has reached 224,000. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The bank’s strategic owner is Coop Eesti, a domestic retail chain with a network of 320 stores across the country

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. In 2024, Estonia received €498 million in financing from the EIB Group, fuelling business innovation and green growth.

Press contacts

Coop Pank:

Katre Tatrik, Katre.tatrik@cooppank.ee, tel: +372 5151 859

Website: www.cooppank.ee

Kristiina Randmaa, k.randmaa@ext.eib.org, tel.: +352 4379 72894

Website: www.eib.org/press — Press Office: +352 4379 21000 — press@eib.org

SOURCE: European Investment Fund