- First tranche of €35 million signed today, 80% guaranteed by SACE
- At least a quarter of the total funding is for strategic projects and sustainable investments
- EIB and Mediocredito Trentino Alto-Adige also signed an advisory agreement under the Green Gateway programme aimed at increasing the share of green financing
The European Investment Bank (EIB) agreed to lend Mediocredito Trentino-Alto Adige €70 million with the backing of insurer SACE to support environmentally sustainable investments by companies in Italy as well as their working capital. An initial tranche of €35 million, 80% guaranteed by SACE, was signed today.
The EIB loan will enable Mediocredito Trentino-Alto Adige to offer companies additional funding on favourable terms. That in turn will facilitate the companies’ access to long-term financing with more competitive interest rates. The accord is projected to help unlock total investments worth more than €140 million in the real economy, of which at least a quarter will be allocated to projects helping to promote the green transition. Around 70% of the funds will be allocated to small and medium-sized enterprises (SMEs), while the remaining 30% will go to mid-caps.
In parallel, the EIB and Mediocredito Trentino-Alto Adige signed an advisory agreement aimed at stepping up investments supporting the green transition. The EIB advisory services, provided under the Green Gateway programme, will help Mediocredito Trentino-Alto Adige assess the eligibility of green projects and monitor their impact. It is also meant to strengthen Mediocredito Trentino-Alto Adige's understanding of the EU taxonomy and to encourage the development of new financial products dedicated to climate action.
“This operation demonstrates the EIB’s strong commitment to supporting economic growth and the decarbonisation of Italian industry,’ said EIB Vice-President Gelsomina Vigliotti. ‘In addition to providing funds on favourable terms, the EIB will make available advisory services to help increase the share of sustainable financing and thus promote the green transition of the economy.”
SACE Chief Executive Officer Alessandra Ricci said: “We are pleased to work together with the EIB alongside Mediocredito Trentino-Alto Adige in this key operation, which enables us to support small and medium businesses in their most important and strategic projects, such as in sustainability. All this makes this operation a great opportunity to impact more than just the real economy and the community.”
General Manager of Mediocredito Trentino-Alto Adige Diego Pelizzari said: “We are delighted to have received this prestigious vote of confidence from the European Investment Bank and SACE. We are keen to capitalise on the opportunities provided by the European Union and transfer them quickly to the local economy in Trentino-Alto Adige and the north-east of Italy. We are also grateful for the support of the EIB’s advisory service, which will not only enrich our strategic know-how but will also enable us to promote sustainable investments and actively contribute to the green transformation of businesses.”
Background information
EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.
Funded by the InvestEU Advisory Hub, the Green Gateway advisory programme was set up by the EIB to help financial institutions speed up lending for climate action and environmental sustainability projects as part of EIB financing. The Green Gateway advisory programme has two main areas of intervention: online tools and a bilateral advisory programme.
Online tools include a green eligibility assessment tool – the Green Eligibility Checker – and an e-library with guidelines and case studies on green eligibility criteria. The bilateral advisory programme provides capacity building, market analysis and support to banks to speed up and increase green lending to small and medium businesses, mid-caps and public entities. Six financial institutions in Italy have benefited from the Green Gateway’s bilateral advisory service so far.
SACE is an Italian insurance and finance company directly controlled by the Italian Ministry for the Economy and Finance. It specialises in supporting companies and the country’s economy through a wide range of tools and solutions to boost competitiveness both in Italy and across the world. For more than 45 years, SACE Group has been the key partner for Italian companies that export and grow in foreign markets. It also supports the banking system, using its financial guarantees to make it easier for companies to access credit to support liquidity, investment in competitiveness and sustainability under the Italian Green New Deal, starting with the domestic market. SACE Group is present all over the world, with 13 offices in target countries for the ‘Made in Italy’ label. Their role is to establish relationships with leading local counterparts and, via dedicated financial instruments, facilitate business with Italian companies. With a €164 billion portfolio of insured transactions and guaranteed investments, SACE and all of its Group companies — SACE FCT in factoring; SACE BT in credit insurance, surety bonds and protection from construction risks; and SACE SRV in credit recovery and information asset management — serve over 40 000 businesses (mainly small and medium-sized enterprises), supporting their growth in Italy and in around 200 countries worldwide.
Mediocredito Trentino-Alto Adige supports the development of small and medium-sized enterprises with medium and long-term credit, leasing, financial advisory services and extraordinary finance operations. We offer our services as a corporate and investment bank through our operating offices to advise and assist companies in investments, and we also draw on subsidised domestic and EU funds. We have a desk specialising in project finance and public works for investments in renewable energy and infrastructure. Through minority equity shares we assume a role as capital partner of our clients aimed at development plans and any subsequent listings on the capital market. We operate in the roles of advisor, arranger and subscriber of minibonds, following the issuing companies every step of the way, as needed, until the issuance of the security. We provide specific advice for small and medium businesses interested in approaching the capital market and listing on the Euronext Growth Milan (EGM) market.