White & Case advises EIF and EIB on synthetic securitisation of EFL-originated leasing receivables portfolio

Global law firm White & Case LLP has advised the European Investment Fund (EIF) and the European Investment Bank (EIB) on a revolving synthetic securitisation with Europejski Fundusz Leasingowy S.A. (EFL) for a PLN 2 billion portfolio of leasing receivables.

"To support new lending capacity to SMEs, EIF and EIB made securitisation investments of more than €3 billion during 2023, over 55 percent of which were focused on Central & Eastern Europe," said White & Case partner Ingrid York, who co-led the Firm's deal team. "The EFL deal is one of several transactions on which we have advised EIF and EIB recently."

The transaction is expected to support entrepreneurship, job creation and economic growth in Poland. The EIF guarantee on the mezzanine and senior tranches covers a reference portfolio of approximately PLN 2 billion. Half of the EIF's exposure to the senior tranche and 100 percent of its exposure to the mezzanine tranche is in turn counter-guaranteed by the EIB and enables the redeployment of EFL's capital to support the economy.

EFL retains the junior tranche and full exposure to a set of selected leases with similar characteristics to the referenced exposures. The transaction features a use-it-or-lose-it synthetic excess spread mechanism, a two-year replenishment period and a pro-rata amortisation of the senior tranche and the mezzanine tranche, subject to performance triggers.

The White & Case team which advised on the transaction included partners Dennis Heuer (Frankfurt), Ingrid York (London) and Arnaud Cagi-Nicolau (Luxembourg), local partner Claire-Marie Mallad (Frankfurt) and associates Charles Linel (Paris), Reetu Vishwakarma (Frankfurt) and Konstantinos Strakas (Luxembourg).

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