The EBRD on Wednesday announced its participation, as an investor, in a landmark securitization transaction in Greece, namely, in a portfolio containing SMEs loans.
In a press release, the EBRD notes:
“In the first asset-backed securitisation (ABS) transaction issued by a non-bank originator in Greece, the EBRD, the European Investment Bank (EIB), the European Investment Fund (EIF) and Kreditanstalt für Wiederaufbau (KfW) are investing in a securitisation transaction for small and medium-sized enterprises (SMEs) originated by AutoHellas S.A.
AutoHellas is one of the largest car rental companies in Greece and the biggest franchise of Hertz International, the US car rental company, globally by fleet size. The company is engaged in vehicle renting as well as in long term leasing and fleet management services.
Supporting the capital market development in Greece, the EBRD is investing €15 million, the EIB is investing €32.3 million and KfW is investing a total of €25 million, the latter benefiting from a first demand guarantee issued by the EIF.
This joint investment, rated B+(sf) and BBB-SF by Standard & Poor’s and Scope respectively, will furnish AutoHellas with medium-term liquidity which will be used to provide new leases to Greek SMEs over the coming years.
The transaction was arranged by StormHarbour Securities LLP.
The operation is part of the ENSI initiative, a cooperation and risk-sharing platform between the EIF and several National Promotional Institutions (NPIs) and economic development institutions, including the EBRD, to encourage lending to small, medium and micro enterprises via the capital markets.
The EBRD started investing in Greece on a temporary basis in 2015 to support the country’s economic recovery. The Bank’s priorities there include strengthening private companies and the financial sector, as well as supporting privatisation, infrastructure development and regional integration of the Greek economy. To date, the EBRD has invested over €1.7 billion in more than 30 projects in Greece.”
