Release date: 20 February 2024
Promoter – Financial Intermediary
FRANFINANCE SALocation
Description
The operation consists of a loan to Société Générale to be utilised by Franfinance (Leasing subsidiary operating through a vendor network in France) to provide leases to small and medium sized enterprises (SMEs) and mid-caps.
Additionality and Impact
The operation will provide funding to the promoter, Franfinance, a subsidiary of Société Générale, with the aim of generating additional lending to French SMEs (70% of the volume) and MidCaps (30%). Franfinance will use the funding to provide loans and finance leasing (originated via a network of vendors) in favour of SMEs and Midcaps. Recent surveys carried out by the Banque de France on this market segment signal a decline in the approval of loans to purchase tangible assets, as well as an increase of interest rates. The availability of long-term funding is also a constraint. The operation foresees that at least 15% of the investment volume will be dedicated to Climate Action projects, mainly supporting energy efficiency and renewable energy investments. An additional 15% will be dedicated to Circular Economy, in the form or the refurbishment and re-lease of used goods and machinery.
The EIB's intervention will support French SMEs' and Midcaps' access to finance in a difficult economic environment due to the remaining impacts of the pandemic, the war in Ukraine and the resulting delays in supply chains, and the inflation.
With its ambition to finance at least 30% Climate Action and Circular Economy sub-projects, the operation will contribute to EU and national policy objectives. The intervention aims to contribute to generate positive environmental externalities and support the ecological transition.
Objectives
The aim is to enhance access to finance to the target beneficiaries, including those implementing projects in the field of Climate Action and Circular Economy.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 350 million
Total cost (Approximate amount)
not applicable
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 - 22/12/2023
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).