The European Investment Bank (EIB) Group and Deutsche Leasing Romania have agreed to work together to strengthen investment by Romanian companies active in sectors affected by the coronavirus (COVID-19) pandemic. 

Together, the EIB, European Investment Fund and Deutsche Leasing Romania will help Romanian companies to benefit from €370mn of additional leasing finance, the EIB said. The support from the EIB is backed by a guarantee from the European Fund for Strategic Investment (EFSI).

According to the EIB, the project will increase Romanian businesses’ resilience to the pandemic and is the first synthetic securitisation transaction in Romania. 

“Securitisation will allow both regulatory capital relief and additional financing capacity for Deutsche Leasing Romania to support local business investment,” said the press release. 

The sum includes €25mn support for climate action investment.

“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,” said European Commissioner for the Economy Paolo Gentiloni. 

“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 co-operation between European financial institutions and leasing local partners will help Romanian companies overcome COVID-19.” said the EIB’s vice-president responsible for Romania, Christian Kettel Thomsen.