Enhanced co-operation to support SME securitisation in Europe
ENSI is a cooperation and risk sharing platform between the European Investment Fund (EIF) and several National Promotional Institutions (NPIs) – and more generally, economic development institutions in the EU – to encourage SME lending via the capital markets. The ENSI partner institutions are EIF, part of the EIB Group, bpifrance (FR), British Business Bank (BBB, UK), Cassa Depositi e Prestiti (CDP, IT), Kreditanstalt für Wiederaufbau (KfW, DE), Instituição Financeira de Desenvolvimento (IFD, PT), Instituto de Credito Oficial (ICO, ES) and Malta Development Bank Working Group (MT).
The objective of this joint cooperation in SME Securitisation transactions is to stimulate the availability of finance to SMEs in Europe by revitalizing the SME Securitisation market while catalysing resources from the private sector. This reflects the spirit of the European Fund for Strategic Investments (EFSI) aiming to achieve a much wider outreach in support of SMEs.
The working group defines standard procedures and minimum criteria under which the respective National Promotional Institutions (NPIs) are generally willing to participate in securitisation transactions. Furthermore, the working group liaises with the European Commission to discuss deployment options for funds out of the EFSI for the purpose of securitisation transactions.
Eligible originators are financial institutions duly authorised to carry out SME lending or leasing activities according to the applicable legislation, established and operating in one or several of the EU Member States. The selected financial institution will be required to build a new portfolio of SME loans, leasing or guarantees commensurate to the involvement of the participating ENSI partner institutions. The financial institution shall also provide information on the securitised portfolio and on any of the agreed additional lending to the participating ENSI partner institutions.
For financial institutions:
If you are eligible according to the criteria outlined above, you can contact EIF or any other of the ENSI Partner Institutions above (see ENSI leaflet for contact details) for support in a SME securitisation transaction that corresponds to the guidelines of the ENSI indicative term sheet.
EIF or any other ENSI partner institution will explore potential joint support measures to provide you with a solution that fits your funding and/or capital needs. Each participating ENSI partner institution will contribute either by investing in a tranche or by providing a guarantee, according to their specific mandate and ‘risk appetite’.