EIB Group and Deutsche Leasing Romania unlock 370 million Euro for private sector financing

The first cooperation between the EIB Group and Deutsche Leasing Romania will help to strengthen investment by Romanian companies active in sectors affected by COVID-19. The new cooperation between the European Investment Bank, European Investment Fund and Deutsche Leasing Romania will enable local companies across Romania to benefit from EUR 370 million of additional leasing finance.

The EIB Group support is backed by a guarantee from the European Fund for Strategic Investment (EFSI).

The new initiative will enhance the resilience of Romanian business to the economic, social and health impact of COVID-19 and is part of the EIB Group’s private sector response to the pandemic.

“Deutsche Leasing is present in Romania for more than 12 years and in this period has been the preferred financing partner of the local SMEs for equipment investments. Due to our specialization in agricultural equipment financing the majority of our borrowers are located in the rural areas and, through leasing and other financing solutions, we have brought our contribution to the development of these areas. The cooperation with such strong partners as the European Investment Bank and  European Investment Fund further strengthen Deutsche Leasing Romania’s capability to support local business investments effectively, even in this difficult times”, said Laurentiu Zaharia, General Manager of Deutsche Leasing Romania.

“This high-impact securitisation transaction demonstrates the European Investment Bank Group’s commitment to ensuring that investment by SMEs across Europe can continue during challenging times. Innovative cooperation between European financial institutions and leasing local partners will help Romanian companies overcome COVID-19.” said Christian Kettel Thomsen, European Investment Bank Vice President responsible for Romania.

“The European Investment Fund is pleased to partner with Deutsche Leasing Romania for the first time. Together we will help to accelerate and scale up support for investment by hundreds of businesses across Romania.” said Alain Godard, CEO of the European Investment Fund.

European Commissioner for the Economy, Paolo Gentiloni, said: “Supported by the Investment Plan for Europe, this agreement between the EIB Group and Deutsche Leasing will make additional leasing financing available to local businesses in Romania. This will particularly help SMEs situated in rural areas to finance specialised equipment they need for their operations, and thus help sustain economic development and jobs in this difficult period.”

This is the first synthetic securitisation transaction in Romania and enables the EIB Group to provide an alternative instrument for capital management for a financial services partner in the country. 

Securitisation will allow both regulatory capital relief and additional financing capacity for Deutsche Leasing Romania to support local business investment.