Investment & Fund Management

The European Investment Fund (EIF) and KfW collaborated on a securitisation transaction that involved the purchase of EUR 49 million in mezzanine and EUR 90 million in senior notes. This transaction was specifically designed to support the abcfinance group in Cologne, which provides leases to German SMEs. The initiative falls under the ENSI (EIF-NPIs Securitisation Initiative), a platform aimed at enhancing SMEs' access to credit through cooperation between EIF and National Promotional Institutions (NPIs).

The tailored solution provided by EIF and KfW enabled abcfinance group to secure long-term funding, which is intended to be reinvested into new leases for German SMEs over the next two years. This strategic partnership not only facilitates immediate financial support but also aims to stimulate economic growth by ensuring that SMEs have the necessary resources to thrive. In the previous year, EIF committed approximately EUR 1 billion to various securitisation transactions, highlighting its ongoing commitment to supporting SMEs through innovative financial instruments. KfW also demonstrated its dedication to SME funding, having invested EUR 838 million in securitisation in 2015 alone.

The quantifiable results of this collaboration are significant, as it allows for the continuous flow of capital to SMEs, thereby fostering entrepreneurship and economic development within the region. The initiative exemplifies how targeted financial solutions can effectively address the specific challenges faced by SMEs in accessing credit.