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Reference: 20220826
Release date: 21 July 2023

Promoter – Financial Intermediary

DEUTSCHE LEASING ROMANIA IFN SA

Location

Description

The operation consists of a synthetic securitisation guarantee.

Additionality and Impact

Operation aims to help mitigate market failure of SME and Mid-Caps' insufficient access to long term funding for their investments at low financing costs. By addressing these market gaps, which are more acute in Romania compared to EU average, project in particular supports strengthening of EU's economic, social and territorial cohesion (73% expected to be implemented in cohesion regions). The small size of SMEs makes them more vulnerable to economic cycles and more constrained in opportunities for growth. A majority of the final beneficiaries are active in the agriculture sector. Additionally, 30% of the loan amount will be specifically dedicated to Climate Action. The guarantee under this operation provides capital relief, freeing up resources that allow the Financial Intermediary to increase support to SMEs and MidCaps under the new portfolio. The present operation builds on the solid track record of a previous similar guarantee operation with this financial intermediary, during which the FI leverages on his specific franchise in the target market to use the proceeds of the generated capital relief for the support of local SMEs and MidCaps, thereby multiplying the impact of EIB funds.

Objectives

The aim is to support eligible small/medium sized projects, including those focusing on green investments, carried out by small and medium sized enterprises (SMEs) and mid-caps in Romania.

Sector(s)

Proposed EIB finance (Approximate amount)

EUR 192 million

Total cost (Approximate amount)

EUR 567 million

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 15/12/2023

Milestone
Under appraisal
Approved
Signed
6 December 2023
15 December 2023

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

Romania Credit lines