• Public-private partnership expands leasing finance for German businesses and builds on established cooperation to strengthen capital-market-based funding
• Transaction frees up capital on more than 18,000 leasing contracts
• Channels EUR 85 million to female entrepreneurs, cultural and creative sectors, and green investment.
• EIF, KfW and private investors deepen cooperation with abcfinance to widen access to leasing finance for the real economy

The European Investment Fund (EIF) has entered into a public-private partnership with private sector investors and KfW in a German leasing securitisation originated by abcfinance group. The transaction is expected to unlock more than EUR 380 million in new financing for small and medium-sized enterprises (SMEs) across Germany, helping businesses invest in vehicles, machinery and equipment needed to grow and stay competitive.

The initiative will strengthen access to finance in sectors where investment can have strong economic and social impact. Of the new financing volume, EUR 85 million is earmarked for female entrepreneurs, the cultural and creative sectors, and green investment.

"As a leasing company with focus an small and medium sized companies, German “Mittelstand”, this transaction gives us a strong and sustainable financing capacity in a challenging economic environment. In effect, it strengthens our capacity to provide our customers with attractive leasing solutions and enhancing their growth and economic success. The partnership with both EIF and KFW alongside with private investors is a significant step in our strategic development. said Dr. Hubertus Mersmann, Spokesman of the Management Board of abcfinance.

Strengthening EU capital market support for business investment

The new cooperation contributes to the EU’s broader ambition to build a genuine Savings and Investment Union by making it easier for long‑term savings to be channelled into productive investment. By transforming a granular portfolio of SME leases into high‑quality, investable securities, it helps connect institutional and private investors with the financing needs of German businesses. In doing so, it supports the EIB Group’s role in deepening capital markets, diversifying funding sources for the real economy and making the financial system more resilient and efficient for savers and investors.

Under the agreement, EIF will provide a wrap totalling EUR 280 million, helping transform the notes issued into a European Safe ABS and attracting private investors into the transaction. This will enable abcbank to free up capacity for new SME financing while broadening the investor base for German SME-backed assets.

The Germany Fund helping companies to grow

With an investment of EUR 70 million in the EIF-guaranteed Class A1 of the transaction, KfW is implementing a new mandate from the German Federal Ministry for Economic Affairs and Energy.

The investment forms part of the implementation of the Germany Fund (Deutschlandfonds) and is intended to help strengthen capital market-based financing in Germany and Europe through ABS and ABCP transactions.

"By unlocking fresh lending capacity, we're delivering real impact for SMEs and the wider economy.” said Marjut Falkstedt, Chief Executive of the European Investment Fund.

"We are pleased to support the European securitisation market with this investment under our mandate as part of the Germany Fund and thereby contribute to strengthening competitiveness in Germany and Europe. The transaction opens a new chapter in our long-standing and trusted cooperation with the EIF.” said Tim Armbruster, Group Treasurer at KfW.

Improving access to targeted leasing finance in high-impact sectors

Abcfinance, together with abcbank, provides financing solutions for SMEs through leasing, factoring and sales financing, with operations across Germany and additional business in the Netherlands and Austria.

The new transaction securitises a EUR 500 million portfolio of lease assets linked to more than 18,000 lease contracts covering vehicles, machinery and equipment used by German enterprises in their day-to-day operations.

The EIF- guaranteed tranche has been subscribed by KfW and two private sector banks, making the transaction a public-private partnership.

In addition to the guaranteed senior tranche, EIF provides bilateral guarantees to abcbank on the retained mezzanine and junior tranches amounting to EUR 80 million. This protection enables abcbank to achieve significant risk transfer, reduce risk-weighted assets, release regulatory capital and expand its capacity to finance SMEs.