EIB and BNP Paribas Fortis renew their cooperation with EUR 250m loan for Belgian SMEs and midcaps
The European Investment Bank (EIB) and BNP Paribas Fortis have signed a new partnership agreement concerning a EUR 250m loan for small and medium-sized enterprises (SMEs) and midcaps.
In line with previous operations, the branches of the BNP Paribas Fortis network will be responsible for on-lending the EIB funds in the form of loans and/or leasing facilities to the self-employed, professionals, SMEs and midcaps, thereby providing them with access to a low-cost source of finance for their capital projects.
With its "Loans for SMEs and midcaps" programme the EIB, the European Union's financing institution, intends to support the economic development and competitiveness of small businesses. To that end it works in collaboration with commercial banks, which act as intermediaries and use their branch networks and knowledge of SMEs and midcaps.
This type of operation takes the form of a credit line that BNP Paribas Fortis will use for the benefit of businesses with fewer than 250 employees across a wide range of economic sectors eligible for EIB financing. The new agreement signed with BNP Paribas Fortis extends this facility to medium-sized companies (midcaps) with 250 to 3 000 employees.
The projects financed must be carried out within the European Union and may not exceed EUR 25m per project. Refinancing operations and purely financial or real estate transactions are excluded. The new "EIB loans for SMEs and midcaps" formula is flexible and transparent. It will ensure that the beneficiary companies benefit from the advantages of EIB funding, mainly in the form of lower interest rates, and they will be explicitly informed of this.
The new EIB–BNP Paribas Fortis loan will take over from the earlier facilities, which totalled EUR 450m and were signed in 2009, 2010 and 2011, but have now been fully used.
Max Jadot, CEO of BNP Paribas Fortis, commented: "It is essential for businesses to have access to funds that will enable them to finance their investments and seize new opportunities. We are glad that the European Investment Bank has enabled us once again to support our SME customers. The loans granted since 2009 have been very successful with entrepreneurs in Belgium. A total of more than 1 700 businesses in all sectors – services and industry – were able to benefit from them, on very favourable terms. These loans are fully consistent with our remit as a banker, which is to finance the Belgian economy by supporting its businesses and its public sector."
EIB Vice-President Pim van Ballekom continued: “We are pleased to be launching this new operation with BNP Paribas Fortis. We will thus be able to continue to provide Belgian entrepreneurs with the favourable EIB terms to finance their projects. Since the start of the crisis we have stood shoulder to shoulder with SMEs and will continue to support them, as their development is crucial for a return to growth. They will spearhead the creation of jobs. Supporting them continues to be a priority for the bank of the European Union."
Since the beginning of 2014 loans disbursed by the EIB for SMEs and midcaps in the EU and its partner countries amount to EUR 12.1bn. Over the first eight months of the year new signatures – in 20 countries and with 88 banking partners – totalled EUR 12.9bn. This support is considerable and ensures that entrepreneurs will have funds available and that finance will continue to be provided for their projects.
Press contacts:
EIB
Sabine Parisse: +352 4379 83340 or +352 621 45 91 59, s.parisse@eib.org
Press Office: +352 4379 21000 – press@eib.org
BNP Paribas Fortis
Hilde Junius: +32 2 565 47 37, +32 478 88 29 60, hilde.junius@bnpparibasfortis.com
Background information
The European Investment Bank (www.eib.org) is the long-term financing institution of the European Union (EU). Its shareholders are the Member States of the EU. The EIB provides long-term finance in support of quality projects to contribute to the achievement of the EU’s key objectives. For further information see www.eib.org, in particular www.eib.org/sme
BNP Paribas Fortis (www.bnpparibasfortis.com) markets a full range of financial services on the Belgian market for private customers, the self-employed, professionals, businesses and public organisations. In the insurance sector BNP Paribas Fortis operates in close cooperation with AG Insurance, the biggest insurance company in Belgium. At the international level, the bank provides bespoke solutions for high net worth individuals, large corporates and public and financial institutions, relying on BNP Paribas's expertise and international network.
BNP Paribas (www.bnpparibas.com) operates in nearly 75 countries and employs 180 000 people, including 140 000 in Europe. The group ranks highly in its three core areas of activity: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe the Group has four domestic markets (Belgium, France, Italy and Luxembourg), and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is also rolling out its integrated retail banking model across the Mediterranean countries and in Turkey and Eastern Europe and has a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys leading positions in Europe, a strong presence in the Americas and a solid and fast-growing network in the Asia/Pacific region.
