- First cooperation unlocks EUR 370 million private sector financing
- SMEs across Romania benefit from cheaper leasing finance
- Initiative increases financing for agriculture and equipment investment
- Majority of borrowers in rural areas and less developed regions
- First synthetic securitisation in Romania supporting financial services
- Supported by the European Fund for Strategic Investment (EFSI), the central pillar of the Investment Plan for Europe
The first cooperation between the EIB Group and Deutsche Leasing Romania will help to strengthen investment by Romanian companies active in sectors affected by COVID-19. The new cooperation between the European Investment Bank, European Investment Fund and Deutsche Leasing Romania will enable local companies across Romania to benefit from EUR 370 million of additional leasing finance, a press release issued by the EIB Group informs.
The EIB Group support is backed by a guarantee from the European Fund for Strategic Investment (EFSI).
The new initiative will enhance the resilience of Romanian business to the economic, social and health impact of COVID-19 and is part of the EIB Group’s private sector response to the pandemic.
“Deutsche Leasing is present in Romania for more than 12 years and in this period has been the preferred financing partner of the local SMEs for equipment investments. Due to our specialization in agricultural equipment financing the majority of our borrowers are located in the rural areas and, through leasing and other financing solutions, we have brought our contribution to the development of these areas. The cooperation with such strong partners as the European Investment Bank and European Investment Fund further strengthen Deutsche Leasing Romania’s capability to support local business investments effectively, even in this difficult times”, said Laurentiu Zaharia, General Manager of Deutsche Leasing Romania.
“This high-impact securitisation transaction demonstrates the European Investment Bank Group’s commitment to ensuring that investment by SMEs across Europe can continue during challenging times. Innovative cooperation between European financial institutions and leasing local partners will help Romanian companies overcome COVID-19.” said Christian Kettel Thomsen, European Investment Bank Vice President responsible for Romania.
“The European Investment Fund is pleased to partner with Deutsche Leasing Romania for the first time. Together we will help to accelerate and scale up support for investment by hundreds of businesses across Romania.” said Alain Godard, CEO of the European Investment Fund.
European Commissioner for the Economy, Paolo Gentiloni, said: “Supported by the Investment Plan for Europe, this agreement between the EIB Group and Deutsche Leasing will make additional leasing financing available to local businesses in Romania. This will particularly help SMEs situated in rural areas to finance specialised equipment they need for their operations, and thus help sustain economic development and jobs in this difficult period.”
This is the first synthetic securitisation transaction in Romania and enables the EIB Group to provide an alternative instrument for capital management for a financial services partner in the country.
Securitisation will allow both regulatory capital relief and additional financing capacity for Deutsche Leasing Romania to support local business investment.
Helping business investment to reduce energy use and cut emissions
The new initiative includes EUR 25 million targeted support for climate action investment.
Ensuring Romania benefits from the Investment Plan for Europe
This new support for local investment by Deutsche Leasing Romania is backed by the European Fund for Strategic Investment (EFSI), the central pillar of the Investment Plan for Europe under which the EIB Group and the European Commission are working together to boost the competitiveness of the European economy.
Increased support for business investment in cohesion regions
The new scheme is part of a wider €2 billion EIB Group Asset-Backed Security financing programme to address the working capital, liquidity needs and investment challenges facing companies across Europe, and exacerbated by the COVID-19 pandemic. This will target support to cohesion regions.
In recent weeks, the EIB Group has enabled increased financing for business investment across Romania in cooperation with leading local financial partners.
More than EUR 185 million of COVID-19 private sector financing will support local companies through new European Investment Bank credit lines with public and private Romanian banks.
Photo: Deutsche Leasing