SYDBANK LRS ENHANCED SUPPORT

Promoteur – Intermédiaire Financier

SYDBANK A/S

Lieu

• Danemark
• Allemagne

Description

The operation consists in a guarantee covering a portfolio of loans to mid-caps operating across all EIB's eligible sectors in the country. More specifically, the EIB guarantee (an unfunded risk participation scheme under a full delegation approach) will cover up to 50% of the losses with respect to each defaulted loan of a portfolio.

Additionality and Impact

The proposed Linked Risk Sharing ("LRS") operation will support Mid-Caps in Denmark, Germany and potentially other EU Member States to foster access to liquidity and therefore enable long term economic growth. The operation 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.

This first LRS operation in Denmark aims to channel resources toward financing working capital and investment plans for Mid-Caps impacted by current economic uncertainty. Specifically, the guarantee will address the liquidity needs of Danish entities, providing benefits such as higher financing volumes, risk-taking support, and reduced collateral requirements thereby alleviating some of the pressures faced by the real economy and contributing to job security and growth.

For the Financial Intermediary, which is a first time EIB counterpart, the guarantee will allow reduction in risk weights, perception of risk and, more importantly, will create additional lending capacity. The EIB intervention through the LRS product, which is not readily available in the market, is expected to carry a strong signalling effect thereby maximizing the positive impact on the economy. 

Objectifs

The aim is to enable the intermediary to provide more loans to the target beneficiaries.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 200 million

Coût total (montant approximatif)

EUR 560 million

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 - 19/09/2024