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Summary sheet
Release date
9 February 2023
Status
Reference
Signed | 23/12/2022
20220327
Project name
Promoter - financial intermediary
ILLIMITY SUSTAINABLE LOAN FOR SMES
ILLIMITY BANK SPA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 100 million
not applicable
Location
Sector(s)
- Credit lines - Credit lines
Description
Objectives
The EIB loan to Illimity will finance green transition projects of Italian small and medium sized enterprises (SMEs) operating in eligible sectors.
The aim is to finance the working capital and investment needs of eligible SMEs in Italy. At least 30% of the loan will be allocated to SMEs located in the Southern Italian Regions (as EU Cohesion cross-cutting objective) and 20% of the facility to climate action and environmental sustainability projects.
Additionality and Impact
Through this operation, additional resources will be channelled to finance eligible investments and short-term liquidity needs of Italian SMEs to weather post Covid19 recovery but also to cope with a new macroeconomic scenario of surge in energy price and higher inflation due to the impact of Ukrainian war. Moreover, the EIB's funding will contribute to support Italian SMEs in their green transition and will be critical for SMEs in Cohesion Regions particularly.
The facility addresses an important market failure that is SMEs' access to finance, which is driven by asymmetric information and which, despite improvement in recent years, still lags behind. This has become even more important in the context of the economic downturn caused by the War in Ukraine.
Through this operation, additional resources will be channelled to finance eligible investments promoted by SMEs and Midcaps: the additional lending capacity provided through the EIB's intervention will generate positive effects on investments thanks to the availability of long-term financing and of overall lower financing costs and will send a positive signal to the market regarding their financial soundness and credit worthiness.
The proposed loan is fully consistent with the EU objectives and responds to the definition of SME financing as a strategic priority objective of the Bank. The operation will also support the EU's and the Bank's priority objectives in the climate and energy sector and the EIB's climate action and environmental sustainability objectives through the development of renewable energy (solar PV), energy efficiency, clean transportation (EV vehicles and charging infrastructure) and sustainable water and waste management projects promoted by SMEs and midcaps in several industries. It will also contribute to Italy's 2030 decarbonisation targets of the 2030 NECP.
The main Climate action element of the operation, renewable energy and energy efficiency projects, reduces negative carbon and air pollution externalities and increases comfort and air quality in the dwellings, social and public benefits that are not fully internalised by private investors.
Overall, the projects are expected to yield good quality and results, thanks to avoided carbon emissions and employment creation. Moreover, the projects will be supported by adequate governance and capabilities of the FI.
The operation is therefore also eligible under Article 309 (a) projects for developing less-developed regions (over 50%).
Environmental aspects
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
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Summary sheet
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News & Stories
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Inside the project
How and Why
Tapping the potential of small businesses
Why
- Overcome the constraints of traditional corporate banks
- Help solve day-to-day hurdles that small entrepreneurs face
- Support small businesses in the south of Italy and companies fighting climate change.
How
- A digital banking platform including services like account opening, streamlined loan applications, simplified customer signing processes, efficient cash account management
- Companies have a comprehensive view of all their assets and can access their financial metrics in a seconds
- Small businesses are able to focus on important business tasks, rather than on time-consuming banking processes.
Sectors & Countries
Play video
3:30
Story
A big push forward for illimity
Amiran Tsintsadze is a Georgian entrepreneur who has lived in Rome and Milan since he was a child. He is head of digital lending and product management at illimity, Italy’s first fully digital and cloud-based bank.
Roberto Stasi is a loan officer at the European Investment Bank. In 2021 Stasi and Tsintsadze worked on a deal proving over €1 billion for liquidity needs of Italian small businesses under a programme designed to counter the economic impact of COVID-19.
In 2022 they worked together again to finance small businesses in the Mezzogiorno – particularly those with a focus on climate action. The €100 million loan from the European Investment Bank has been a big push forward for illimity.
The European Investment Bank has been a catalyst for our funding
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