Norton Rose Fulbright advises European Investment Bank on retrocession and undertaking agreement

Global law firm Norton Rose Fulbright has advised the European Investment Bank (EIB) in connection with a retrocession and undertaking agreement with UniCredit Bank for up to €150 million.

The transaction was one of the first in Germany to be supported by the European Guarantee Fund (EGF), which aims to support small and medium-sized enterprises (SMEs). The European Investment Fund (EIF) and the EIB (EIB Group) are guaranteeing the first loss piece tranche of a synthetic securitization of a portfolio of loans originated by UniCredit Bank. This is intended to facilitate SME’s access to finance and mitigate the negative economic impact of the COVID-19 pandemic.

The EGF is designed to support companies that are considered to have economic viability and would be able to meet the requirements of a lender or other financial intermediary for commercial financing.

The Norton Rose Fulbright team was led by Hamburg banking partner Veit Sahlfeld. He was supported by senior associate Dr. Michael-Alexander Volks and associate Marvin Nimoh. Norton Rose Fulbright regularly advises the EIB on financing issues. 

The project was led from the legal side at the EIB by Dr. Björn Bronger, Counsel of the EIB. UniCredit Bank was advised by Clifford Chance and the EIF was advised by Linklaters.