The European Investment Fund (EIF) and the Bürgschaftsbank Baden-Württemberg GmbH, representing the consortium of sixteen Deutsche Bürgschaftsbanken (German Guarantee Banks), have signed a CIP counter-guarantee agreement to support leasing transactions with Small and Medium-sized Enterprises (SMEs) in Germany.

The CIP cooperation with Deutsche Bürgschaftsbanken will allow leasing companies in Germany to substantially increase their leasing volumes to SMEs, including start-ups and will help to generate a new portfolio of leases worth up to EUR 200m over the next three years. Over 400 German companies are expected to benefit from this transaction. In cooperation with the Federal Association of German Leasing Companies (Bundesverband Deutscher Leasing-Unternehmen), Deutsche Bürgschaftbanken has developed a new guarantee product covering leasing agreements with SMEs.

Speaking at the signature ceremony in Stuttgart, EIF Deputy Chief Executive, Marjut Santoni said: “I am delighted to be signing the counter-guarantee agreement under the CIP Programme with Deutsche Bürgschaftsbanken for the benefit of SMEs in Germany. Allowing leasing companies via Deutsche Bürgschaftsbanken to increase leasing to SMEs will help entrepreneurs and start-ups in Germany to develop their businesses in the current difficult economic environment”.

Guy Selbherr, deputy CEO of Deutsche Bürgschaftsbanken and member of the board of Bürgschaftsbank Baden-Württemberg, commented: “We are pleased to sign our first agreement with the EIF on behalf of the German guarantee banks. With this agreement SMEs and start-ups in Germany will have better access to leasing financing. The support of the EIF will help SMEs to improve their balance sheet structure and stabilize company funding. The cooperation with leasing companies as intermediaries will enlarge our network of financial partners.”

About the EIF

EIF's central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 6.9bn at end 2012. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 4.7bn in close to 255 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Deutsche Bürgschaftsbanken

The 17 Guarantee Banks in Germany are members of the German guarantee association (VDB). The VDB is member of the European Association of Guarantee Societies – AECM – which represents its members' interests at EU level. The German Guarantee Banks are credit institutions within the meaning of the German Banking Legislation. Their purpose is to help SMEs and entrepreneurs of the liberal professions to access loan financing. In 2012 the German Guarantee Banks guaranteed more than 7.000 financing projects. They assumed guarantees for EUR 1.1 billion in volume, in terms of loans and investments amounting up to EUR 1.6 billion.

More information: www.vdb-info.de

About CIP

The Competitiveness and Innovation Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG).

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