FRANFINANCE CA&ES LOAN FOR SMES AND MIDCAPS

Promoteur – Intermédiaire Financier

FRANFINANCE SA

Lieu

• France

Description

The operation consists of a loan to Société Générale to be utilised by Franfinance (Leasing subsidiary operating through a vendor network in France) to provide leases to small and medium sized enterprises (SMEs) and mid-caps.

Additionality and Impact

The operation will provide funding to the promoter, Franfinance, a subsidiary of Société Générale, with the aim of generating additional lending to French SMEs (70% of the volume) and MidCaps (30%). Franfinance will use the funding to provide loans and finance leasing (originated via a network of vendors) in favour of SMEs and Midcaps. Recent surveys carried out by the Banque de France on this market segment signal a decline in the approval of loans to purchase tangible assets, as well as an increase of interest rates. The availability of long-term funding is also a constraint. The operation foresees that at least 15% of the investment volume will be dedicated to Climate Action projects, mainly supporting energy efficiency and renewable energy investments. An additional 15% will be dedicated to Circular Economy, in the form or the refurbishment and re-lease of used goods and machinery.

 

The EIB's intervention will support French SMEs' and Midcaps' access to finance in a difficult economic environment due to the remaining impacts of the pandemic, the war in Ukraine and the resulting delays in supply chains, and the inflation.

 

With its ambition to finance at least 30% Climate Action and Circular Economy sub-projects, the operation will contribute to EU and national policy objectives. The intervention aims to contribute to generate positive environmental externalities and support the ecological transition.

Objectifs

The aim is to enhance access to finance to the target beneficiaries, including those implementing projects in the field of Climate Action and Circular Economy.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 350 million

Coût total (montant approximatif)

not applicable

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 22/12/2023