- The loans granted on favourable terms will be for up to 12 years in support of sustainable projects to be carried out in Italy and other EU countries.
- The EIB credit line will be available for 24 months and will enable CDP to support companies via medium and long-term loans and the underwriting of bonds and basket bonds.
- In the last three years, EIB and CDP have signed 14 operations worth over €4 billion to help the Italian economy grow via medium to long-term loans and guarantee instruments.
The purpose of the agreement signed at the headquarters of Cassa Depositi e Prestiti (CDP) by CDP’s Chief Financial Officer Fabio Massoli and the European Investment Bank (EIB)’s Director of Operations in Italy Gilles Badot is to provide €400 million of new finance for investments in research, development, innovation and green transition by small and medium-sized enterprises (SMEs) and Italian mid-caps, to be carried out both in Italy and in other EU countries.
The new financing forms part of a broader joint operation between the EIB and CDP totalling €500 million, divided into two tranches: the first €400 million announced today and a second tranche of €100 million that will be allocated once the first amount has been exhausted.
The financing provided will be used to stimulate investment and mobilise new funds for companies. The funds granted by the EIB which, thanks to its triple A rating enjoys better funding conditions on international markets in terms of interest rates, enable CDP to offer companies loans on favourable terms with a maximum maturity of up to 12 years. The EIB’s credit line will have a 24-month availability period.
Cassa Depositi e Prestiti will thus be able to support Italian companies via:
- the provision of medium and long-term financing;
- the underwriting of bonds issued by the companies themselves on the capital market;
- the subscription of asset-backed securities[1], with underlying mini-bonds issued by the beneficiary companies (basket bonds).
In the last three years, the EIB and CDP have signed 14 operations worth over €4 billion, making a significant impact in Italy. Under these agreements, the two institutions have helped facilitate access to credit on favourable terms for hundreds of thousands of small and medium businesses, including through innovative instruments such as basket bonds; support green investments by public and local authorities; build major infrastructure; and carry out public and private reconstruction works in areas struck by disasters.
Background information
The European Investment Bank (EIB) finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2022, the EIB Group provided €45 billion in financing for projects in Italy.
Cassa Depositi e Prestiti (CDP) is the national promotional institution that has supported the Italian economy since 1850. It is committed to accelerating the industrial and infrastructure development of the country in order to contribute to its economic and social growth. CDP’s core activity promotes sustainable regional development as well as the growth and innovation of Italian companies, including internationally. It partners with local authorities, providing funding and advisory services to build infrastructure and improve public utility services. It is also active in the field of international cooperation to implement projects in developing countries and emerging markets. Cassa Depositi e Prestiti is financed from entirely private resources via postal savings bonds and passbooks and through issues on the national and international financial markets.
[1] Securities issued by securitisation special purpose vehicles established pursuant to Law No 130/1999.