EIB agreement mobilises €337m for French SMEs

The European Investment Bank (EIB) Group has entered into a €112m agreement with BNP Paribas aimed at supporting approximately €337m in new financing for small and medium-sized enterprises (SMEs) and mid-cap companies in France.

The transaction is structured as a synthetic securitisation, a risk-sharing mechanism under which part of the potential losses on an existing loan portfolio is guaranteed. This enables BNP Paribas to release regulatory capital and extend additional lending.

Under the agreement, BNP Paribas has committed to providing the new loans over a two-year period. At least 30 per cent of the financing — equivalent to a minimum of €101m — will be directed towards projects contributing to climate action and environmental sustainability.

Clotilde Quilichini, Head of Corporate Clients within BCEF at BNP Paribas, confirmed the bank’s commitment to deliver €337m in new loans to French SMEs and mid-cap companies, including financing supporting businesses in their energy transition.

As part of the structure, the European Investment Fund (EIF) is providing protection on a €112m mezzanine tranche — the intermediate risk layer of the portfolio — which is counter-guaranteed by the EIB. The underlying portfolio amounts to approximately €1.5bn and consists of mid-corporate loans originated by BNP Paribas’ BCEF division.

EIB Vice-President Ambroise Fayolle stated that the operation is designed to improve access to finance for smaller businesses and mid-caps, while also supporting investment in climate-related and environmentally sustainable projects.