Release date: 1 October 2024
Promoter – Financial Intermediary
ACCEPTABLE BANK(S),STRATEGIC BANKING CORPORATION OF IRELANDLocation
Description
The operation will support small and medium sized businesses (SMEs) as well as mid-caps in Ireland, by providing finance to SBCI and other non-bank lenders (leasing companies, asset financiers, credit unions) in the country.
Additionality and Impact
SBCI's objective is to support SMEs and Midcaps (up to 30%) in Ireland to invest, innovate and to scale with this new financing. SBCI provides loans to financial sub-intermediaries, which on-lend the EIB funding as loans directly to eligible companies in Ireland. Financial sub-intermediaries may also include non-bank lenders (e.g. leasing companies, asset financiers, etc.) which often have limited access to favourable long-term funding otherwise. Specifically, these intermediaries shall be incentivised to lend to SMEs and VSMEs (Very Small and Medium Enterprises), the backbone of the Irish economy.
By providing dedicated funding via this EIB loan to various SME-financiers, SBCI pursues the objective of deepening the financial market in Ireland, which is highly concentrated across three commercial banks. In addition, the provision of this EIB-operation can provide lenders with certainty around the availability of long-term finance. Enabling lenders to lend to borrowers at longer tenors can help to alleviate the tenor constraints which limit long-term investment by SMEs and VSMEs.
The operation targets 2% CAES (Climate Action and Environmental Sustainability) contribution in line with the applicable standard for Loan for SMEs.
Objectives
The aim is to support eligible small/medium projects carried out by the target beneficiaries.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 200 million
Total cost (Approximate amount)
not applicable
Environmental aspects
The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 20/12/2024