Coop Pank completes first synthetic securitisation with EIB Group
Coop Pank AS ("Coop") has yesterday, 15(th) 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 EUR249
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: +372 5160 231
E-mail: [email protected]
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