The partnership aims to improve access to green asset financing for SMEs and small mid-caps in France, Germany, Italy and Spain.
The European investment fund (EIF) has signed a €200m guarantee agreement with BNP Paribas Leasing Solutions to support European small and medium-sized enterprises (SMEs) in their transition to low-carbon models.
The partnership aims to improve access to green asset financing for SMEs and small mid-caps in France, Germany, Italy and Spain, by providing financial support for investments in projects focused on climate change mitigation and sustainability.
The cooperation between the two parties is backed by the European Commission’s InvestEU programme, which leverages substantial private and public funds in support of a sustainable economy in the EU, with the aim of unlocking at least €372bn in private and public investment using a €26.2bn EU budget guarantee.
The agreement represents EIF’s largest multi-country guarantee for energy transition leasing solutions and it is the first InvestEU-backed guarantee collaboration with BNP Paribas Leasing Solutions..
Low-carbon transition
Commenting on the deal, Ambroise Fayolle, EIB vice-president, said the agreement “fulfils the core mission of both the EIF and the EIB, by accelerating innovation and competitiveness for European SMEs while promoting sustainable economic development through tailored financial solutions”.
Marjut Falkstedt, EIF CEO, said the guarantee underscores the power of joint efforts in strengthening European economies. “By joining forces, the EIF and BNP Paribas Leasing Solutions will inject over €200m in new financing to accelerate innovation and competitiveness among transition to low-carbon models,” said Falkstedt.
Neil Pein, CEO of BNP Paribas Leasing Solutions, added that the deal aligns with their commitment to financially supporting European businesses in order for them to contribute to a more sustainable economy.
Earlier this year, the EIF became a cornerstone investor, with a commitment of €40m, to SevenGen Investment Partner’s growth fund, which plans to invest in profitable companies in north-western Europe that contribute to sustainability but need growth capital to expand, as reported by Impact Investor.
Last year, the EIF also invested €25m in a Nordic green tech fund which will invest in around 20 early stage companies within climate tech, including in the blue economy.
