Secondary market transaction on Promise-I 2000-1

In a secondary market operation, EIF has provided a EUR 7m guarantee for credit-linked notes of issued by Promise-I 2000-1 plc (Germany). The notes are backed by a portfolio of loans to German SMEs originated by IKB Deutsche Industriebank Aktiengesellschaft. This deal represents EIF's third secondary transaction. Alessandro Tappi, Head of Guarantees and Securitisation at EIF, said, "SME ABS represent a very illiquid segment of the capital markets, particularly for mezzanine tranches. By selectively providing support to the liquidity of the secondary market, EIF sends an important positive signal to originators and primary market investors in mezzanine ABS backed by SME finance: the positive effects of secondary market enhanced liquidity translate into wider investor base, higher willingness to invest and lower liquidity premiums payable in the primary market."