Release date: 21 July 2023
Promoter – Financial Intermediary
DEUTSCHE LEASING ROMANIA IFN SALocation
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)
- Credit lines - Credit lines
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
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).