A joint effort between ABN AMRO and the European Investment Bank Group has generated a new financial agreement aimed at bolstering business loans within the Netherlands. The collaboration intends to facilitate fresh lending and support environmentally sustainable projects, providing additional resources for small and medium-sized enterprises while addressing evolving market needs with a solid backing from both institutions.
Reports from various sources reveal that similar partnerships have been instrumental in reinforcing local economies. Earlier coverage emphasized substantial EIB contributions to Dutch projects, and this arrangement continues that practice by offering risk-sharing benefits and targeted financing solutions. Multiple publications note that previous deals have focused on providing capital to SMEs, a trend maintained in the current agreement.
Risk-sharing Agreement Details
The arrangement is a synthetic securitisation agreement, worth €1.2B, designed to release new capital for Dutch businesses. A proportion of the funds will go toward enterprises and initiatives that emphasize environmental sustainability.
Dan Dorner, Chief Commercial Officer of Corporate Banking at ABN AMRO, stated, “We have a strategic goal to support SMEs and Mid-Caps. We are therefore delighted once again to be in a position to offer EIB financing to our clients.”
Funding under this deal is structured to prioritize both economic and environmental objectives.
Enhanced Lending for SMEs
The financing structure involves the European Investment Fund assuming risk on a €150M mezzanine tranche and an €835M senior tranche, with part of the exposure counter-guaranteed by the EIB, while ABN AMRO retains the junior tranche. The design incorporates a three-year revolving period with pro-rata amortisation subject to performance triggers.
Robert de Groot, Vice President of the EIB Group, commented, “We are proud to close this landmark deal, which is the largest securitisation transaction in EIB Group history. It is also our first collaboration of this kind with ABN AMRO, leveraging on the strong relationship between both banks. This partnership will significantly enhance the availability of financing for SMEs and Mid-Caps in the Netherlands, driving economic growth and job creation.”
This structure aims to maintain a balance between risk-sharing and capital availability for expanding loan portfolios.
The agreement underscores ongoing efforts by both institutions to support SME growth and sustainable initiatives in the region. By liberating capital through innovative financial structuring, the deal may serve as a practical model for other markets seeking similar risk-management solutions while addressing key economic and environmental challenges.
