- The EIB Group has participated in an asset-backed securities issuance by BNP Paribas Personal Finance (BNPP PF) for a total amount of €450 million.
- This is the first true sale securitisation in France in which the EIB Group has participated since 2007.
- This operation will enable individuals to benefit from additional financing for energy-efficient home equipment.
The EIB Group (European Investment Bank, EIB, and European Investment Fund, EIF) has signed its first true sale securitisation transaction with BNP Paribas Personal Finance. Its total investment will support the transition to climate neutrality by financing home energy efficiency investments in existing buildings.
In total, the EIB Group has invested €450 million — €400 million from the EIB and €50 million from the EIF — in senior and mezzanine tranches of asset-backed securities backed by a consumer portfolio originated by BNP Paribas Personal Finance. Other private investors will invest €24 million in the junior tranches. The structure, derived from a €500 million portfolio composed of consumer loans originated by BNP Paribas Personal Finance, was structured by BNP Paribas Personal Finance and optimised to provide capital release for additional lending and funding. BNP Paribas CIB acted as strategic advisor on the transaction.
Under the arrangement, BNP Paribas Personal Finance pledges to supply fresh lending of around €627 million to private individuals over a three-year period. Financing will exclusively support energy-efficient housing equipment, notably high-energy performance boilers, insulation windows, and installation of solar panels. Altogether, these projects will contribute to the reduction of CO2 emissions.
"I would like to express my gratitude to the European Investment Bank Group for supporting us in this totally pioneering project. Thanks to its financial support, we will be able to finance €627 million in subsidized loans to households over the next three years, enabling them to switch to renewable energy and carry out the energy renovation of their homes.
This transaction is a further illustration of BNP Paribas Personal Finance's commitment to the ecological transition of households. Today, we are financing the energy transition of housing up to €4 billion, that is nearly 4% of our outstanding loans," comments Charlotte Dennery, CEO of BNP Paribas Personal Finance.
EIB Vice-President Ambroise Fayolle explained: “The EIB Group and BNP Paribas are joining forces to facilitate access to energy-efficient housing equipment for individuals. Supporting the development of credit with our banking partners in France to encourage household investments that contribute to the fight against global warming is a key mission for the EIB Group, and I'm delighted that this innovative financing scheme can make its contribution.”
EIF Chief Executive Marjut Falkstedt added: “Making the transition to a greener, more sustainable future is a top priority for the EIF and one that we share with BNP Paribas. That’s why we have joined forces to use our securitisation tools to make loans available to individuals so that they can invest in improving the energy efficiency of their homes. This operation is a good example of how innovative financing methods can help the private sector to adapt and combat global warming.”
Background information
About the European Investment Bank
As the EU climate bank, the EIB aims to encourage the emergence and deployment of new technologies to meet today's challenges, such as the energy transition to a new low-carbon growth model. In 2022, EIB investment in France for renewable energies, clean mobility and energy efficiency amounted to €5.9 billion, representing 70% of the Bank’s total financing in the country of €8.4 billion.
About the European Investment Fund
The EIF is part of the EIB Group. Its main objective is to support micro-enterprises and SMEs by helping them access finance and venture capital. The EIF also actively supports the Climate Fund's investments, focusing on environmental sustainability. Its activities further the European Union’s objectives of promoting innovation, research and development, entrepreneurship, growth and job creation.
About BNP Paribas Personal Finance
BNP Paribas Personal Finance is a major consumer finance player in France and Europe, offering a wide range of consumer credit products. A wholly-owned subsidiary of the BNP Paribas Group, the company offers, via its brands Cetelem, Findomestic and Alpha Credit, a full range of personal loans in stores, at car dealerships or directly to customers through its customer contact centres and online.
BNP Paribas Personal Finance has expanded its offering with insurance and savings products in several countries such as Germany, France and Italy.
Over a number of years, BNP Paribas Personal Finance has developed an active partnership strategy with retail chains, car manufacturers and distributors, e-commerce websites and other financial institutions (banking and insurance) based on its experience in the credit market and on its ability to offer integrated services tailored to the business activities and commercial strategy of its partners.
To support its customers and partners, BNP Paribas Personal Finance is committed to promoting access to more responsible and sustainable consumption.
