Luxembourg / Frankfurt am Main, 18.08.2022 – The European Investment Bank (EIB) and Landesbank Baden-Württemberg (LBBW) are jointly supporting small and medium-sized enterprises. With another guarantee, the EIB is relieving LBBW's capital so that it can continue to grant loans to small and medium-sized enterprises. The structure of this guarantee marks a first: for the first time, an asset-backed securities transaction under the European Guarantee Fund (EGF) took place in Germany. The cross-border transaction was accompanied by the banking team of Luther Rechtsanwaltsgesellschaft.
In its effort to promote the provision of financing to small and medium-sized enterprises, the EIB, together with its subsidiary, the European Investment Fund (EIF), has supported LBBW with a first loss guarantee covered by the European Guarantee Fund (EGF). This enables LBBW to increase financing for small and medium-sized enterprises, mainly in Germany but also in other European Member States.
In cooperation between the Frankfurt and Luxembourg offices, Luther provided comprehensive advice to the EIB in Germany and Luxembourg on various aspects of the guarantee documentation.
About the EIB:
The European Investment Bank (EIB) is the long-term lending institution of the European Union. Its shareholders are the EU Member States. The EIB lends long-term funds for sound projects that meet EU objectives.
About the EIF:
The European Investment Fund (EIF) is part of the EIB Group. Its main task is to facilitate access to finance for Europe's micro, small and medium-sized enterprises. To this end, the EIF uses various instruments, ranging from venture and growth capital to guarantees and microfinance, which are specifically tailored to this market segment.
Landesbank Baden-Württemberg (LBBW) is a universal bank for small and medium-sized enterprises and at the same time the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. With total assets of €276 billion and 10,000 employees (as of 31 December 2020), LBBW is one of the largest banks in Germany. Its core activities are the corporate customer business - especially with medium-sized companies - and the business with private customers as well as with the savings banks. Another focus is on real estate and project financing as well as on the customer-oriented capital market business with banks, savings banks and institutional investors.
On behalf of the EIB:
Inhouse: Dr Björn Bronger, Counsel
Luther, Capital Markets, Banking & Finance: Christoph Schauenburg, LL.M., and Bob Scharfe (both Lead Partners), Marion Lanne (Senior Associate), Stefan Jokel (Senior Associate), Maeva N'Zhogo (Associate)
Luther, Corporate / M&A: Dr Christoph von Burgsdorff, LL.M. (Partner)
On behalf of the LBBW:
On behalf of the EIF:
Allen & Overy LLP