On 25 February 2026, Bigbank AS (“Bigbank”) signed its first synthetic securitisation transaction with the EIB Group, consisting of the European Investment Bank (“EIB”) and the European Investment Fund (“EIF”) The transaction aims to support new lending to small and medium-sized enterprises (“SMEs”) and mid-caps in Estonia, Latvia and Lithuania, with a particular focus on micro-enterprises, early-stage companies and environmental sustainability.
Under the transaction, the EIF provides Bigbank with a financial guarantee covering a reference portfolio of over 210 million euros, consisting of loans, credit lines and leases originated in the three Baltic States and Finland. More specifically, the guarantee offers credit risk protection for the senior tranche of 184 million euros and the mezzanine tranche of 23 million euros. The EIF’s exposure to the mezzanine tranche, as well as part of its exposure to the senior tranche, is in turn counter‑guaranteed by the EIB. The junior tranche of the reference portfolio, amounting to approximately 3 million euros, is fully retained by Bigbank.
The transaction will result in a reduction in Bigbank’s regulatory capital requirements. In accordance with the undertakings set out in the transaction documentation, Bigbank plans to redeploy the released capital by originating approximately 254 million euros of additional financing to SMEs and mid‑caps over the next three years.
Comment by Argo Kiltsmann, CFO of Bigbank:
“This first synthetic securitisation transaction is an important milestone for Bigbank. It helps to finance small and medium-sized enterprises in all the Baltic countries with better pricing terms in the total amount up to 254 million euros. Together with the European Investment Bank Group we are helping Estonian, Latvian and Lithuanian businesses to grow and fulfil their plans which need affordable financing.”
Comment by Marjut Falkstedt, Chief Executive of EIF:
“This first synthetic securitisation with Bigbank marks an important step in expanding access to finance for businesses across the Baltics. By sharing risk with the bank, our aim is to unlock fresh lending for businesses that form the backbone of local economies. The transaction supports entrepreneurship, strengthens the financial sector, and channels capital in the direction of real economic and social impact.”
Comment by Karl Nehammer, Vice-President of EIB:
“This agreement with Bigbank demonstrates once again how innovative financial tools can strengthen Europe’s economy by directing more financing to microenterprises that need it most. By helping Bigbank free up capital for new lending, we are enabling thousands of Baltic SMEs and mid‑caps to invest, innovate and grow. This way, we are supporting sustainable and inclusive economic development across the region.”
Background information
Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 January 2026, the bank's total assets amounted to 3.4 billion euros, with equity of 303 million euros. Operating in nine countries, the bank serves over 190,000 active customers and employs more than 650 people. The credit rating agency Moody's has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2.
The EIB Group
The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed 100 billion euros of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
Additional information:
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee
EIB Group: Kristiina Randmaa, email: k.randmaa@ext.eib.org ; telephone: +352 4379 72894
Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org
