BERENBERG LRS ENHANCED SUPPORT

Promoteur – Intermédiaire Financier

JOH. BERENBERG GOSSLER & CO KG

Lieu

• Allemagne
• Pays de l’UE

Description

Operation supporting mid-caps in Germany and other EU Member States in sectors that are in line with the EIB's long-term mission.

Additionality and Impact

This Linked risk sharing operation is designed to provide support to mid-caps in order to foster access to liquidity and contribute to long-term economic growth. The operation addresses the underlying market failure in access to finance faced by Final Beneficiaries due to information asymmetries and credit considerations on the side of the Financial Intermediaries. Given the economic uncertainty exacerbated by supply chain constraints, inflation, rising interest rates, energy security constraints, the lasting effects of the pandemic as well as the Russian aggression in Ukraine, 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 Revolving Credit Facilities to mid-caps for working capital and general finance and liquidity needs. The Financial Intermediary is an established player in the target market and a repeat client of the EIB. The EIB contribution rests on assuming credit risks and thereby allowing the Financial Intermediary to engage into transactions that it would not have engaged in without the EIB's intervention due to for example capital or credit risk related limitations.

Objectifs

The project consists of an unfunded risk participation scheme under a full delegation approach by which the EIB will cover up to 50% of the losses with respect to each defaulted loan of a portfolio of loans to mid-caps. Access to finance remains constrained for the time being as a result of the economic uncertainty exacerbated by the war in Ukraine, supply chain bottlenecks, energy security, and lasting effects of the pandemic. A pressing constraint for financial intermediaries is lending capacity, particularly as the unfolding economic crisis may lead to substantial downgrades in their existing lending books and corresponding increases in their minimum capital requirements. This leads to a vicious circle of a procyclical shift of remaining lending capacity into "lower-risk" assets, which was a main contributor to the last financial crisis. Therefore, the objective of the operation is to provide financing to mid-cap companies.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 150 million

Coût total (montant approximatif)

EUR 420 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 - 23/12/2022