- Different classes of securities were underwritten by EIB and EIF
- The additional credit will support the investments and working capital requirements of Italian small businesses and mid-cap companies
In the last few days, UniCredit concluded a new securitisation operation for a portfolio of consumer loans originating from the bank totalling around €850 million.
The senior and mezzanine tranches of the notes (which received ratings from DBRS and Moody’s) issued by the securitisation vehicle were purchased by the European Investment Bank (EIB) for a total value of €700 million and by the European Investment Fund (EIF) for an additional €50 million on the back of UniCredit’s commitment to provide Italian small businesses and mid-caps with an equal amount of additional credit over the next 36 months.
Subsidised loans, with a minimum duration of 24 months, may be used by companies to support investment projects or their own working capital. A share of not less than 30% of the total will be earmarked for initiatives aimed at supporting the adoption by companies of more environmentally sustainable business models.
“Small businesses play a key role in promoting green and innovative investments. Thanks to the excellent relationship between the EIB Group and UniCredit, further consolidated thanks to this operation, small businesses and mid-caps in Italy will be able to benefit from subsidised loans to invest in their future,” said EIB Vice-President and EIF Chair Gelsomina Vigliotti.
“Small businesses are the engine of our economy, and it is our responsibility to help them grow and to support them in the ecological transition process. These new loans demonstrate our continuing commitment to this goal, made even stronger by our long-standing partnership with the EIB Group. These funds can provide concrete support for businesses to continue to effectively serve their customers and the communities in which they operate," added Deputy Head of UniCredit Italia Remo Taricani.
This new operation is part of a framework of collaboration with the EIB Group (EIB and EIF) which, in line with the capital efficiency objectives identified in the “UniCredit Unlocked” plan, has generated in the last year five important securitisation operations that have enabled UniCredit to make additional credit available to companies in the countries where it operates.
In particular, during the summer UniCredit finalised with the EIB Group under the European Guarantee Fund (EGF) three synthetic portfolio securitisation transactions that enabled the UniCredit Group’s banks to make available to companies in Italy, Germany and Bulgaria additional credit.
In November 2021, a first synthetic securitisation transaction was signed on a portfolio of loans on which the EIB Group offered protection for the mezzanine tranche, enabling UniCredit to make available to Italian small businesses new loans totalling €720 million.
All of the mentioned transactions, which saw UniCredit Bank AG act as sole arranger and — regarding securitisation of consumer loans alone, also as sole lead manager — are part of the broader framework of collaboration between UniCredit and the EIB Group, which in 2021-2022 alone served to mobilise financial resources for companies in the countries where UniCredit operates to the tune of over €10 billion.
Background information
European Investment Fund (EIF)
The EIF is part of the European Investment Bank Group. It designs and develops venture and growth capital instruments, guarantees and microfinance, specifically targeting this market segment. It also supports investments in climate and infrastructure funds with a strong focus on climate action and environmental sustainability. Through its activities, the EIF promotes the European Union’s climate action goals as well as supporting innovation, research and development, entrepreneurship, growth and employment.
The Pan-European Guarantee Fund (EGF)
The EGF was established by the EIB Group with contributions from EU Member States to protect companies affected by the COVID-19 crisis. Using almost €25 billion in guarantees, the EGF enables the EIB and its subsidiary the EIF to rapidly make available loans, guarantees, asset-backed securities, equity and other financial instruments mainly to small businesses. The EGF is part of the EU recovery aid package aimed at providing a total of €540 billion to stimulate the components of the EU economy most affected by the crisis. Its goal is to ensure that companies with sustainable business plans can obtain the liquidity needed to overcome the difficulties caused by the pandemic crisis. It is also designed to provide healthy businesses with the support they need to grow.
UniCredit
UniCredit is a pan-European commercial bank with a unique service model in Italy, Germany, Central and Eastern Europe. Its chief objective is to give communities the tools to progress, offering the best to all stakeholders and unlocking the potential of our customers and people across Europe.
We serve over 15 million customers, who are at the heart of what we do in all our markets. UniCredit is organised into four main geographic macro-areas and two product factories: Corporate and Individual Solutions. This enables us to be close to our customers by leveraging the Group’s size to offer a full range of products.
Digitalisation and our commitment to environmental, social and governance (ESG) principles are key factors for the service we provide. They help us ensure excellence for our stakeholders and create a sustainable future for our customers, communities and people.