CIA ENERGY EFFICIENCY INVESTMENTS-GREEN LOAN

The framework loan will support energy efficiency investments in CONAD supermarkets and retail stores of CIA - Cooperativa Commercianti Indipendenti Associati, located in northern and central Italy. More specifically, the project includes renovating buildings, installing integrated photovoltaic systems, and upgrading refrigeration systems to more efficient models.

The aim is to support the promoter in reinforcing its operational sustainability, improving energy performance in retail stores and reducing energy consumptions, mainly through building renovations, photovoltaic system installations, and energy efficiency measures in refrigeration systems. The project will contribute to climate action mitigation by reducing greenhouse gas emissions.

This operation aligns with both the EU's and the Bank's energy sector priorities, as well as the Bank's climate action goals. It supports investments in energy efficiency across retail stores in Italy, including building renovations, replacement of food refrigeration systems, and the integration of renewable energy solutions. The operation also adheres to the core principles of the "REPowerEU" Action Plan, contributing to the EU's clean energy transition and enhancing Europe's energy independence.

The EIB's support addresses market failures associated with the small scale of energy efficiency (EE) interventions in SMEs and Midcaps, as well as the non-internalised positive externalities of energy savings?such as reductions in carbon emissions and air pollution. By enabling the aggregation of small-scale EE projects, the operation delivers both financial and economic benefits. These include lower operating (energy) costs, increased revenues through enhanced competitiveness and productivity, improved energy supply security, and environmental improvements through reduced CO? emissions and air pollution.

Additionally, the energy efficiency projects will stimulate economic growth in the regions involved, with approximately 12% of the investment directed toward EIB-designated "Cohesion Regions." Through this operation, the EIB provides tangible added value by supporting the implementation of the Promoter's sustainability strategy and targets. This is achieved by facilitating access to EE investments with lower funding costs, longer tenors, and more flexible disbursement mechanisms.

The operation is considered both financially viable and economically justified, with the Financial Rate of Return (FIRR) and Economic Rate of Return (ERR) aligning with the expected profitability benchmarks of the relevant sectors. The Promoter is deemed capable of ensuring effective project execution and managing the deployment of proven technologies with limited technological risk, supported by dedicated project implementation structures.

The Bank's ability to extend a sizeable loan from one single source, with the attractive tenor, flexible utilisation conditions and disbursement period, are substantially relevant to the Promoter and considered suitable for this multi-year investment programmes. The EIB loan will further contribute to the diversification of the Promoter's financing sources from commercial sources. The signalling effect of receiving financing from EIB is perceived positively by the Promoter.

The operation will contribute to climate action mitigation objectives through energy efficiency and renewable energy generation, reducing CO2 emissions and air pollution, supporting the implementation of the " Energy Efficiency Directive (EED)" EU 2023/1791 and the EU "Energy Performance of Buildings Directive (EPBD)" EU 2010/31, as recast by Directive EU 2024/127. The investments are expected to be implemented in existing buildings and (if any) only minor negative temporary environmental impacts (noise, dust) might be expected, which are expected to be mitigated by proper works management. Therefore, due to the type and scope of the investments, it is expected that none of the projects will require an Environmental Impact Assessment (EIA) under the EIA Directive 2011/92/EU (as amended by Directive 2014/52/EU). The EIB will nevertheless review during the project appraisal whether any of the investments could fall under Annex II of EIA Directive, as well as the compliance with applicable EU environmental legislation.

As a private company the promoter is not subject to EU rules on public procurement or concessions.