EIF and KfW sign deal helping to revive the EU SME securitisation market

The EIF and KfW jointly supported a true-sale securitisation program of program of Unicredit Bank AG for loans to small and medium sized enterprises (SME) in Germany. Geldilux is the first German SME transaction which has been placed with investors since the start of the financial crisis.

Commenting on the deal, EIF Chief Executive, Richard Pelly said: "The EIF has a key role to play in reviving the securitisation market for SME  loans across Europe in order to allow banks to mobilise additional funding and optimise capital resources. We hope that this will initiate  further SME securitisation deals in the near future which Will stimulate lending to this vital part of the European economy".

Thanks to this deal with KfW and the EIF, Unicredit will use the proceeds from this securitisation transaction to extend new SME financing.

Dr. Bräunig, member of the managing board of KfW Bankengruppe, said "With our engagement in Geldilux KfW wants to promote the revitalizing and the reopening of the European securitisation market for SME`s. This important refinancing source run dry since the beginning of the financial crisis".

About EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance.  EIF designs and develops venture capital and guarantees 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. The EIF total net commitments to private equity funds amounted to over EUR 4.3bn. With investments in over 300 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totaled over EUR 13.5bn in close to 160 operations, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor. 

About KfW Bankengruppe

KfW is the German promotional bank with the mission to promote economic, social and ecological development worldwide. As an entirely state-owned bank held by the Federal Republic and the Länder (German federal states), the bank offers support to encourage sustainable improvement in economic, social, ecological living and business conditions, among others in the areas of SME's, entrepreneurial enterprise, environmental protection, housing, infrastructure, education finance, project and export finance, and development cooperation. www.kfw.de

Contacts:       David Yormesor, EIF Communications Unit, tel +352 426 688 346, e-mail: d.yormesor@eif.org