EIB, EIF and Groupe BPCE strengthen partnership to support financing of innovation and energy transition for French small businesses and mid-caps

The EIB Group – comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) – and Groupe BPCE recently signed two financing initiatives totalling over €1 billion to back innovation, research and energy transition projects led by small businesses and mid-caps.

These initiatives involve two concrete actions: on the one hand the securitisation of an €800 million loan portfolio, which will leverage a total of €1.6 billion in financing for small and medium-sized enterprises (SMEs) and mid-caps. On the other hand, the Banques Populaires and Caisses d’Epargne will also allocate €250 million to SME and mid-cap projects related to renewable energies.

The EIB Group and Groupe BPCE are long-standing partners in supporting investment by French firms. These operations step up their joint efforts to help SMEs and mid-caps finance innovation, research and making the energy transition towards new, more sustainable, lower-carbon growth models. 

The first operation is a securitisation transaction conducted by the Groupe BPCE on an €800 million portfolio of loans to SMEs and mid-caps. It aims to support their innovation, research and energy transition-related activities. The EIB and EIF have invested €750 million and €50 million, respectively, in this securitisation operation, leveraging a total of €1.6 billion in new loans.

Securitisation was selected as part of efforts to develop a European savings and investment union – this is an EIB priority, and one that was also highlighted in the recent report by Mario Draghi on the future of European competitiveness.

The second operation, worth €250 million, supports SME and mid-caps projects in the field of renewable energy. The projects (of up to €50 million) will mainly concern facilities for solar photovoltaics, onshore wind, biomass and agricultural waste treatment for biogas production.

This operation is fully in line with the French and EU objectives for renewable energy production, and will help achieve EU energy goals and successfully fight global warming. It also supports the EIB’s priority objectives for renewable energy lending, and will contribute to its climate action.

This specialised funding envelope implements Groupe BPCE’s positive impact approach, which focuses on universally accessible local solutions and is therefore fully in line with its Vision 2030 strategic plan.

Banque Populaire and Caisse d’Epargne Head of Retail Banking and Insurance Hélène Madar said: “These financing initiatives will enable the Banques Populaires and Caisses d’Epargne to accelerate the funding of their customers’ investment needs in key areas of the energy transition and innovation. It is also a concrete illustration of our close links with the EIB Group as its biggest private sector banking partner in France.”

Groupe BPCE Head of Finance Jérôme Terpereau added: “This major joint operation with the EIB Group showcases Groupe BPCE’s financing and securitisation expertise. It will meet the growing needs of our customers, key for competitiveness and sustainable growth.”

EIB Vice-President Ambroise Fayolle voiced satisfaction at the fact that “the EIB Group and Groupe BPCE are continuing and expanding their partnership to meet the investment needs of French companies, while promoting the energy transition and innovation, which are ever more closely linked. This collaboration is a clear example of the importance of EU efforts to aid SMEs in their green transition, and actively pursues France’s priorities around promoting innovation and sustainable growth.”

“This securitisation transaction with Groupe BPCE underscores our commitment to supporting investments by French SMEs in innovation, digitalisation and projects fostering climate action and environmental sustainability. We are very pleased to support this initiative,” said EIF Chief Executive Marjut Falkstedt.

Additional information about the securitisation investment:

EIF and EIB invested in notes belonging to the same series of senior class A notes issued by the securitisation special purpose entity Ophelia Master SME FCT. These notes rank “pari passu” and benefit from various credit enhancement mechanisms, including subordination of payments of interest and principal due in respect of the class B notes to payments of interest and principal due in respect of the class A notes. All class B notes issued have been retained by Groupe BPCE. The securitisation is established as a long-term revolving note issuance programme, which would allow for future issuance of additional series of class A notes and of additional class B notes, subject to certain criteria and conditions.