Release date: 27 January 2025
Promoter – Financial Intermediary
PIRAEUS LEASING SINGLE MEMBER SALocation
Description
The operation consists of a multi-beneficiary intermediated loan (MBIL) to Piraeus Bank to benefit Piraeus Leasing that will on-lease the EIB funds to eligible small and medium sized-enterprises (SMEs) as well as mid-caps in Greece.
Additionality and Impact
The operation aims to address the constrained access to finance, namely to leasing financing, for SMEs and Midcaps in Greece, which stems from the market failure of asymmetric information. On top of this, the operation shall aim to support social inclusion by targeting companies that promote youth employment.
To achieve this, the operation is intermediated by one of the main leasing companies in Greece that is a repeat EIB counterpart that has successfully implemented the previous similar loan.
Enhancement of access to finance for final beneficiaries and improvement of financing conditions for them shall be achieved through the transfer of financial advantage deriving from the EIB funding, longer tenor of sub-loans and complementary portfolio. In turn, improved access to finance shall contribute towards companies' improved viability and competitiveness, also serving to maintain and create new jobs.
Therefore, the EIB's contribution in the project is notable. The financial contribution is based on the long tenor of the EIB loan, whereas the non-financial contribution entails crowding in of other private financiers, as EIB's participation sends a signalling effect to the market by reducing risk perceptions.
Objectives
The aim is to finance small/medium projects carried out by SMEs and mid-caps in Greece.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
not applicable
Environmental aspects
The 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 - 19/05/2025