The EIB Group has entered into a synthetic securitisation transaction with BNP Paribas totaling €112 million, designed to partially release the bank’s regulatory capital and enable approximately €337 million in new financing for French small and medium-sized enterprises (SMEs) and mid-cap companies. At least €101 million of this funding is earmarked for projects supporting the transition to climate neutrality, highlighting the partners’ commitment to sustainable finance.
This marks the sixth such transaction between the EIB Group and BNP Paribas since 2017, building on prior operations to support SMEs and green investments in France. Under the arrangement, BNP Paribas pledges to provide €337 million in new lending over a two-year period, with a minimum of 30% allocated to climate-related and environmentally sustainable projects.
Clotilde Quilichini, Head of Corporate Clients at BNP Paribas, emphasized that the operation reinforces the bank’s efforts to support French SMEs and mid-caps, particularly in accelerating their energy transition. EIB Vice-President Ambroise Fayolle noted that the transaction facilitates access to finance for small businesses while promoting climate action and environmental sustainability. EIF Chief Executive Marjut Falkstedt added that securitisation is an effective tool to generate financing opportunities, especially for green projects, while supporting EU objectives.
Technically, the EIF provides protection on a €112 million mezzanine tranche counter-guaranteed by the EIB, while BNP Paribas retains the senior and junior tranches. This synthetic structure allows the bank to transfer credit risk while keeping the loan portfolio on its balance sheet. The underlying portfolio consists of mid-corporate loans totaling about €1.5 billion, representing BNP Paribas’ exposures to mid-cap and upper-SME borrowers.
The transaction features pro-rata amortisation, conditional triggers based on credit performance, a synthetic excess spread, and a two-year replenishment period to add eligible assets. It is structured to optimize risk-weighted asset relief, freeing lending capacity to support the real economy and encourage additional investment in sustainable and innovative projects.
The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), focuses on financing projects that advance EU policy priorities, including climate action, innovation, digitalisation, and social infrastructure. The EIF specializes in guarantees and equity to improve access to finance for SMEs and startups, mobilizing private investment and fostering venture capital development across Europe.
BNP Paribas, a leading European banking and financial services group operating in 64 countries, leverages this partnership to support SMEs, mid-caps, and green investment projects while integrating corporate social responsibility into its operations. The collaboration with the EIB Group strengthens financing opportunities, promotes sustainable growth, and enhances the competitiveness of French businesses.
