GBP 432m securitisation transaction for UK SMEs following EIF and RBS agreement

The European Investment Fund (EIF) and the Royal Bank of Scotland have closed a tranche cover guarantee on a portfolio of GBP 432m UK SME and mid-cap loans in the health care sector.

EIF’s guarantee allows RBS to release capital on a portfolio of over 1,900 loans. The freed up capital will provide extra capacity for RBS to further grow their SME and small mid-cap portfolio therefore increasing its support for SME lending in United Kingdom

The transaction was structured synthetically on a blind pool basis and the risk transfer was achieved with the assets on the Bank’s balance sheet.

EIF is an active player in the SME securitisation market providing guarantees to senior and mezzanine tranches. This transaction, the 9^th EIF capital relief transaction since 2015 and the first in the United Kingdom, benefits from the EIB Group Risk Enhancement Mandate (EREM), signed between the EIB and EIF in order to support the financing of European businesses.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.

About RBS

The RBS group is an international banking and financial services company. From its headquarters in Edinburgh, the Group provides financial products and services to personal, commercial, corporate and institutional customers, through its subsidiaries serving over 30 million clients in the United Kingdom and Ireland.

Press contacts:

EIF:
David Yormesor,
Tel.: +352 42 66 88 346,
e-mail: d.yormesor@eif.org

RBS:
Sophie Kydd,
Tel.: +44 2076721692,
e-mail: Sophie.Kydd@rbs.co.uk