Raiffeisen Bank concludes a synthetic securitization transaction with the European Investment Bank Group, through which it will support the increase in access to financing for small and medium-sized companies, as well as those with medium capitalization in Romania, the bank announced, according to Agerpres.

Raiffeisen Bank mentions that it is the first bank in Romania to strengthen its financing capacity through a synthetic securitization. The new partnership with the European Investment Bank (EIB) and the European Investment Fund (EIF) will contribute to increasing access to financing and will strengthen the resilience of small and medium-sized companies (SMEs) as well as those with medium capitalization (MidCaps) in Romania.

„We are happy to announce this innovative transaction with our long-term partner, the EIB Group. This partnership allows us to increase access to financing for SMEs and MidCaps in Romania. Thus, we will support their growth and development in an environment economically difficult, marked by the negative effects of the COVID pandemic, the military conflicts in Ukraine and the energy crisis. At Raiffeisen Bank, we are dedicated to promoting economic growth and supporting the success of our clients. We believe that this partnership will be an important step in achieving these goals,” said Alina Rus, Raiffeisen Bank CFO.

The synthetic securitization transaction is structured on a portfolio of non-retail loans, worth 1.520 billion lei (308 million euros).

„Synthetic securitizations are an important tool for efficient capital management and help to increase the financing capacity through risk transfer, especially in the current market context, characterized by increased uncertainty and high risk premiums. The securitization structure allows the bank to release the most of the volume of own funds and eligible debts allocated to the securitized portfolio and thus strengthen its ability to finance the Romanian economy. At the consolidated prudential level of Raiffeisen Bank the transaction will have an initial positive impact of approximately 40 basis points on the level 1 own funds rate and respectively 80 basis points on the MREL rate”, said Romulus Mircea, executive director of Assets and Liabilities Management.

Raiffeisen Bank Romania, a universal bank, has been active on the Romanian banking market for 25 years and serves more than 2.3 million clients, individuals and legal entities. The bank has 4900 employees, 295 units, 1131 ATM&MFMs and 27,000 POS devices.

Agerpres