A synthetic securitisation agreement of €335 million with the EIB Group reduces credit risk for Deutsche Leasing Romania and thus frees up lending capacity
The transaction is agreed alongside a commitment by Deutsche Leasing Romania to provide new financing of €439 million to small businesses and mid-caps, with an emphasis on environmentally sustainable projects, supporting a transition to climate neutrality and contributing to job creation and economic growth

The European Investment Bank Group (EIB Group), which includes the European Investment Bank (EIB) and the European Investment Fund (EIF), is strengthening its cooperation with Deutsche Leasing Romania IFN SA (DLRO), part of the Deutsche Leasing Group, by signing a synthetic securitisation transaction along with new lending commitments that will boost liquidity for Romanian businesses. The agreement aims to provide capital relief for DLRO, freeing up lending capacity, which will then be used to support Romanian small businesses and mid-caps while contributing to the transition to climate neutrality.

Specifically, the EIF is providing (i) protection on a mezzanine tranche of €54 million (which is in turn counter-guaranteed by the EIB), and (ii) protection on a senior tranche of €276 million (50% of which is in turn counter-guaranteed by the EIB). The structure, which features synthetic excess spread in the form of use-it-or-lose-it, a three-year replenishment period as well as pro-rata amortisation of the senior tranche and the mezzanine tranche (subject to performance triggers), references a portfolio of leases and loans with a total outstanding balance of €355 million.

Under this arrangement, DLRO is committing to provide new lending of €439 million to small businesses and mid-caps over a three-year period. Nearly 30% of the financing will be committed to projects contributing to climate action and environmental sustainability, highlighting the commitment of DLRO and the EIB Group to support the transition to a low-carbon economy.

The new lending, which will be in the form of leases and loans, is expected to benefit farmers in particular, with a substantial share of DLRO’s customers being farmers in cohesion regions. DLRO will focus on assets such as harvester replacement, tractor replacement, irrigation systems modernisation, no-tillage equipment, as well as energy efficiency in agriculture and other industries.

EIB Vice-President Kyriacos Kakouris said: “Together with Deutsche Leasing we support farmers in cohesion regions in Romania, promote the decarbonisation of the farming sector and help the green transition to become a reality. Deutsche Leasing is one of the EIB’s trusted partners to provide the necessary financial means to businesses in challenging times.”

EIF Chief Executive Marjut Falkstedt said: “We are very glad to be renewing our cooperation with Deutsche Leasing Romania to ensure easier and wider access to finance for climate action-related projects. This transaction will create financing opportunities in the form of fresh lending for Romanian businesses and farmers, and will also make a meaningful contribution to the green transition.”

Laurentiu Zaharia, General Manager of DLRO added: "This operation is a significant milestone for Deutsche Leasing Romania and our clients, allowing us to expand our financing options and offer more flexibility. The partnership with EIB Group reinforces our commitment to providing innovative tailored financial solutions to support growth and the success of our clients.” This is the second synthetic securitisation transaction between the EIB Group and DLRO, following up on an initial operation in 2020.

This is the second synthetic securitization transaction between the EIB Group and DLRO, following up on an initial operation in 2020.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. The EIB's remit is to contribute to the achievement of the European Union’s policy objectives by providing long-term finance for viable projects. The EIB’s activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure, and cohesion. The EIB works closely with other EU institutions to foster European integration, promote the development of the European Union and support EU policies in over 160 countries around the world.

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. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more.

The Deutsche Leasing Group is the leading solution-oriented asset finance partner for German small businesses and one of the leading providers of leasing in Europe, offering a broad range of investment-related financing solutions (asset finance) as well as supplementary services (asset services). Within Sparkassen-Finanzgruppe, Deutsche Leasing is the centre of excellence for leasing, factoring and other SME-oriented asset finance solutions and supplementary services in Germany and other countries. In its international business segment, Deutsche Leasing supports its customers activities in more than 20 international points, including their core European export markets, as well as in China, the USA, Canada, and Brazil.

Press contacts

European Investment Bank

Daniel Kozak | d.kozak@ext.eib.org | Mobile: +40 742 149 538 (Press Officer)

Website: www.eib.org/press — Press Office: +352 4379 21000 — press@eib.org

Deutsche Leasing

Katrin Krause | Katrin.krause@deutsche-leasing.com | Mobile: +49 160 8978212