EIB Group and BNP Paribas Sign Securitisation to Unlock €337m for French SMEs and Green Projects

The European Investment Bank (EIB) Group has signed its sixth synthetic securitisation agreement with BNP Paribas since 2017, mobilising fresh financing for French small and medium-sized enterprises (SMEs), mid-caps and climate-focused investments.

Under the transaction, the EIB Group — comprising the EIB and the European Investment Fund (EIF) — will invest €112 million in a synthetic securitisation structure designed to reduce BNP Paribas' credit risk on an existing loan portfolio and free up capital for new lending.

In return, BNP Paribas has committed to providing €337 million in new loans over a two-year period to French SMEs, mid-caps and green projects.

At least 30% of the new lending will support projects aligned with climate action and environmental sustainability, reinforcing the partners' commitment to advancing the transition to a low-carbon economy.

Boosting SME Access to Finance and Climate Investment

Clotilde Quilichini, Head of Corporate Clients within BCEF at BNP Paribas, said the operation strengthens support for business growth and energy transition efforts.

"We are pleased to commit to €337 million in new loans to support French SMEs and mid-caps in their development, particularly in their efforts to accelerate their energy transition," Quilichini said.

"These new financings add to our many initiatives aimed at helping our business clients across the country realise their growth projects."

EIB Vice-President Ambroise Fayolle highlighted the transaction's dual focus on competitiveness and sustainability.

"This transaction will also support investments that advance climate action and environmental sustainability, helping SMEs to adapt and remain competitive in face of global challenges, like climate change and technological disruptions," Fayolle said.

EIF: Securitisation a Powerful Tool for Green Finance

EIF Chief Executive Marjut Falkstedt described securitisation as an effective mechanism for generating new financing capacity.

"Securitisation has proven to be a highly effective tool for generating new financing opportunities — particularly in green finance — while also helping to advance the EU's Savings and Investment Union objectives," Falkstedt said.

BNP Paribas is one of EIF's long-standing partners, with five previous securitisation transactions completed since 2017.

How the Synthetic Securitisation Works

In this synthetic securitisation:

• The EIF provides protection on a €112 million mezzanine tranche

• The EIB counter-guarantees the EIF exposure

• BNP Paribas retains the senior and junior tranches

Through the unfunded guarantee structure, BNP Paribas transfers the credit risk of the mezzanine tranche while keeping the underlying loan portfolio on its balance sheet — a hallmark of synthetic securitisation.

The transaction qualifies as STS (Simple, Transparent and Standardised) under EU rules.

€1.5 Billion Underlying Portfolio

The securitised portfolio consists of approximately €1.5 billion in outstanding mid-corporate loans, originated by BCEF, representing BNP Paribas' exposure to mid-cap and upper-SME borrowers in France.

The deal includes:

• A pro-rata amortisation structure

• Switch-to-sequential triggers linked to credit performance indicators

• A synthetic excess spread feature

• A two-year replenishment period allowing additional eligible assets to be added

The structure is designed to deliver optimal risk-weighted asset (RWA) relief, enabling BNP Paribas to increase lending capacity to the real economy.

Supporting France's SMEs and the Green Transition

By unlocking €337 million in new financing — with a strong climate focus — the transaction strengthens access to capital for French companies while advancing EU climate objectives and financial integration goals.

The agreement reflects continued collaboration between European public finance institutions and private banks to scale up support for SMEs and accelerate the shift toward climate neutrality.