- This is the EIB Group’s first synthetic securitisation operation on a portfolio of consumer car loans originated by Deutsche Bank SpA in Italy. The EIF — with an EIB counter-guarantee — is providing a guarantee on two mezzanine tranches of the securitised portfolio for a total value of €150 million.
- The operation aims to unlock more than €594 million in investment for over 650 000 small businesses and mid-caps in Italy via the reuse of the capital freed up from the securitised portfolio by the EIF guarantee.
- €149 million in new financing will be allocated to companies investing in innovative projects.
- Up to €178 million will go to projects in social cohesion regions in Italy.
Almost €600 million in new financing is on its way to Italy thanks to a new agreement between the EIB Group — comprising the European Investment Bank (EIB) and European Investment Fund (EIF) — and Deutsche Bank. The transaction aims to support the investments of around 650 000 small and medium-sized enterprises (SMEs) and mid-caps in Italy, providing them with access to new resources.
The synthetic securitisation operation involves a portfolio of consumer car loans originated by Deutsche Bank SpA for which the EIF has provided a guarantee (counter-guaranteed by the EIB) on mezzanine tranches for a total of €150 million. This is the EIB Group’s second synthetic securitisation with Deutsche Bank (the first on a portfolio of consumer car loans in Italy) and, like the first, falls under the simple, transparent, and standardised (STS) securitisation framework approved by the European Parliament.
In concrete terms, the capital freed up by the EIF guarantee will be reused to provide over €594 million in new financing, around €149 million (25% of the new financing) of which will go to innovative companies to foster economic growth and up to €178 million (30%) to projects in social cohesion regions.
EIB Vice-President and EIF Chair Gelsomina Vigliotti said: “The EIB Group’s innovative financial products will provide Italian companies with access to new sources of financing, overcoming the traditional limitations of bank loans and thereby fostering economic growth, business diversification, and increased employment.”
Deutsche Bank Chief Country Officer Italy and CEO Western Europe Roberto Parazzini added: “This major agreement with the EIB Group will enable us to significantly increase resources to support the growth and development plans of Italian SMEs and mid-caps, which have always been among our target clients. We provide them with access to our global network and an integrated service platform covering the needs of retail clients, businesses and holding companies.”
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2022, the EIB Group provided €45 billion in financing for projects in Italy.
The European Investment Fund (EIF) is part of the European Investment Bank (EIB) Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance and venture capital. The EIF is also active in supporting climate and infrastructure fund investments with a strong focus on environmental sustainability. In this role, the EIF pursues the objectives of the European Union to support innovation, research and development, entrepreneurship, growth and employment.
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network. It has been operating in Italy — its largest EU market after Germany — for over 45 years.