EIB Group and Groupe BPCE Partner to Boost Innovation and Renewable Energy for SMEs and Mid-Caps

The partnership between the EIB Group and Groupe BPCE reflects a long-standing collaboration aimed at bolstering investments in French firms.

The European Investment Bank (EIB) Group, which includes the European Investment Bank (EIB) and the European Investment Fund (EIF), has joined forces with Groupe BPCE to launch two significant financing initiatives exceeding €1 billion aimed at promoting innovation, research, and energy transition projects spearheaded by small businesses and mid-cap companies. The agreement encompasses two key actions:

Securitisation of an €800 Million Loan Portfolio: This initiative is set to generate a total of €1.6 billion in financing for small and medium-sized enterprises (SMEs) and mid-caps. The EIB will contribute €750 million, while the EIF will invest €50 million into this securitisation operation, which focuses on enhancing innovation and energy transition activities.

Allocation of €250 Million for Renewable Energy Projects: The Banques Populaires and Caisses d’Epargne will channel this funding towards SME and mid-cap projects targeting renewable energy solutions, including solar photovoltaics, onshore wind, biomass, and biogas production from agricultural waste.

The partnership between the EIB Group and Groupe BPCE reflects a long-standing collaboration aimed at bolstering investments in French firms. This latest initiative underscores their shared commitment to assisting SMEs and mid-caps in financing essential innovation and energy transition projects that align with sustainable and lower-carbon growth models.

EIB Vice-President Ambroise Fayolle remarked on the partnership's significance, noting, “The EIB Group and Groupe BPCE are continuing and expanding their partnership to meet the investment needs of French companies while promoting the energy transition and innovation, which are ever more closely linked.” He further emphasized that this collaboration exemplifies the EU's dedication to supporting SMEs in their green transition.

Supporting European Competitiveness

The securitisation approach adopted in this initiative is aligned with the EIB's priority to develop a European savings and investment union, as highlighted in a recent report by Mario Draghi on enhancing European competitiveness. This strategic focus not only addresses the pressing investment needs of SMEs but also supports broader EU energy goals and efforts to combat climate change.

Hélène Madar, Head of Retail Banking and Insurance at Banque Populaire and Caisse d’Epargne, expressed enthusiasm for the financing initiatives, stating, “These initiatives will enable the Banques Populaires and Caisses d’Epargne to accelerate the funding of their customers’ investment needs in key areas of the energy transition and innovation.”

Jérôme Terpereau, Head of Finance at Groupe BPCE, highlighted the operation's importance, noting, “This major joint operation with the EIB Group showcases Groupe BPCE’s financing and securitisation expertise. It will meet the growing needs of our customers, key for competitiveness and sustainable growth.”

Marjut Falkstedt, EIF Chief Executive, reaffirmed the importance of the collaboration, stating, “This securitisation transaction underscores our commitment to supporting investments by French SMEs in innovation, digitalisation, and projects fostering climate action and environmental sustainability.”

With these initiatives, the EIB Group and Groupe BPCE are taking substantial steps to ensure that small businesses and mid-cap companies can thrive in the evolving landscape of innovation and sustainability. This partnership not only fosters economic growth in France but also aligns with the EU’s strategic objectives for a greener and more innovative future.