New finance of approx. PLN 2 billion (€444 million) will be made available for Polish small and medium-sized businesses thanks to a synthetic securitisation of a portfolio of leasing and loan receivables
In the operation, the European Investment Fund and its parent, the European Investment Bank, guarantee a junior tranche in an amount of PLN 342 million (€ 74 million)
The transaction is the first securitization that is backed by the European Guarantee Fund and the first transaction where EIB group invests in the junior tranche of a synthetic securitisation

The European Investment Bank Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has signed a securitisation transaction with Santander Leasing S.A. that will help Santander Bank Polska group, thanks to capital relief and loss protection, to expand its financing for small and medium-sized businesses in Poland.

This is the first synthetic securitisation transaction backed by the European Guarantee Fund (EGF), an instrument set up by the EIB Group together with EU Member States to fight the economic consequences of the pandemic. The goal of the operation is to address the working capital and liquidity needs, and the investment constraints, of SMEs in the context of the ongoing COVID-19 pandemic and the gradual recovery from it.

Under the agreement, the EIB Group provides a First Loss Piece (FLP) guarantee of PLN 342 million (€74 million) in a synthetic securitization of a PLN 2.7 billion (€ 591 million) granular portfolio of leasing and loan receivables originated by Santander Leasing S.A., a member of Santander Bank Polska group. EIB Group’s FLP tranche exposure is backed by the EGF and the senior tranche will be retained by the originator.

Thanks to the capacity provided by the EGF through the EIB group, Santander Bank Polska group will make available approximately PLN 2 billion (€444m), equivalent to 6x of the FLP tranche, of new lending to Polish SMEs at beneficial terms (in the form of reduced interest rates). The funds will be allocated throughout the country and around 85% are expected to reach Polish cohesion regions.

EIB Vice-President, Teresa Czerwinska, said: “The EIB Group and Santander Bank Polska Group together provide strong financing to Polish companies. Thanks to this new operation, SMEs will be in a position to better prepare for the future, sustaining jobs and their business development. I am also pleased that this operation has the backing of the European Guarantee Fund, which is playing a key role in supporting SMEs all over the continent in the wake of the pandemic”.

EIF Chief Executive Alain Godard said: “Under the European Guarantee Fund, the EIF is increasing its financing for European SMEs and Poland is no exception. We are glad to sign another innovative transaction with our long-term partner, Santander Bank Polska Group. This large securitization will allow our polish partner to make more affordable finance available for SMEs. Additionally, it will help to ensure that the Polish financial market remains liquid and supportive to the business in those challenging times”.

Santander Leasing Vice-President, Krzysztof Kowalewski said: “We are very happy to conclude another agreement with EIB and EIF. Transferring part of our portfolio risk allows us to be more open to finance enterprises in Poland and to assist them in these difficult times. In financing fixed assets with lease not only do we support companies’ investments, which is crucial for their growth, but it also benefits the whole economy”.

Additional information:

This is the fourth securitisation transaction between the EIB Group and Santander Bank Polska Group since 2018 and the first one under the European Guarantee Fund. The previous three others had the backing of the European Fund for Strategic Investments. See more here: Investment Plan for Europe: Poland - EIB Group and Santander Bank Polska Group support new financing for Polish SMEs in response to COVID-19 crisis (eif.org)

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The bank finances projects in four priority areas – infrastructure, innovation, climate and environment, small and midi-sized companies (SMEs).

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 (SMEs) 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.

In 2020, the EIB Group provided €5.2 billion in financing to projects in Poland.

The European Guarantee Fund (EGF) was set up by the EIB Group with contributions from Poland and other EU Member States to shield companies suffering from the COVID-19 crisis. Using nearly €25 billion in guarantees, the EGF allows the EIB and the EIF to provide loans, guarantees, asset-backed securities, equity and other financial instruments available to mostly small and medium-sized enterprises. The EGF is part of the European Union’s recovery package aiming to provide a total of €540 billion to boost those parts of the EU economy that have been hit the worst.

Press contacts

EIB:

Katarzyna Karpiuk, k.karpiuk@ext.eib.org, tel.: +48 22 3100522 / Mobile: +48 502 355 687

Andrea Morawski, a.morawski@eib.org, tel.: +352 43 79 83427, mobile: +352 691 284 349

Website: www.eif.org - www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org