Germany: EIB and Commerzbank agree on new global loan
6 February 2013
The European Investment Bank (EIB) is again making substantial loans available for companies from Germany’s Mittelstand. To this end it today concluded a financing agreement covering 400 million euros with Commerzbank in Frankfurt. The new funding framework will benefit small firms as well as medium-sized companies.
More than 95 per cent of German companies belong to the “Mittelstand” (small and medium enterprises, SME). In the financing of small- and medium-sized enterprises the EIB cooperates with financial institutes such as Commerzbank. The newly-signed loan agreement focuses on the financing of projects to be implemented in Germany.
Commerzbank, whose core business includes the Mittelstand, has long been one of the most important financing partners of the EIB in Germany. The new loans are to be made available to companies from various industries.
Furthermore, the two banks today concluded an additional financing agreement for 200 million euros. These funds are earmarked especially for the financing of smaller projects on the part of the public and private sectors in the energy field.
“SMEs remain a key topic for the EIB because it is they who are driving the growth in Europe. Commerzbank is an ideal partner for Mittelstand business in Germany. Thanks to its expertise, it is not only able to identify suitable projects in a reliable manner, but it also ensures that the funds are transferred swiftly – a crucial aspect for the clients,” said Wilhelm Molterer, Vice President of the EIB and responsible, among other things, for financing in Germany.
“As the leading bank for the Mittelstand in Germany we have been utilising the financing possibilities offered by the business development banks for many years already,” said Markus Beumer, a Member of the Board of Managing Directors of Commerzbank and responsible for Mittelstandsbank. “With the two new credit lines we can continue to meet the growing needs of our clients in the Mittelstand and the local authority sector – thus allowing us to offer them individual, long-term financing solutions with flexible terms for interest rates and maturities.”
EIB Vice-President Lilyana Pavlova, responsible for operations in the Western Balkans, met with Serbian Prime Minister Ana Brnabić today in an online meeting to discuss the EIB’s investment plans for Serbia. The EIB reaffirmed its commitment to help the region in its COVID-19 recovery and to support private sector development and the region’s transformation into a greener and more digitalised economy.
The EIB has advanced a new €100 million loan to Pekao Leasing for the financing of small and medium-sized enterprises (SMEs). Further to the EIB mandate and the loan agreement, a considerable part of the funds will be used for financing energy efficiency measures and developing sustainable energy initiatives as well as preparing a competitive leasing offer for enterprises owned or managed by women.
The EIB Group, consisting of the EIF and the EIF, has provided a guarantee for a mezzanine tranche of a synthetic securitisation transaction of around €130 million to the ´Bank für Tirol and Vorarlberg AG´ (BTV). The transaction was arranged by Erste Bank and is expected to provide capital relief under the EU Capital Requirements Regulation framework. It employs the use of a synthetic excess spread equivalent to the one-year expected loss of the reference portfolio. The capital relief provided by the transaction will enhance BTV’s risk-taking capacity and create additional lending headroom. As a result, BTV will create a new portfolio of eligible loans to SMEs and mid-caps of up to €435 million, mainly in Tirol, Vorarlberg, Vienna and southern Germany. The EIB Group operation is a direct response to the COVID-19 pandemic as the current crisis puts a particular strain on SMEs and mid-caps, which are experiencing shortages in liquidity and funding lines.