Release date: 24 May 2024
Promoter – Financial Intermediary
BAYERISCHE LANDESBANKLocation
Description
Risk-sharing operation supporting mid-caps primarily in Germany and but also in other EU Member States. The operation contains a 10% Climate Action and Environmental Sustainability (CAES) window.
Additionality and Impact
This Linked risk sharing operation is designed to provide support to Mid-Caps in order to foster access to finance and contribute to long-term economic growth. Given the economic uncertainty exacerbated by elevated interest rates and core inflation, muted domestic consumption, energy security constraints and war in Europe's vicinity, the proposed risk sharing operation may alleviate some of the pressures faced by the real economy. Specifically, the operation will support social objectives such as employment via the provision of eligible transactions such as loans for working capital and investment purposes to mid-caps. The operation also supports projects that will contribute to the reduction in carbon and air pollution, improving the energy markets and general market efficiency and integration through participation in the wholesale markets.
The Financial Intermediary is an established player in the target market and has sufficient track record of implementing EIB products and allocations. The guarantee may alleviate capital- and credit related concerns of the Financial Intermediary and thereby free up additional lending capacity. The operation is expected to carry a signalling effect, thereby crowding in other parties. The product is not readily available on markets and an alternative means to promoting lending to the real economy compared to other promotional schemes available.
The financing of this project contributes towards the Bank's lending priority objectives on Energy (Renewable Energy and Energy Efficiency) with a contribution on Climate Action and Environmental Sustainability (Climate Action) as transversal objectives. The Climate Action components primarily concern the financing of renewable energy projects and electricity distribution investments located in Germany.
The individual projects are expected to have a good economic return, considering the economic value of the electricity generated. The projects are expected to lead to a broader social benefit. The EIB is providing capital relief, thereby contributing to financing in terms of volume and longer maturities.
Objectives
The aim is to enhance access to finance to mid-caps in Germany and in other EU Member States operating in eligible sectors.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 200 million
Total cost (Approximate amount)
EUR 560 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 - 26/06/2025