EIB Group and ABN AMRO sign synthetic securitisation agreement, enabling €1.2 billion in new lending for Dutch businesses, part of the new funding is earmarked for sustainable SMEs.
ABN AMRO Bank has entered into a risk sharing agreement with the EIB Group – consisting of the European Investment Fund (EIF) and the European Investment Bank (EIB) – on a portfolio of over €1 billion in existing loans to Dutch businesses originated by ABN AMRO. Under this synthetic securitisation transaction, a guarantee structure from the EIB Group reduces ABN AMRO’s credit risk exposure, freeing up capital for new lending to small and medium-sized enterprises (SMEs) and Mid-Caps. The Dutch lender will thus be able provide over €1.2 billion in new financing at favourable rates to companies in the Netherlands. Part of the newly available financing is earmarked for environmental sustainability projects, supporting the transition to climate neutrality and a sustainable society.
With this ground-breaking transaction, the EIB Group and ABN AMRO build on their longstanding partnership to help Dutch business secure financing at competitive interest rates.
ABN AMRO Chief Commercial Officer Corporate Banking Dan Dorner: “We have a strategic goal to support SME’s and Mid-Caps. We are therefore delighted once again to be in a position to offer EIB financing to our clients. ABN AMRO and the EIB have partnered several years to provide financing to Dutch companies. The EIB offers favourable conditions for our clients. This transaction will support the economic growth of our clients and their transition to climate neutrality and boost the SME loans in the Dutch market.”
EIB Group vice-president Robert de Groot added: "We are proud to close this landmark deal, which is the largest securitisation transaction in EIB Group history. It is also our first collaboration of this kind with ABN AMRO, leveraging on the strong relationship between both banks. This partnership will significantly enhance the availability of financing for SMEs and Mid-Caps in the Netherlands, driving economic growth and job creation.”
Framework for financing
As part of their mission to support EU policy goals, the European Investment Bank (EIB) and European Investment Fund (EIF) work to enhance capital access for innovative companies in Europe and beyond. SMEs and mid-caps are a key part of the Dutch, European and global economy, creating jobs and driving economic development and innovation. Under the current partnership agreement with the EIB Group, ABN AMRO is able to offer Dutch borrowers a loan discount, subject to specific conditions. The final decision on lending activities under this facility rests with ABN AMRO.
Transaction details
This transaction is the first synthetic securitisation entered into between ABN AMRO and the EIB Group, referencing a portfolio of Dutch SME and corporate exposures and enables ABN AMRO to free up capital for new lending to Dutch SMEs and Mid-Caps, of which at least 30% will be allocated to projects aligned with criteria for climate action and environmental sustainability, highlighting the commitment of ABN AMRO and the EIB Group to support the transition to a low-carbon economy.
Both EIB and EIF are involved in the transaction. The EIF is providing protection on the mezzanine tranche of €150 million and on the senior tranche of €835 million. The EIF’s mezzanine tranche exposure as well as part of the EIF’s senior tranche exposure is in turn counter-guaranteed by the EIB. The junior tranche is fully retained by ABN AMRO. Key features of the transaction include synthetic excess spread, a three-year revolving period and pro-rata amortisation of the senior and the mezzanine tranches, subject to performance triggers.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The Netherlands owns a 5,2% share of the EIB. It makes long-term finance available for sound investment in order to contribute towards EU policy goals and national priorities. More than 90% of its activity is in Europe. Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, sustainable mobility, drinking water, healthcare and SMEs. In 2024 the EIB Group, which also includes the EIB’s subsidiary, the European Investment Fund (EIF), made available more than €3 billion for Dutch projects.
The European Investment Fund (EIF) supports Europe's micro, small and medium-sized enterprises by providing equity capital, loans and guarantees through a wide network of selected financial intermediaries. The EIF was established in 1994 and is active in all EU countries, prospective member countries, Liechtenstein and Norway. The majority shareholder of EIF is EIB and other shareholders include the European Commission and a range of European financial institutions.
ABN AMRO is a Dutch bank for retail, corporate and private banking clients, offering a full range of financial products and solutions. Our focus is on Northwest Europe. ABN AMRO’s purpose is Banking for better, for generations to come. Headquartered in Amsterdam, the bank serves over 5 million clients and employs more than 19,000 people. Please visit us at www.abnamro.com.