Linklaters advises the asset manager, Eurotitrisation, in the implementation of the "Relance" Equity Loan Fund
Linklaters has advised Eurotitrisation, asset manager, on the implementation of the "Fonds de Prêts Participatifs Relance (PPR)", the unprecedented financing scheme promoted by the French Ministry of the Economy and Finance through which the main French banks will distribute up to €14 billion of equity loans to eligible French SMEs and SMIs, in order to strengthen their balance sheets weakened by the pandemic in order to promote their development as they emerge from the economic crisis.
This innovative “Relance” Equity Loan Fund involves the six main French banking networks, which have agreed to select the eligible borrowers and originate these equity loans and have committed to retain 10% of such exposure on their balance sheet; 18 French insurers which have agreed, alongside the Caisse des Dépôts et Consignation, to subscribe, on the first round, up to €11 billion of bonds to be issued by the Fund to refinance these loans ; and the French Ministry of the Economy and Finance, the Fund benefiting from a 30% State guarantee. A second round is already planned for June 2021.
The Fund will be managed by Eurotitrisation, selected as the umbrella management company, and assisted by six asset managers delegated in the management of the different pockets of assets, made up of granular loans (below €10 million) or non-granular loans (above €10 million) and allocated according to the identity of the originating banking group, each asset manager being "paired" with one of the intervening banks.
The Linklaters team was led by Agathe Motte, Counsel in the Structured Finance practice.
The Fédération Française de l'Assurance was represented by Gide (Stéphane Puel's team), while the banks were advised by Allen & Overy (Brice Henry and Fabrice Faure-Dauphin's teams).