The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has signed an agreement with BNP Paribas Leasing Solutions to provide a portfolio guarantee of up to €200 million.
Supported by the InvestEU program, this initiative aims to enhance access to business asset leasing solutions “for SMEs and small mid-caps across France, Germany, Italy, and Spain.”
The partnership aims to accelerate “economic development and environmental sustainability by providing financial support” for investments in:
- Sustainable mobility
- Energy efficiency
- Green technologies
- Renewable energy projects
Ambroise Fayolle, EIB Vice-President said:
“This guarantee agreement with BNP Paribas Leasing Solutions fulfils the core mission of both the European Investment Fund and the European Investment Bank Group: accelerating innovation and competitiveness for European SMEs while promoting sustainable economic development through tailored financial solutions.”
Marjut Falkstedt, EIF CEO, highlighted the partnership’s impact:
“By joining forces, the EIF and BNP Paribas Leasing Solutions will inject over €200 million in new financing to accelerate innovation and competitiveness among European SMEs across four European countries, and supporting companies in their transition to low-carbon models. This significant guarantee underscores the power of joint efforts in strengthening European economies.”
Neil Pein, CEO of BNP Paribas Leasing Solutions, highlighted the strategic importance of the initiative:
“We are proud to be part of this strategic partnership that will provide essential financing to SMEs and small mid-caps. This initiative aligns perfectly with our commitment to empowering European businesses with the financial tools they need to grow, innovate, and contribute to a more sustainable economy.”
This milestone agreement represents “the EIF’s largest multi-country guarantee for energy transition leasing solutions and marks the first InvestEU-backed guarantee collaboration with BNP Paribas Leasing Solutions.”
As noted in the update, the EIF is “part of the European Investment Bank Group.”
It supports Europe’s SMEs by improving their access to finance “through a wide range of selected financial intermediaries such as banks, guarantee and leasing companies, micro-credit providers and private equity funds.”
The EIF designs and offers equity and debt financing instruments fostering EU objectives in “support of entrepreneurship, growth, innovation, research and development, the green and digital transitions, and employment.”
The InvestEU program provides the European Union with “crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth.”
It also helps mobilize private investments for the European Union’s policy priorities, such “as the European Green Deal and the digital transition.”
InvestEU brings together under one roof the “multitude of EU financial instruments, making funding for investment projects in Europe simpler, more efficient and more flexible.”
The InvestEU Fund is implemented through financial partners “that will invest in projects using EU budget guarantee of €26.2 billion.”
That guarantee will back investment projects of “the implementing partners, increase their risk-bearing capacity and thus mobilize at least €372 billion in additional investment.”