EIB and EIF support the first securitisation of SME loans by BES in Portugal

The European Investment Bank (EIB) and the European Investment Fund (EIF) - the EIB Group - are participating in the first securitisation of loans to small and medium-sized enterprises (SMEs) launched by Banco Espírito Santo (BES) in Portugal to improve financing conditions for SMEs.

The EIB has subscribed for EUR 150 million, which is almost 20% of the natural triple-A rated senior notes issued by Lusitano SME No.1 plc, a special purpose vehicle, backed by a pool of SME loans originated and serviced by BES.

Complementary to EIB's senior investment, the EIF wrapped (credit enhanced) the senior mezzanine tranche issued by Lusitano SME No. 1 resulting in a AAA rating of the EUR 41.0 million Class B Notes, and guaranteed the BB-rated junior mezzanine tranche on a bilateral basis, amounting to EUR 34.1 million. Accordingly, the EIB Group total involvement accounts for approximately 26% of the overall transaction of EUR 863 million including all of the mezzanine tranches.

EIB and EIF have once again joined forces to support a first time issuer of an SME CLO (collateralised loan obligation) and the transaction reaffirms the EIB Group commitment to its long-standing support for SMEs. Through this deal, the EIB extended its range of interventions to capital market operations. The EIF is an experienced player in SME-related capital markets transactions and participated, inter alia, as a guarantor in all four Portuguese SME CLOs hitherto launched.

BES, the originator of the deal, is an established counterparty of EIB with significant experience in the securitisation of its own assets, having completed nine such transactions, including mortgages, consumer loans and equipment leases.

Press contacts

EIF Delphine MUNRO email: d.munro@eif.org
telephone (00 352) 42 66 88 237 fax (00 352) 42 66 88 401.
Further information about EIF may be found at http://www.eif.org/

EIB Orlando ARANGO Email o.arango@eib.org
telephone (00 32) 2 235 00 84 fax (00 32) 2 230 58 27
Further information about EIB may be found at http://www.eib.org