LRS - EU LE RISK SHARING INSTRUMENT

Promoter – Financial Intermediary

ACCEPTABLE BANK(S)

Location

• EU Countries

Description

The project consists in a Lending Envelope (LE) for new risk sharing operations in EU Member States. Sub-operations will be intermediated risk sharing operations with acceptable Financial Institutions such as banks, leasing companies and other eligible entities.

Additionality and Impact

The Lending Envelope ("LE") addresses the underlying market failure in access to finance faced by Final Beneficiaries due to information asymmetries and credit risk considerations on the side of the Financial Intermediaries. Given the ongoing economic uncertainty exacerbated by muted growth prospects in the EU, persistent inflation, energy insecurity, supply chain challenges and geopolitical instability the proposed risk sharing operations may alleviate some of the pressures EU economies face and therefore contribute to job security and job creation in the EU. As evidenced by the respective operations approved and signed under the existing PL, the EIB is uniquely positioned to further continue with an EU-wide LRS product across different geographies and currencies, and allows for higher risk operations to be included under the scope of the guarantee in order to maximize the positive impact on the economy and supporting the green transition.

Objectives

The aim is to enhance access to finance to mid-cap companies and public sector entities across the EU.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 2000 million

Total cost (Approximate amount)

EUR 5600 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

Approved - 15/04/2024