Coop Pank completes first synthetic securitisation with EIB Group
Coop Pank AS (“Coop”) has yesterday, 15th of December 2025, entered into its first synthetic securitisation transaction with the EIB Group, consisting of the European Investment Fund (“EIF”) and the European Investment Bank (“EIB”), aimed at supporting new lending to small and medium sized companies in Estonia with special focus on gender equality and environmental sustainability.
Under this transaction, EIF will guarantee the portfolio in the amount of EUR 200 million of loans and leases (issued by Coop Pank AS and its subsidiary Coop Liising AS). The financial guarantee in the amount of EUR 197 million issued by the EIF provides protection on the senior tranche (worth EUR 171 million) and mezzanine tranche (worth EUR 26 million) of the securitised portfolio. The EIF’s mezzanine tranche exposure as well as part of the EIF’s senior tranche exposure is in turn counter-guaranteed by the EIB. The junior (i.e. the first loss) tranche amounts to around EUR 3 million and is fully retained by Coop.
Thanks to this synthetic securitisation transaction Coop will benefit from a capital relief which will enable Coop group, as part of its commitment under the transaction documents, to issue EUR 249 million of new loans and leases to small and medium-sized enterprises (SMEs) and Mid-Caps during period until the end of 2028.
Under this synthetic securitisation transaction the agreements will support new lending to Estonian SMEs and Mid-Caps, of which at least EUR 49 million will be allocated to projects fostering gender equality in Estonia and at least EUR 17 million will be allocated to projects aligned with criteria for climate action and environmental sustainability, highlighting the commitment of Coop Pank and the EIB Group to support the transition to a low-carbon economy.
Comment by Paavo Truu, Member of the Management Board and CFO of Coop Pank:
“This transaction – a synthetic securitisation – marks a significant milestone for Coop Pank, enabling the bank to provide more affordable financing to Estonian companies through an innovative financial instrument. Together with the European Investment Bank and the European Investment Fund, we have laid a strong foundation for the sustainable growth of Estonian businesses.
As a result of this cooperation, Coop Pank will be able to offer up to €249 million in new financing to small and medium-sized enterprises (SMEs) in Estonia, helping to further support and strengthen life and business across all regions of the country. A portion of the new loans will be directed towards promoting gender equality and environmental sustainability, in line with the objectives of the financing agreement and Coop Pank’s core values”
Comment by Karl Nehammer, EIB Vice-President:
“This milestone agreement with Coop Pank shows how innovative financial instruments can unlock substantial funding for SMEs while advancing gender equality and sustainability goals. Together, we are helping Estonian businesses grow and supporting the transition to a greener, more inclusive economy.”
Comment by Marjut Falkstedt, EIF Chief Executive:
“This transaction strengthens the local banking sector, injects new funding into the Estonian economy and supports projects that matter for society – from gender equality to climate action. It is a great example of how the EIF and the EIB can leverage innovative structures to deliver impact.“
Background information
Coop Pank AS, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking has reached 225,800. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The bank’s strategic owner is Coop Eesti, a domestic retail chain with a network of 320 stores across the country.
The EIB is an institution of the European Union providing long-term financing for sound projects that pursue the bloc’s shared priorities. The EIB’s shareholders are the 27 member states. Its involvement increases economic competitiveness, spurs innovation, promotes sustainable development, enhances social and territorial cohesion, and supports a swift and fair transition to climate neutrality.
The EIF is part of the EIB Group. It supports Europe’s micro, small and medium-sized enterprises by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF was established in 1994 and is active in all EU countries, prospective member countries, Liechtenstein and Norway. The majority shareholder of EIF is EIB and other shareholders include the European Commission and a range of European financial institutions.
Additional information:
Paavo Truu
CFO
Phone:
E-mail:
