The EIB Group - comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) - and Groupe BPCE recently signed two financing initiatives totalling over 1 billion to back innovation, research and energy transition projects led by small businesses and mid-caps.
These initiatives involve two concrete actions: on the one hand the securitisation of an 800 million loan portfolio, which will leverage a total of 1.6 billion in financing for small and medium-sized enterprises (SMEs) and mid-caps. On the other hand, the Banques Populaires and Caisses d'Epargne will also allocate 250 million to SME and mid-cap projects related to renewable energies.
The EIB Group and Groupe BPCE are long-standing partners in supporting investment by French firms. These operations step up their joint efforts to help SMEs and mid-caps finance innovation, research and making the energy transition towards new, more sustainable, lower-carbon growth models.
The first operation is a securitisation transaction conducted by the Groupe BPCE on an 800 million portfolio of loans to SMEs and mid-caps. It aims to support their innovation, research and energy transition-related activities. The EIB and EIF have invested 750 million and 50 million, respectively, in this securitisation operation, leveraging a total of 1.6 billion in new loans.
Securitisation was selected as part of efforts to develop a European savings and investment union - this is an EIB priority, and one that was also highlighted in the recent report by Mario Draghi on the future of European competitiveness.
The second operation, worth 250 million, supports SME and mid-caps projects in the field of renewable energy. The projects (of up to 50 million) will mainly concern facilities for solar photovoltaics, onshore wind, biomass and agricultural waste treatment for biogas production.
This operation is fully in line with the French and EU objectives for renewable energy production, and will help achieve EU energy goals and successfully fight global warming. It also supports the EIB's priority objectives for renewable energy lending, and will contribute to its climate action.
This specialised funding envelope implements Groupe BPCE's positive impact approach, which focuses on universally accessible local solutions and is therefore fully in line with its Vision 2030 strategic plan.
Banque Populaire and Caisse d'Epargne Head of Retail Banking and Insurance Hélène Madar said: "These financing initiatives will enable the Banques Populaires and Caisses d'Epargne to accelerate the funding of their customers' investment needs in key areas of the energy transition and innovation. It is also a concrete illustration of our close links with the EIB Group as its biggest private sector banking partner in France." Groupe BPCE Head of Finance Jérôme Terpereau added: "This major joint operation with the EIB Group showcases Groupe BPCE's financing and securitisation expertise. It will meet the growing needs of our customers, key for competitiveness and sustainable growth."
EIB Vice-President Ambroise Fayolle voiced satisfaction at the fact that "the EIB Group and Groupe BPCE are continuing and expanding their partnership to meet the investment needs of French companies, while promoting the energy transition and innovation, which are ever more closely linked. This collaboration is a clear example of the importance of EU efforts to aid SMEs in their green transition, and actively pursues France's priorities around promoting innovation and sustainable growth."
"This securitisation transaction with Groupe BPCE underscores our commitment to supporting investments by French SMEs in innovation, digitalisation and projects fostering climate action and environmental sustainability. We are very pleased to support this initiative," said EIF Chief Executive Marjut Falkstedt.
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).
