Further cooperation between KfW and EIF as part of a securitisation transaction for German SME lease receivables at abcfinance GmbH

In an effort to promote the small and medium-sized enterprises (SME) sector, KfW and the European Investment Fund (EIF) have invested in a new securitisation transaction through the acquisition of senior tranches with a collective total of EUR 100 million and mezzanine tranches with a total of EUR 48 million. The transaction, which was structured by Raiffeisen Bank International AG, securitises a portfolio of German SME lease receivables at abcfinance GmbH.

The transaction was completed under ENSI (EIF-NPIs Securitisation Initiative), a joint initia-tive between the EIF and national promotional institutes (NPI) to promote the securitisation market.

The aim of ENSI is to improve the funding options for European SMEs through joint participation in securitisation transactions. Under the ENSI cooperation, which launched at the beginning of 2016, a total of three German, five Italian, one Portuguese and three British transactions have already been concluded.

KfW and the EIF's investment in the senior and mezzanine tranches enables abcfinance GmbH to refinance the securitised lease receivables so that the funds released can be made available for German SMEs again in the next two years.

In 2016, KfW provided SME funding of EUR 1.0 billion via investments in securitisations. Over the same period, EIF was involved in securitisation structures including mezzanine tranches with a volume of EUR 1.6 billion.

European Investment Fund (EIF)