The European Investment Bank Group, formed by the European Investment Bank (EIB) and European Investment Fund (EIF), have granted Alior Bank a 1.44 billion zloty guarantee (335.3 million euros), on the senior and mezzanine tranches of a 1.5 billion zloty (349 million euros) SME portfolio. This is the first synthetic SME securitisation in which the EIB and EIF are jointly participating in Poland. The agreement was made possible by the support of the European Fund for Strategic Investments (EFSI).
EFSI is the central pillar of the Investment Plan for Europe, known as the Juncker Plan. Its support increases the EIB Group’s capacity to finance investment projects that, in line with the Plan’s criteria, involve activities which by their structure or nature have a higher risk profile but which foster firms’ competitiveness and create jobs.
The agreement aims to foster support for small and medium-sized firms in all sectors of the Polish economy, providing them with loans on favourable terms that enable them to obtain funding with lower interest rates and longer repayment periods.
EIF Chief Executive, Pier Luigi Gilibert said: “The EIF is delighted to be participating in the EIB Group’s first synthetic SME securitisation agreement in Poland to support Polish SMEs. EIF’s experience in mobilising and structuring investment, plus the EIB and the support of the Juncker Plan, will enable Alior Bank to release regulatory capital and enhances the bank’s capacity to provide SME financing on better terms.”
Acting CEO of Alior Bank, Krzysztof Bachta, added: “We are very glad that we managed to close the transaction with EIF and EIB under the Juncker Plan on terms which are favourable to the Bank. The released capital will be utilised to grow the Bank’s key SME segment. This transaction will enable the Alior Bank Group to offer additional lending to small and medium-sized enterprises at improved terms, in the form of reduced interest rate.”
This is the first synthetic SME securitisation in which the EIB and EIF are jointly participating in Poland. The EIB Group has supported 18 securitisation transactions in the last 12 months. This month alone the group will provide guarantees amounting to EUR 1.7 billion to banks in Poland, Italy, Germany and Spain.