Release date: 1 December 2021
Promoter – Financial Intermediary
BANK MILLENNIUM SA,MILLENNIUM LEASING SP ZOOLocation
Description
This operation, under the European Guarantee Fund (EGF), aims to support small and medium-sized enterprises (SMEs) in Poland. The EIB will purchase the first loss piece (FLP) tranche of a synthetic securitisation of a granular portfolio of loans and leases originated by Bank Millennium S.A. The operation is expected to facilitate the access to finance of SMEs and mitigate the negative economic effects of the COVID-19 pandemic.
Additionality and Impact
The securitisation instrument under the Pan-European Guarantee Fund (EGF) is designed to address liquidity and long-term investment needs of SMEs affected by the COVID19 pandemic. This operation in Poland addresses the underlying difficult market conditions in access to finance faced by SMEs due to information asymmetries, which has been further exacerbated by the ongoing pandemics. The project will be implemented by Bank Millennium ("BM") Group including the wholly owned subsidiary Millennium Leasing, a key player in the Polish leasing market. Most of the funding is expected to reach final beneficiaries located in cohesion regions of Poland, thus improving their access to adequate financing.
it should be highlighted that differently to any previous transaction, this operation will generate a high level of lending multiplier, ultimately conveying EIB's commitment to support SMEs in improving their access to finance.
In addition, EIB participation sends a signal to the market that will contribute towards crowding in private sector financial intermediaries while supporting economically viable companies which suffer temporarily by the COVID-19 pandemic. Overall, the project can contribute to the development of the Polish financial market and positively stimulate economic recovery, thereby sustaining employment.
Objectives
The operation aims to facilitate the access to finance for SMEs and mitigate the negative economic effects of the COVID-19 pandemic.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
PLN 300 million (EUR 67 million)
Total cost (Approximate amount)
PLN 2523 million (EUR 562 million)
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 3/03/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).