EIB and BNL Gruppo BNP Paribas provide EUR 325 million for Italian SMEs and mid-caps
The European Investment Bank (EIB) has provided BNL Gruppo BNP Paribas with three separate lines of credit totalling EUR 325 million for financing Italian SMEs and mid-caps, including via leasing operations.
EUR 250 million for SMEs and mid-caps: the first contract concerns SMEs and mid-caps to which conventional loans and leasing finance managed by BNL and BNP Paribas Lease Group are provided. At least 70% of the entire operation is reserved for smaller businesses.
EUR 50 million for mid-caps: the second line of credit is for mid-caps and represents the fourth tranche of an operation totalling EUR 300 million approved in 2011 and to be entered into with various Italian credit institutions.
EUR 25 million for Enterprise Networks: an innovative contract is dedicated to loans for Enterprise Networks, the free associations between firms aimed at increasing the competitiveness and innovation of the member businesses. This is a legal person recently introduced under the Italian legal system (contract for Enterprise Networks, Law 33/2009). In this case, BNL is the first financial intermediary identified by the EIB to channel funds to Enterprise Networks. The operation amounts to EUR 100 million and is to be entered into with various Italian credit institutions.
In general, the loans will go to fund either new or uncompleted projects. For SMEs and mid-caps with projects costing less than EUR 25 million, the loans may cover the entire investment (up to EUR 12.5 million per project) and may concern the purchase, construction, extension and restructuring of buildings; the purchase of plant, equipment, vehicles or machinery; project-related expenses, additional charges and intangible fixed assets, including research, development and innovation expenses; and the permanent need for working capital related to operations. The operations are aimed at SMEs and mid-caps operating in all productive sectors: agriculture, crafts, industry, commerce, tourism and services. For mid-caps with investment projects costing between EUR 25 million and EUR 50 million, the EIB loan cannot exceed 50% of the cost of the projects/investments.
The operations form part of the traditional strong working relationship between the EIB and BNL Gruppo BNP Paribas for the financing of Italian businesses under the Framework Agreement entered into three years ago by the EIB, ABI and Confindustria.