EIF to credit enhance Geldilux transaction of HVB

EIF is pleased to announce its latest guarantee for a securitisation transaction, Geldilux 2005, which was launched on 1 June. Originator of the securitised portfolio is Munich-based HypoVereinsbank (HVB), Germany's second largest private-sector bank specialised in serving small and mid-sized companies, commercial and industrial enterprises, and self-employed entrepreneurs on a regional basis. The transaction contributes to a greater availability of finance for German SMEs.

In the Geldilux transaction, EIF will credit enhance EUR 16.5m of mezzanine notes issued in respect of a securitisation of loans originated by HVB, which also arranged the deal. The securitised portfolio of EUR 5.5 billion consists of short term Euroloans to SMEs, mid caps and, to a limited extent, private borrowers. It benefits from daily replenishments and stringent portfolio criteria. On the Issue Date, Geldilux TS 2005, the Luxembourg securitisation vehicle, will issue six classes of notes for each of the three series, with expected maturities of between three and five years. This transaction is the fifth Geldilux transaction by HVB and the first true sale securitisation of German SME loans with EIF involvement.