PIRAEUS BANK ENHANCED SME SUPPORT - EGF ABS FLP

Promoteur – Intermédiaire Financier

PIRAEUS BANK SA

Lieu

• Grèce

Description

European Guarantee Fund (EGF) guarantee instrument to support new lending to small and medium-sized enterprises (SMEs).

Additionality and Impact

The proposed transaction consists of an EGF operation, in the form of a first loss piece guarantee on an SME and Midcap portfolio originated by Piraeus Bank S.A. (Greece) in order to support new lending to SMEs. Piraeus is one of the largest bank in the country and a repeat intermediary for the Bank. The operation facilitates a quick mobilisation of financing for the SMEs, a sector key for employment and value added/growth. The proposed operation addresses a market failure related to SMEs access to finance in the aftermath of the Covid-19 pandemic. The operation is expected to mitigate the financial constraints and help viable companies to sustain their economic recovery and to relaunch their business activity severely hit by the pandemic. The operation also addresses the EU's economic, social and territorial disparities and hence contributes to the cohesion objective, by targeting companies in transition and less developed regions. EIB contribution is notable as it offers a guarantee for a subordinated (junior) tranche (novel product in the market). EIB/EIF also leveraged their status as supranational institutions and their AAA rating to provide the guarantee that is acceptable from a regulatory point of view. The EIB participation will have a positive signalling effect to the market and reduce risk perceptions.

Objectifs

The project aims to improve the access to finance for SMEs in Greece and hence support the economic recovery from the COVID-19 pandemic. SMEs are the backbone of the Greek economy and thus play an important role for value creation and employment. Moreover, the proposed operation will target 100% of the loan amount eligible projects promoted by SMEs located in less developed and transition regions.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 64 million

Coût total (montant approximatif)

EUR 540 million

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 30/06/2022