EIF and KFW support a new transaction of leases to German SMEs originated by abcfinance group

The European Investment Fund (EIF) and KfW have invested in a new securitisation transaction by purchasing EUR 49m of mezzanine and EUR 90m of senior notes. The transaction, which is backed by a portfolio of leases to German SMEs, originated by abcfinance group Cologne, was arranged by Raiffeisen Bank International AG.

The transaction under ENSI the EIF-NPIs Securitisation Initiative, is a cooperation platform between EIF and National Promotional Institutions (NPIs), which aims to facilitate SMEs’ access to credit. The ENSI cooperation started in early 2016. To-date, four Italian transactions and one UK agreement have been closed under this program.

The involvement of KfW and EIF allows abcfinance group to raise long term funding, which will be reinvested by granting new leases to German SMEs in the next two years.

Last year alone, EIF committed approximately EUR 1bn to securitisation transactions, including support for mezzanine tranches and covering both funding and regulatory capital relief transactions. In 2015, KfW provided SME funding via securitisation investments worth EUR 838 million.

About EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About KfW

KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and ecological living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totaling EUR 79.3 billion in 2015 alone; and of this, 26% (EUR 20.4 bn) went into the promotion of small and medium-sized enterprises (SME) including individual entrepreneurs and start-ups. In addition to providing loans, equity and mezzanine financing, KfW supports capital market financing for SMEs by investing in related securitisations.

Press contacts

EIF: David Yormesor
Tel.: +352 42 66 88 346, e-mail: d.yormesor@eif.org

KfW: Nathalie Cahn
Tel.: 49 (0) 69 74 31 20 98, e-mail: nathalie.cahn@kfw.de