BRED OVERSEAS REGIONS CLIMATE ACTION MBIL

The multiple beneficiary intermediated loan (MBIL) will support small and medium-sized enterprises (SMEs) and mid-caps located in French Overseas Departments and Regions.

The aim is to enhance access to finance for the final beneficiaries. At least 70% will be dedicated to SMEs while 20% to Climate Action and Environmental Sustainability projects.

This MBIL operation addresses the market failure in terms of difficult access to finance in France's Overseas Departments and Regions (i.e., Réunion, Martinique, Guadeloupe, and French Guiana) and Overseas Communities, which are France's less developed areas - 100% cohesion areas. Difficult access to finance represents a form of market failure characterized by incomplete and missing markets, as well as imperfect and incomplete information available to borrowers. The operation schedules a Climate Action and Environmental Sustainability (CA&ES) component - so-called "green window" - indicatively set at 20% of the total project costs, thus contributing to EIB's overall lending priority objective as well as to the EIB Climate Strategy. This will be achieved by boosting investments aimed at tackling climate change (energy efficiency in existing buildings, electric mobility, and renewable energy - photo-voltaic) and by increasing climate change awareness.

Overall, the projects to be financed are expected to yield good quality and results, by preventing releasing CO2 emission, by maintaining existing employment and creating new one. Further, the projects will be supported by the Borrower's adequate governance and capabilities.

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.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.